Economic Disaster to Strike Again Unless Governments Change Course
- By Professor Prabhu Guptara
- Published 07/9/2010
Professor Prabhu Guptara
Professor Prabhu Guptara is Executive Director, Organisational Development, Wolfsberg (a subsidiary of UBS - one of the largest banks in the world). He is also Freeman of the City of London and of the Worshipful Company of Information Technologists, and Chartered Fellow of the of the Chartered Institute of Personnel and Development; he is also Fellow: of the Institute of Directors, of the Royal Commonwealth Society, and of the Royal Society for the Encouragement of the Arts Commerce and Manufactures; and he continues to supervise PhD research at the University of Fribourg (Switzerland) as well as to be Visiting Professor at various Universities and Business Schools around the world.
Earlier roles include: a Governor of the Polytechnic of Central London, Member of the Council of the British Institute of Management, of the International Federation of Training & Development Organisations (IFTDO), of the Association for Management Education and Development (UK), of the South East Regional Council of the Confederation of British Industry.
Judge, 1988 National Training Awards, 1980 Commonwealth Poetry Prize, 1990 & 1991 Deo Gloria Prize for Fiction; Chair of the Panel of Judges, Deo Gloria Prize 1992 & 1993.
Experience with an enormous range of organisations including: Akzo Nobel (Netherlands), the Associated Banks Institute (Germany), Barclays Bank (UK), British Petroleum (UK), the Council of Europe, Cultor (Finland), Deutsche Bank (Germany), Groupe Bull (France), Federation of Finnish Engineers (Finland), the International Management Association of Japan, Kemira (Finland), Kraft Jakob Suchard (Switzerland), Leadership Academy (Finland), Nokia Telecommunications (Finland), Novo Nordisk (Denmark), Sedgwick International Insurance and Reinsurance Brokers (UK), Singapore Institute of Management, Sonatrach (Algeria), Sun Alliance (UK), UNCTAD, Valeo (France), and so on.
Organiser, chair and lecturer by invitation for numerous international conferences, he has contributed widely to radio and television in the UK and other countries (The Money Program, Any Questions) and has written for Financial Times (London, UK), The Guardian, The Times and other publications; articles, for example, in The Gower Handbook of Management, The Gower Handbook of Quality, and the International Encyclopedia of Business & Management (Routledge).
A CD-ROM has been issued of his lecture at the Professorenforum, University of Zurich, titled "Making the World Better - Why it does NOT happen...and what TO DO about it"
Further information available from firstname.lastname@example.org
His best-known research publication is "Top Executives in the Global 100 Companies and their IT-Competence" (ADVANCE: Management Training Ltd., UK, and Wolfsberg Executive Development Centre, Switzerland, 1998); and he is included in Debrett's People of Today and in Who's Who in the World. Professor Prabhu Guptara lives in Switzerland.
It is true that expansionary economic policies, which were called for by some global leaders last month, can lengthen the financial debacle which started in 2007 and which is not yet at an end.
It is also true that the G-20 participants who called for fiscal restraint are at lesat partially correct: governments cannot indefinitely and endlessles spend, nor can they infinitely expand money supply.
However, it was not government deficits and debts that caused the current crisis. It was the nature and current structure of the financial system. Specifically, it was "the Shadow Financial System" that caused the crisis.
So the problem is not what one commentator calls "the national howling we have seen against pension-fund reform in France or spending cuts in Greece and Spain". (Apparently, according to such commentators, governments can and should bail out rich stockholders when their stocks run into trouble, but governments should not do anything to help the poor).
The actual problem is rather that nothing substantial has been done so far about the shadow financial system, and nothing subtantial now looks as if it is going to be done any time soon.
Regretfully, the G-20, meeting in Toronto last month, copped out of any attempt to reform the system.
That is the real reason that we are seeing the economy teetering between mini-rallies and aversion to speculation, leverage and risk-taking.
Given time, governments are apparently hoping that the risk-takers will come back into the market.
If they do, there will be another real boom.
Follwed by another bust - which naturally therefore will be worse than the current one. Sphere: Related Content