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is a period of global economic slowdown. The International Monetary Fund (IMF)
takes many factors into account when defining a global recession, but it states that global economic
growth of 3 percent or less is "equivalent to a global recession".By this measure, four periods since
1985 qualify: 1990±1993, 1998, 2001±2002 and 2008±2009.

The global recession has slowed development and progress towards achieving the Millennium
Development Goals(MDGs). The International Monetary Fund estimates that the global economy
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contracted by 0.6 per cent in 2009 and the implications of this have been severe for many. Economic
2
growth in developing countries was only 1.7 per cent in 2009 compared with 8.1 per cent in 2007 .
However, if China and India are excluded, the economies of developing countries actually contracted
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by 1.8 per cent . The World Bank has estimated that an additional 64 million people will be living in
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extreme poverty on less than US$1.25 a day by the end of 2010 as a result of the global recession.
The capacity of developing countries to respond to the crisis varied considerably. Countries with a
heavy reliance on export revenue and foreign investment were most exposed to the impacts of the
downturn. Those with stronger economies and more financial resources were able to implement
effective policy responses to support the economy and weathered the global recession relatively well.
Others, including many of the Pacific Island countries, had less capacity to respond.
Although uncertainty remains, the global recovery is underway, with major developing economies
such as China, India, Indonesia and Vietnam leading the way. The World Bank estimates that
developing economies will expand by 6.2 per cent and 6.0 per cent in 2010 and 2011
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respectively. The key challenge now for the Australian aid program is to help our developing country
partners build long-term economic resilience and regain momentum towards achieving the MDGs.
Shared and sustained economic growth remains the most powerful long-term solution to reducing
poverty and is a central theme of Australia's aid program. Economic growth creates jobs and income,
and generates government revenues which can be invested back into communities, schools and
health facilities. This is important because health and education are themselves critical drivers of
sustained economic growth. The Australian government is committed to helping developing countries
ensure the benefits of economic growth are equitably distributed, environmentally sustainable and
contribute to progress towards the MDGs.
Although recovery from the global recession is underway, there continue to be significant challenges
to progressing growth in developing countries. The Australian Government is therefore providing a
range of growth enhancing initiatives in such areas as infrastructure investment ($562 million in 2010±
11), rural development ($292 million in 2010±11), and has recently doubled support for microfinance
and financial services to $18±20 million per year (compared to 2007±08). These initiatives are
designed to assist our developing country partners to achieve inclusive growth, build economic
resilience and accelerate progress towards achieving the MDGs.
A recession occurs when there is a fall in economic growth for two consecutive quarters. However if growth i s very
low there will be increased spare capacity and increased unemployment; people will feel there is a recession. This
is sometimes known as a growth recession.

see also: Definition of Recessions

If there is a fall in AD then according to Keynesian analysis there will be a fall in Real GDP. The effect on Real GDP
depends upon the slope of the AS curve if the economy is close to full capacity lower AD would only ca use a small
fall in Real GDP.
In these days of global economic meltdown there is every reason why we should begin to
exploit ways of cushioning the effects of the economic meltdown on us and our family.
To do this there are things we need to know and do. To succeed you must know what to
do at any point in time. As the saying goes; 'knowledge is power'.

The following are the practical steps we need to take to get wealth:
1. review your strength and weaknesses
2. self employment
3. choose a market niche
4. planning
5. take off as soon as possible
6. be focused and remain focused
7. make provision for charity
8. save consistently
9. invest your savings wisely

Review your strength and weaknesses

Everyone of us have our areas of strength and weaknesses. Identif y the areas of your
strength and weakness. For example, some of us are good at mathematics, some English
language, while others are good at fixing things with their hands.

Take a sheet of paper or a note book and write down your area of strength and
weaknesses keep it away for two or three days and come back to it again and review all
that you've written to ensure that you did not miss any vital points.

However, don't focus your attention on your weaknesses as that will make you develop
the spirit of 'I cannot do it' which an easy way to failure. Rather, focus your attention on
your area of strength and work out haw you can improve on these areas. Get
information and training on these areas, as this will help you make a better choice at the
end of the day.

Identify and consult people who are already operating successfully in these areas seek
for mentor ship from them.

Self employment
No amount of money paid to in an employment can make you rich and guaranty you
financial freedom. Self employment is the only thing that can guaranty you financial
freedom and wealth. Hence, you must go for self employment, either part-time or full-
time if you really desire financial freedom.

With the advent of the internet there are numerous opportunities for home based
businesses which anyone desirous to make money legitimately can go into some with
little or no capital. You can these businesses from the comfort of your home.

Choose a market niche

Though there numerous marker niches out there to choose from, but making a wrong
choice here can lead to frustration and failure in business.
Some of the criteria for choosing market niche are:

a. Your area of strength. Does your choice fall in line with your area of strength? It is
easier for you to make it in your area of strength than your area of weakness.

b. Your training and experience. Choose a market niche you already know enough about
either through training or experience)

c. Interest.
Choose a market niche that is in line with your interest. You must love what you are
doing; otherwise, you'll not be able to persist in time of challenges. Remember that one
of the secret of success is 'persistence'.

Planning.
As the saying goes, 'one who fails to plan, plan to fail'.
You must have a plan. It is your compass.
Write your plan down on paper.
Your plan should have two main components - short term and long term.
Your plan should have monetary values.
They must not be vague, but specific.
Must not be outrageous but reasonable and attainable.
Must be goal targeted.
Break your plan down into weeks, months and year.
Have a mechanism to monitor your plan implementation so that you can quickly make
amends on time whenever the need arises.
Take responsibility for the failure or success of your plan. Don't push this responsibility
to other persons.

Take off as soon as possible

You must avoid procrastination as this is sure source of failure.
Take off as soon as you can because business environment is dynamic and not static.
Information is being updated often and as such, if you delay your take off, the
parameters on which you based your projections might have become obsolete or
unreliable.
Start small. Don't wait until you can start big.

Be focused and remain focused

Don't allow anyone or anything to distract you.
Put in all you have into the bu siness.
Be persistence no matter what.
Avoid frivolities and shadow chasing.
Believe in yourself.
Be proud of what you are doing.
Seek ways to improve your skills and managerial capabilities.

Make provision for charity

When the money starts rolling in, don 't be greedy, yet be prudent.
Give regularly to the work of God and to the less privileged in society. As the saying
goes, 'a giver never lacks'

Save consistently.
Save. Don't consume all so that you can expand your business.
Avoid luxuries that do not match with your level of income.
Avoid spending on impulse; rather spend inline with your plan.

Invest wisely.
Do diligence inquiries before choosing an investment.
Choose investment that has potential for growth.
Choose investment that you can manage otherwise get someone else to manage it for
you it for you as an alternative.
Do not choose an investment because your family members or your friends are investing
in it. Choose it because it is right for you.
Choose investment in the area of your interest.

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