It means reconfiguring economy and business models, says PwC CEO
“In Cyprus as we repair the damage caused by this crisis we also need to rethink and transform our economy and business models so as to be fit for the future. This is not the time for quick and easy solutions,” warns Evgenios Evgeniou, CEO of PwC Cyprus.
PwC Cyprus has laid out ambitious and detailed lines for such a reconfiguration in its December 2020 report, Restart Cyprus: Now. It is worth mentioning that the study was introduced by Sir Christopher Pissarides, Nobel Laureate for Economics who also contributed to its drafting.
In an interview with the Cyprus Mail, Evgeniou insists that we need to recognise the necessary changes going forward.
“This is particularly important given that the future evolution of our economy is uncertain, depending on the timing of rollout of the vaccines, and the emergence of the country from pandemic restrictions,” he says.
“This is the time to transform the Cyprus economy to be fit for the 21st century, in line with the priorities set by the EU especially as regards to a Digital and Green economy. The key to achieving this is a common vision, a collective effort and an action plan embraced by all the stakeholders and implemented on the basis of effective cooperation between the public and private sectors.”
The healthcare sector, for example, needs to be viewed in a broader context, Evgeniou points out. “Social determinants such as education, mental health, income, nutrition, lifestyle and housing all have a major impact on health outcomes. These concepts are ‘soft,’ but are in fact critical to have a healthy population.”
Evgeniou points to a recent PwC HRI study, showing how extended care teams that include nutritionists and social and community health workers could save the system $1.2 million for every 10,000 patients served (PwC HRI, ROI for primary care: Building the dream team, Oct 2016).
“Then, healthcare management should be based on actual conditions, on what is happening on the ground. For this, you need data analytics and the correlated technology to drive efficiency and effectiveness.”
A more sustainable business model for real estate
“The evolution of real estate should be more closely linked to social trends,” Evgeniou continues.
“Demographic trends in Cyprus indicate an increase in senior citizens, and an increase in youth. This trend goes in step with the requirement for environmentally friendly buildings.”
For the real estate sector, this means that projects for the regeneration of city centres, and increased affordable housing, should be part of the reconfiguration of the real estate sector, Evgeniou notes.
“Another part should be dedicated to the adoption of planning incentives to encourage the development of specialised Elderly Housing and Assisted Living communities and the introduction of tax incentives to induce private sector initiatives in this direction. This will allow the elderly to live those extra years in comfort.”
All these proposals address the sustainability of the real estate sector more broadly, but also, in the context of sustainability, address the issues of social cohesion, Evgeniou observes.
Education should address the actual needs of our society
“Social cohesion and social resilience are a key factor in considering the reconsideration of our education system,” Evgeniou continues.
“Education reform is key in order to narrow the gap between what our education system provides and actual needs of our society. To this end, the state needs to invest in the country’s entire education system and especially at a digital level, in order to modernise and revamp teaching methods and improve quality. The new standards will need to be designed with the help of a wide range of stakeholders. Even though this will be a demanding and lengthy process, it is a necessary step to achieve substantial change and high-quality education.”
To this end it is essential to assure social cohesion and social resilience with healthcare policy oriented to the issues of prevention and improved management, with education that allows graduates to compete in 21st century, with a housing policy correlative to social trends.
“And if you have a workable transport policy, etc. then you can address the trend of inequality that is recognised by most people today as disruptive,” he says.
“In Cyprus, we are in a good place in that regard, but we should not miss this opportunity to address all these issues earlier rather than later.”
Importance of public-private partnership
All of these proposals depend, to a great extent, on cooperation between the public and private sector, as the study shows.
“In the context of the financial crisis of 2008 to 2009, as well as in the current pandemic crisis today, it is absolutely necessary to have an effective – and I stress the word ‘effective’ – public sector,” says Evgeniou.
In the report, the authors make recommendations about improving the public administration, they make proposals about the talent management and human resource management within the public sector, as well as the introduction of e-government. But the report makes clear that neither the public sector nor the private sector can achieve anything on its own; there needs to be cooperation between the two.
Says Evgeniou: “Again, I think that in Cyprus, we are in a better place than many other countries, there is a good exchange of ideas between public and private sectors. One sees this in the exchange of views at the Chamber of Commerce, at the OEB, also between the trade unions and the government.
But he says that an agreed plan of action is necessary.
“The proposals we make in the report can only be implemented if the stakeholders agree that this is what we have to do. There may be shades in terms of importance, and there may be shades in terms of implementation, but if we agree on a plan of action, the size of the country means that we can go ahead and implement it.”
Evgeniou admits that this may sound optimistic in today’s conditions, but he believes that if we have a common vision and an action plan, we can go ahead and implement it.
Would this mean creating a long-term plan for the future like the UAE’s Abu Dhabi Economic Vision 2030?
“Why not? As PwC, we have won an assignment from the EU working closely with the Cyprus Economic and Competitiveness Council to work on a long-term strategy to put the economy on a more sustainable basis.
“So why not have such a plan? And I think the EU recovery plan which puts money on the table for the digital and the green agendas makes that even more realistic in terms of the way forward. We can make a more ambitious plan, designed according to all the needs of society today, and we can make it happen.”
