All support measures must be consistent with long-term economic priorities. GCC governments can achieve this by attaching conditions that secure employment and social protection, lead to higher output, prepare for economic recovery, and promote long-established goals of innovation and resilience. Assistance packages should avoid unproductive subsidies that have limited impact on GDP or employment; that help uncompetitive sectors and traditional business models, such as those likely to be replaced in the near future; or that will be difficult to reverse.
Support to businesses should be tailored and channeled in a flexible and agile manner. For example, governments can streamline procurement to accelerate the mobilization of demand and resources that will help businesses. They can help businesses through the uncertain climate by providing them with business advisory services. Governments can also ensure that existing development funds and authorities change their processes to respond with assistance based on “business recovery plans” submitted by medium-sized and large businesses.
The demand for “business recovery plans” is critical if GCC governments are to maximize value for money and maintain momentum toward broader national development goals. There should be a checklist that asks about the type and degree of government support required; how the support will be used; the action plan the business will pursue for its main line of activity or service; planned recovery measures; and details of any other form of non-financial support that may be required.