Here is the second part of the much awaited series on Vijay Eswaran’s Touchstone to surviving the global economic depression.

The dust has settled somewhat and amidst the rubble and ruins, the economic landscape is emerging slowly and gradually out into the open. It is clearly evident that this time around the economic crisis is here to stay for at least most of the coming year, if not more. In terms of the first world, it has been devastating. The damage and the ensuing ramifications will remain far reaching and continue long beyond even the next 12 months. However, here in the third world, it is the next 12 months that are going to decide what the next 12 years will be like. The downturn has had its direct fiscal effects that have already hit the third world as a result of the concentric circles of this first world crisis that have spread out from its apex which has been essentially, the United States.

In so far as the man on the street is concerned however, the question is how does the collapse of companies that he may have only vaguely heard of halfway across the globe in a country that he may never even want to visit, affect him? The reality is, it will, even though it may be only as a subtle result of this first world debacle. It will however slowly but surely permeate the third world economies simply because of this so called global village syndrome. Then again the realities of the first world are not necessarily the realities of the third world. Add to that the fact that over here we have undergone at least two if not three other periods of recession in the last decade, namely the 1997 Asian Economic Crisis followed almost closely by the year of the so called bursting of the internet bubble. To top that one can even add the SARS epidemic crisis in 2003. Having gone through all this, we have come out arguably more resilient and more experienced. What is clearly self-evident is our ability to adapt, adjust and accommodate. And in a nutshell to all those out there, that is the simple yet in depth answer ...the 3 As – Adapt, Adjust, Accommodate.

The first A, which is to adapt is singularly the most important. The first stage of adaptation requires inherent changes in our attitude and expectations. To consciously not recognise that there is a worldwide economic recession and to try therefore to retreat into a cocoon is not only unconscionable but essentially redundant. It is in a fashion almost like the people who did not recognise the withdrawal of the sea as a sign of an oncoming tsunami and continued sunbathing.....!

We have to inevitably accept that it is going to affect us and we need to adapt accordingly by reviewing what we need to spend and how we spend it; by understanding that our sources of income now cannot solely depend on any single particular source; by recognizing that exploring a second, third or even fourth source of revenue is at this stage, supremely important. There are many things one can do if one were to look at the environment around us. Ultimately, people are going to require the same staples, and they are still going to require it at the same quality but at the cheapest possible price point; likewise, with services. There are always products and services that one can individually or in a group bring to the table.

It brings to mind tales that I have heard on my grandfather’s knee of how Malaysians adapted to the Japanese occupation….and adapted rather well. Rice was substituted by yam or barley. Sugar was substituted by other sources, food was grown in the backyard and ultimately we survived. Now, I am not suggesting anything so drastic today, but all of us have inherent abilities to source goods and provide services from the homestead that we have not explored or chosen not to explore.

The second element is to adjust. This in turn, requires us not to just live sparingly or frugally but rather to live economically and even ergonomically. Meaning, one has to realign the household budget and cut our cloth accordingly while respecting the earth and its resources. The fundamental role here is to recognise that the best things in life are free. And to try and incorporate that in a lot of what we do. Going to the mall is not necessarily the only entertainment in life. A homemade picnic by the beach sometimes can be a lot more productive and enjoyable. The point again being that one merely needs to reassess all of these new realities. Where we cannot find jobs, we can create them. It does inherently boil down to our confidence and self esteem. If we believe we can do it, we will. Adjusting is a mental state, more so than any physical requirement, it is more so about reduction of expectation as opposed to sacrifice. It is at the same time, the easiest and yet most difficult thing to achieve because it requires one to shift paradigms. As most of us are resistant to change, this is one obstacle we have to overcome within us.

Accommodation, the last but not least is the most rewarding part. It is where we embrace the changes and challenges that this period will bring. If we can reduce our need for pomposity and thereby realign our self image, we can just about do anything that needs to be done. If we are not going to be so sensitive or averse to what the neighbours would say, then the world becomes literally our oyster, for there is so much to be done. Accommodation requires us to physically move out and anticipate. People in times of need, have different needs, not less needs. There is a story about a real estate agent who basically made his fortune during a recession. When asked how, he said, “I stopped selling the beachside condos and upscale bungalows and focussed on the studio apartments and refurbished urban budget accommodations.”

And that is what this is about. The trick is to realise that even this, will eventually pass away. Adapt, Adjust and Accommodate.