"Debt management": a term that is difficult to be conceived by those who are not aware of it; however, this term indicates that certain experts are trying to find solutions to the economic problems in a less distressing way.
"Radical change and transformation of the economic context": another term that is also difficult to be conceived but it may have a positive impact if and when it is applied properly.
Those who are wary of words are going to say that these are just words and that actions speak louder than what is said.
They might be right if this situation referred to a country of the West going through a crisis; they might be right if they were talking about one of the many highly paid committees established without being required to promise that it will solve the financial problems of the country but promising that it will solve the financial problems of … the members of this committee…
This is not the case, in Dubai… "The debt management" or "the radical change and transformation of the econ-omic context" are not just idle words. It is not just vain hopes in order to "sweep the whole matter under the carpet" and have a bigger problem later on. The issue was not, of course, to gain time for the government.
The Government of Dubai has paved the way for the exit from the crisis. It has established a Debt Management Bureau, proceeded to the radical change and transformation of the economic context and worked in order to achieve its goal.
Last year we were informed that the economy of the emirate is going to collapse and its bankruptcy was a matter of time. The negative comments and the disinformation by the different "well-wishers" and the detractors were rampant. So, the foreign people either decided to leave the country or they began to pull back. Suddenly, the analysts realised that the whole structure was based on flimsy foundations. The jealousy, the envy, the malice and the hypocrisy were revealed in all their glory.
Dubai regained its dynamism and disproved its mischievous critics. The situation has already changed and it is going to change further. The foreign citizens who had left the country came back and new cooperation agreements were pursued. The property prices stopped dropping and the tourists who had cancelled their hotel reservations booked them again. The economic, social, educational and cultural activity is in full process. Consequently, the foundations of the structure were not as … flimsy as the analysts pretended they were. There was a background and there is a plan to be implemented providing a standing solution. This is clear through the daily decisions of the government and the vision of His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, for 2021.
The big crisis wore off and everything is settled having a plan. Life is back to normal again. The risk of bankruptcy became a bad memory. However, there is something else that is left: the good sense and the vigilance of the government. However, there is no room for complacency; no government can afford to be complacent just because the crisis wore off. Our primary goal should be not to go through another crisis again. Therefore, the reasons that led to that crisis are detected and any difficulties are overcome.
Radical change
The debt management and the radical change and transformation of the economic context are not just idle words. It's something that is done; it's something that is planned and brings results.
Above all, however, it may show us what a government that is determined not to let its people suffer due to the crisis can do and teach the other countries especially the European countries the dynamism and the solidarity of the Muslim people. The spreads that hit record high and IMF can not solve any problems; words can not solve the problems… A direct and coordinated action should be taken and solidarity and support is the answer.
For my part, as a European, I would like to suggest that we should have our Debt Management Bureau established as well. Even if we are not able to manage our finances as Dubai did, we could at least try to deal with our debt to the European Union, to the European architecture that General Charles De Gaulle visualised as the United States of Europe.
Finally, we should manage another debt too; we should learn a lesson from the methodical work in the Emirates.
Basilis Tsiounis is Vice-President, EUSME-European Union of Small & Medium-sized Enterprises; Honorary Ambassador of Germans for the SMEs; Board Member of the European Small Business Alliance and Honorary President EUMU-GREECE
