Sustainable and Resilient: How Long-Term Thinking
Promotes Optimism about the Economic Future of the
World
Introduction
Before embarking on the exploration of the theme, observe the cases below:

Initiating in the late 1990s, the dot-com bubble flourished throughout the decade until the
unavoidable burst in the 2000s. The WWW simplified the startup process, inviting many
impetuous investors. The focus shifted from quality to marketing and speculation. By
March 10, 2000, the NASDAQ composite witnessed a record-setting high of 5132.52
(Newsweek, 2020). The surge initiated a massive sell-off from the latter half of 2000 to
the end of 2001. The investor loss from the bubble burst stood at approximately $5
trillion (CFI, 2020).

Tourism is a profitable income source, supporting development and increasing
employment rates in many nations. Nevertheless, over-tourism is a threatening yet
common phenomenon in many famous tourist destinations. A notable example of
irresponsible tourism is Boracay Island in the Philippines. According to government
statistics, Boracay Island contributed $1.07 billion in national revenue in 2017 (TIME,
2018). In 2018, the government shut down the destination for three months to reverse the
destruction caused by an ill-planned sewage system. According to the Environmental
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Ministry of the Philippines, 195 businesses and over 4,000 residents had no sewer line,
resulting in a menacing sewage problem. (The Guardian, 2018)
Is a pattern visible?
All the above scenarios are the outcome of short-term thinking. Short-term gratification is
prioritized over long-term achievement and stability in every sector of the modern world.
Myopic policies, unsustainable urbanization, top-level business companies focusing on making
instant profits over maintaining quality—the list is never-ending. While instant success is
satisfying, the aftermath is disastrous. Climate change, recessions, and debt crises are some of
the destructive consequences of short-term planning. In this volatile world, the necessity to
continue long-term thinking is being reiterated everywhere.
Defining Long-Term Thinking
Long-term thinking is a buzzword in today’s corporate world. While there is no exclusive
dictionary definition of this term, it can be loosely defined as the planning focused on long-term
aims and rewards. However, there is a related philosophical theme known as ‘long-termism,’
which is a moral view focusing on the welfare of future generations. (The Economist, 2022)
Hypermetropic: The Benefits of Long-Term Thinking for the Economy

Sustainable Economy: Attaining sustainability is one of the most formidable goals of
the 21st century. A sustainable economy can be defined as an economy that is inclusive,
low-impact, and eco-friendly. In a report published in 2021, the World Bank underscored
the proper utilization of human and natural capital to promote sustainable, long-term, and
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inclusive growth. Mari Pangestu, managing director for development policy and
partnerships at the World Bank, said, "Renewable natural capital and human capital
must be given the same importance as more traditional sources of economic growth so
that policymakers take steps to enable long-term prosperity" (Reuters, 2021). The
principle of sustainability is to take initiatives with intragenerational and
intergenerational impact. A sustainable economy will serve the present and upcoming
generations. Long-term thinking is the only way to direct our actions beneficially for all
generations.

Improved Risk Governance: Risks are an inherent part of any mechanism. Overcoming
short-termism is crucial to assuage potential risk factors. At Sustainable Development
Impact Summit 2020, Peter Giger, advisor to the ETH Risk Center, said, "When it comes
to risk management, we have to get over the human condition. We have to learn to deal
with rare events. From a government perspective, it's about whether you govern for the
next election or the next generation." (WEFORUM, 2020).
Recently, the international sanctions on Russia increased the global fuel price. Russia is
among the largest fuel providers in the world. In 2021, Russia exported 4.7 barrels of
crude oil daily, 8.9 trillion cubic feet of natural gas, and 262 million short tons of coal
annually. (USEIA, 2021) With the embargoes, the world is now suffering from an energy
shortage. Among all nations, Italy has shown an exceptional response to the oil price
hike. Soon after the eruption of the war, Italy started to diversify its fuel sources and
LNG to deplete its dependency on Russian energy( Al-Jazeera, 2022), managing to keep
the price under control. Here, preventive measures helped Italy to combat the crisis.
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Currently, the HICP for natural and town gas in Italy (150.5 points) in July 2023 is lower
than the average of the Euro area (165.04 points) (Trading Economics, 2023).
Winning the Long Game: Essential Strategies for Proper Implementation of Long-Term
Thinking
The Doomsday Clock stands 90 seconds away from midnight—the closest to a global
catastrophe. Factors like climate change, the risk of nuclear warfare, disruptive technologies, the
post-pandemic crisis, etc., contribute to this forward progression. These distressing
circumstances are discouraging. Nevertheless, it is still possible to remain hopeful and diligently
act toward a sustainable world. The factors that can be considered to realize the goal include:

Effective Policymaking: The government's policies shape the future of a nation.
Unfortunately, in many countries, policies and initiatives focus on rapid results. Political
myopia comes with daunting consequences. Proper policies can prevent short-term
damage, and even reverse the damage of astigmatic decisions. Sweden’s economic
reform in the 1990s is a perfect example. Following World War II, the monetary policy
of Sweden was focused on the centralized regulation of financial institutions. In 1974, the
Riksbank earned the legal right to impose restrictive codes and applied them to interest
rates, liquidity ratios, and lending. (Englund, 2015) After the 1985 election, the Riksbank
abolished the strict policies. This so-called ‘minor policy adjustment’ enticed widespread
borrowing and intense market competition. It resulted in an inflation surge to 10% in
1990, contrary to a declining trend observed in previous years. However, the inflation
rate dropped sharply afterward. Consequently, asset price declines, bankruptcy,
unemployment, and budget deficits affected the economy. Between 1990 and 1993, the
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unemployment rate ascended to 10.1% from 2.3% and the public sector savings went to
an 11.2% scarcity from a 4.1% surplus (Hassler, ZBW). To counter the damage, the
Swedish government undertook several unique policy measures ensuring long-term and
short-term success. Bankstödsnämnd, an independent bank support authority with openended funding, was established. A differentiated resolution policy was applied,
categorizing the banks based on their capital adequacy ratio. Two bank asset management
corporations were set up to manage bad debts. It was successful as the revenues earned
by the asset-holding liquidation balanced the fiscal cost of supporting the financial
system (Jonung, 2009).

Collaboration: Strategic partnership is vital in every level of function. PPP (PublicPrivate Partnership) is a tactic adopted in many nations to complete projects targeted
toward accomplishing long-term benefits. Cabeolica is remarkable evidence of PPP for
futuristic development. It is the first wind-power PPP project established in Sub-Saharan
Africa. In coalition with AFC, Finnfund, and InfraCo Limited, the Republic of Cape
Verde developed a scheme with the target of producing wind energy for the National
Electricity Grid (UNECE, 2014). It resulted in a nearly 20% decrease in energy
production costs. Moreover, 95% of the population was provided with affordable and
cleaner power. (UNECE, 2014). Other nations can adopt similar approaches to attain
long-term value for money via calculated risk transfer and complement the limitations of
the government (World Bank, 2022).
Conclusion:
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Our moral duty is to make the world a better place for everyone. In various situations, we need
optimism to attain resilience. Resilience is unattainable without future-oriented thinking, and
long-term thinking facilitates it. From the above analysis, it can be concluded that cohesion and
adequate policies are necessary to promote long-term thinking and foster optimism.
Works Cited
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(Accessed Sept 30)
(Bulletin of the Atomic Scientists)A time of unprecedented danger: It is 90 seconds to midnight 2023
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(
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