TURBULENT TIMES

What a roller coaster of a ride the world economy is going on, exciting at times but mostly rather scary. The financial markets are waiting for an American rescue package to restore confidence to world markets and financial institutions and indeed now the man in the street is increasingly worried about the effects on the real economy.

The diamond business has enjoyed the years of unprecedented spending and borrowing which in some cases has encouraged irrational exuberance in our industry, like so many others.

In good times an auto-pilot system can run smoothly, however, in turbulent times you want the reassurance that the captain is at the controls, vigilant and ready to react.

It has always seemed to me that the real challenge for management is being seen to be firm in resolve but, like a good pilot, flexible and alert enough to make sure that the passengers and crew get to the destination relatively unscathed.

Having been in the industry for a while now I have experienced a few bumpy rides and we had our very own crash in the early 80s which had devastating consequences for the industry and a number of leading companies didn’t survive, those who did were left to rebuild the business slowly and cautiously.

However, we must not forget that the economic environment today is totally different in the world and in our business. Globally people have become wealthier through dramatic political, economic and social change. Our industry has benefitted hugely from this increase in disposable income and despite the doom and gloom most of the industry should in fact be well placed to successfully weather the difficulties ahead as long as we work closely together and have confidence in each other, against the background of an improving world economic scenario when it comes, as it most certainly will.