Trust is one of the most valuable asset in the workplace even all aspects of life. Once trust is lost it is almost impossible to earn back. Many marriages, friendships, businesses or even governments fail because of lack of trust. Trust return in equal measure to how it has been given. It depends on the circumstances too. Conflict between interest lead to mistrust that ultimately lead failure state. So leader is responsible to unify the interest.

There is mistrust going on between bankers and government. Because of ongoing financial crises governments have been seeking support from the bankers to put cap on their bonus. For example news published in The Guardian on Tuesday 4 March 2014 said that HSBC, UK decided to pay its chief executive an additional £32,000 a week in allowances on top of his £1.2m salary, Virgin Money raised the salary of its boss to £637,000 from £550,000. Royal Bank of Scotland, which is 81% owned by the taxpayer and paid out £567m in bonuses after making an £8bn loss. It is off course a terrifying figure of inequality as many intellectuals and consultant are working for pittance. However, bankers says if done so they will move another country straight way. No solution has been made yet.

The estimated hydro power potential of Nepal is 83,000 MW of which 114 projects having 45, 610 MW have been identified economically feasible. Current total production is less than 1000 MW. Government is seeking help from international community and banking sector to accelerate hydro power projects. But bankers are asking government for stable and investment friendly environment. Now they are investing on housing and hire purchase meaning current huge trade deficit consequences of increasing import. More than half of the country’s economy is still un-monetised and run in barter system. Expansion of banking branches is definitely in need. But due to high risk, banks don’t want to join to rural part of the economy. It seems that financial services are desperately needed as money is blood for economy but banks always do care about their profit.

Bankers off course are mediator in the money market. They do offer negligible interest for deposit but collect huge sum even from the vulnerable market by investing people’s deposit on housing and hire purchase. Considering gross economic interest and people’s benefit housing and hire purchase are considered least productive but they are less risky and quick yielding sectors of investment that encourage import. So bankers always explore less risky and quick yielding investment opportunity so that their profit, ultimately bonus, would be hatched in the market. In Nepal, people don’t have trust politics nor do the political parties have trust on people as they always seek favour for their baseless ideology. There are many examples of mistrust going on between countries and between leaders as well. This is an example of lack of global leadership that hints to clear future disorder.

On the other side people off course consumers are miserable situation seeking help to get out from decreasing real income due to inflationary situation of recession. From the view of people, government is doing politics for nothing. Bankers are selfish only seeking profit from their deposit instead of doing best to get out from recession. Since Lehman Brother was declared bankrupt, world economy have been experiencing acute economic recession. Government is forced to take austerity measures. Still recovery has not been achieved yet. Professor Joseph Stiglitz says in his book ‘Making Globalization Work’- that large international banks prefer to deal multinational like Coca-cola, IBM, and Microsoft, the real losers are small businesses’. And Professor Deirdre McCloskey says in her new book, The Bourgeois Virtues: Ethics for an Age of Commerce that markets grow in “ethical soil.”  David K Williams writes for the Forbes online magazine ‘‘We own our failures, we learn from them, and we share them publicly so that others can learn from our failings as well, We don’t believe in treading water.’’

Trust is lubricant of running businesses smooth. Trust is an essential moral issue and it is deeply embedded in and to a great extent, determined by culture. Political parties, government, bankers and people are stakeholders of the economy but there is mistrust between the stakeholders. It is difficult to gain trust when the situation is running through uncertainty. For global economic recovery there is no alternative between stakeholders but to work together.

06/04/2014

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UniBath lecture
This post was referred in a public lecture program by Dr. Steve Cayzer, Uni Bath UK, during his public lecture on ‘sustainability and innovation/May 1, 2014.

 

 

 

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