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Taking half measures, tinkering at the edges is not enough if businesses want to drive growth forward
In a speech given in Dublin to honour the memory of The Honourable James Michael Flaherty, P.C the Governor of The Bank of England, Mark Carney, called for the Euro area to take the bold path necessary to escape the debt trap which is threatening another lost decade. Quoting an analysis which indicated that it would take the Euro area 8 years to achieve the sort of recovery which Canada achieved in 2 years, he commented that the “currency union has been relatively timid in putting in place the other policies and, crucially, the institutions necessary to deliver sustainable prosperity for its citizens.”
Acknowledging that building institutions at a time of reform fatigue may not be easy Mark Carney said that now is not the time for half measures if the Eurozone is to escape the debt trap. Contrasting measures taken within the Eurozone with those taken within the UK Mark Carney highlighted the UK success in creating an economy which is open and flexible with an integrated financial system.
Although relating to macro financial policies many of the comments within the speech could equally apply to organisations which are struggling to raise themselves from the recession. Taking half measures, tinkering at the edges is not enough if businesses want to drive growth forward. What is required is a conscious setting aside of reform fatigue and the embracing of a new business culture; one which is open and flexible, which seeks to be innovative and looks to integrate with suppliers, customers and investors in a combined vision for the future.