Recession refers to decline in a country’s gross domestic product (GDP) growth for two or more consecutive quarters of a year. A recession is also preceded by several quarters of slowing down.
The global economic slowdown started in late 2007 with the emergence of sub-prime losses in the United States. It further tumbled down with the risky loans and over-priced assets. This lead to the crash in stock market, companies shutting down, people losing jobs and therefore led to less spending in the market which spiraled into further downfall of the world economy.
In India the effect came as the sensex crashed while the foreign investment started to withdraw and dwindle. The real estate sector got affected severly. The common man suffered as jobs were lost, exports decreased and the common man’s confidence in the market reduced. Comparitively, India has been one of the few countries least affected by the recession as it’s GDP fell from 9% average of the past four years to only 6.7% in 2008-09.
To summarise the global recession affair, it was the mismatch between the wealth and money. Wealth means an asset or experience which is valuable to us and money is the means to get it. There was more money and less wealth for that money in the market. Due to which, the fluidity of wealth reduced. The transformation of wealth into money and vice-versa reduced.
This phenomenon affected everyone. Let’s see how we can use it to our best.
Pros of Recession
Cons of Recession
Design is the answer
When the winds of change blow, some people build walls, others build windmills.
Design with it’s inherent nature of understanding the context first and creating something for its future is the ideal solution to the current problem of recession. An analysis of the situation at a systems level today can avoid any future mistakes to cause similar situations. Design arms one with such tools to gauge the system, understand the people in the system and creatively solve the problem. Design also considers the consequences of our actions on our planet and it’s people. Thus, design is emphatic at it’s very core.
With it’s multi-disciplinary approach, design can create new solutions to problems of today and the future. Against the popular misguided notion of design creating more junk than useful things, with design we can reduce any excess production and costs, create better products and services with fewer and better resources, create larger markets through better products and services, streamline processes, motivate the workforce, understand the user and thus lead the economy towards recovery. The reiterative process of design would make sure that constant feedback is included into the system for constant improvements and allows quick adaptability.
While understanding the lifestyle of people, we might often overlook the small details of their lifestyle to look for opportunities. Customised services and products are preferred in India at almost all social strata of the society. It’s not just the rich who can ask for customised vehicles or hire a famous fashion designer to create an ensemble. The little pleasures of getting things tailor-made as per one’s requirements makes one feel special and value the experience more. Often Indians see better value for money in certain customised offerings, more than mass-produced ones.
Today morning, I noticed two people sitting outside my apartment gate, weaving together brooms for people. It was the first time I had seen something like this. Normally, brooms would not be a topic that would be listed under the usual household product-customisation needs, but seeing the response they were getting, it seemed like they had found a very unique niche.Â Cost-saving, not enough options in the market, value-for money, the satisfaction of getting a quality product made by supervising the production process, unique household needs could be some of the reasons why some households would prefer using their services.
Cost-effective trendiness is another factor that leads the youngsters to the tailors to get custom-made shirts. Latest trends in the market were either very expensive or didn’t fit well as everyone had different physiques. Also, people considered that a tailor would spend more thought and effort on the clothes and thus it would last longer.
In the interiors of India, nobody might know about concept of mass-customisation, but they practice it very well nonetheless. When serving tea in the interiors of Gujarat, they also pour a little extra on the saucer. As the tea is pipinig hot when served and people on the go do not have time to wait, the tea on the saucer cools down quickly and by the time it is devoured, the tea in the cup is ready to be sipped.
The little service innovations that are brought about do not always have to be heavy on the pocket. The best things in life, if not free, can be affordable!
Creativity has definitely a lot to do with exposure and the awareness of endless opportunities. Knowing that there are more than one right answers, and answers that might exist somewhere but not in one’s sphere of reality or awareness.
A recent article published by the Economist states high correlation between one’s stay outside one’s native country and creativity. It also speaks about better negotiation skills of bilingual people.
Considering these factors and India, the relevance of this research seems somehow vague. Being bilingual is pretty natural for most Indians, atleast in the urban areas. Further, with such vast numbers of cultures, languages, customs and geography, each region in India seems like a new country. Would all this mean this makes Indians who live away from their hometown, are more creative? Or are we better at negotiations?
Also, it would be important to consider a country like the United Arab Emirates, where only 19% of the population consists of Emiratis (natives of the country) and the rest are all expatriates. With such a large expat population, the country rarely is talked about for it’s creativity.
We consider kids as creative. Most of them have never lived outside their domestic boundaries.They are creative because of their imagination and free-thinking.Â Travel and stay abroad might give you these qualities, but it certainly depends on the individual and the system around you.