VisionWorks' Breakthrough Solutions
Harnessing the Forces of Change
The Tsunami and the Global Economy – March 2005
The entire world was horrified on December 26
as we received news of the tsunami that struck several Asian
countries, causing over 200,000 people to lose their lives. The
vivid images of killer waves and incredible destruction transfixed
us as we watched and felt the vulnerability of fellow human beings.
What can we learn from this horrific event, and
are there any parallels with the global economy? Here are some
observations:
1)
We can control neither tsunamis nor the global economy. Our
nation and businesses can attempt to influence the global economy,
but sometimes these attempts backfire.
2)
Understanding these forces is critical. You probably heard
the story of Tilly Smith, the teenage girl who saved many lives
because she understood that when the ocean withdraws from the beach,
a tsunami is coming. (As one of the 90% percent of fishermen who
catch 10% of the fish, I probably would have followed the water out,
shouting about the “free fish” I found stranded on the bare sea
bed.)
3)
Technology can make a huge difference. Unlike the Pacific
Ocean, the Indian Ocean does not have a system of underwater sensors
that warns people when tsunamis are coming. All 500 families of the
Indian village of Nallavadu survived because word got to a local
telecenter, formed to teach IT skills, and the telecenter passed the
word to the villagers. Nations, communities, and businesses that
take full advantage of information technologies, the Internet, and
broadband connectivity have a tremendous advantage over those that
don’t.
4)
Logistics – being able to move goods and provide services to
where they are needed, when they are needed – are crucial. The
challenge of getting aid to those in real need was huge,
particularly as much of the infrastructure was damaged or wiped
out. Businesses able to provide goods and services to where they
are needed, when they are needed, have a huge competitive advantage
over those who are less effective.
5)
Communication is very important and is aided by new technologies.
At Amazon.com alone, in the first 11 days after the tsunami, 178,000
people donated an average of $80 each – $14 million to the American
Red Cross relief efforts. A blog sprung up – Tsunami Blog, which
served as a clearinghouse between relief organizations and those
eager to volunteer.
6)
The forces at work are under the surface before they rise up.
The tsunami shock wave traveled an astonishing 500 miles per hour
under the surface of the sea before it rose up and smashed the
shores. The impacts of a tsunami and the global economy can be
sudden, and they can strike a community or a nation without apparent
warning. The key is to understand these forces, prepare ahead of
time, and respond quickly when they strike.
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