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The Economics of Leadership

The Economics of Leadership

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The Economics of Leadership is intended to remind us and reinforce the fact that leadership really matters in building strong and prosperous organizations and nations. The BBC world Service once said that leadership is what happens when you are not there. This makes sense today as it did in the past. The test of how good your leadership is whether your organization will still be standing when you are not there. The recent economic and financial crises have been described by many commentators as the worst the world ever experienced in over 75 years. Many businesses are said to be suffering from “trust deficiency syndrome” as the distrust for businesses continues to spread the world over like a virus. The world seems to be in a state of confusion with current leaders not knowing exactly what to do to stir the nations and organizations out of the prevailing circumstance. The current reality is that economic decisions now determine political outcomes, unlike previously when the reverse was the case. We have seen that happen in Greece, Italy, Spain and France. The leaders were victims of the current reality. Some of these leaders lost their jobs even without any elections being held. The truth is that the world is in a desperate and urgent need for effective leaders to stir the course to national and global prosperity. Great leaders are high demand but in short supply. The point again should be made here, by analogy, that leadership, just like capitalism, is supply. This is the crux of this book. I have looked at leadership here using economics’ basic demand and supply or market economy concept. It is my hope and belief it will be of immense benefit to you reader and your organizations.