In the face of an economic collapse, the role of the government is invaluable. Governments have the power to avert an impending economic and financial disaster. If Argentina did it in 1999-2002 economic crisis, so can the any government
1. Encourage exports. The government should focus on the export business segment because it would infuse necessary foreign currencies into the country which would be used to pay debts, import goods and other necessities.
2. Provide Accessible Credit for Business. Local businesses should be encouraged by the government to compensate for unemployment thru extending credit to them. More businesses mean more jobs for the people. Or, at least, source of income for the family.
3. Improve Tax Collection. Implement speedy and effective tax collection measures. Taxes can finance government expenditures such as provision of credit to businesses or budgets for social welfare.
4. Set Aside Large Amount Amount for Social Welfare. This will quell panic and riots and restore confidence in the people. Positive outlook will be developed in the process. This will also enable people to get back of their feet and start anew.
5. Control Expenditures in Other Fields. Slash budgets on unnecessary expenditures in other areas – military, legislative, executive, other branches.
6. Improve Tourism. Lure more tourists to the country. More tourists mean more money injected to the economy. Businesses will naturally sprout even small businesses in order to cater to the needs of these tourists. The main problem is the lack of funds as businesses closed and investors pull out their investments. The solution is to encourage the injection of money back to the country. Focus on the solution.