Economy post covid19

World Economy post covid19

Background

The pandemic began with the global health crisis and it will result in a recession world-wide. The crisis takes us back to the time when agriculture was a settled practice in the northern part of the Fertile Crescent (South-east Turkey) some 11,000 years ago and then to Asia and America. The era where livestock and domestication of animals enabled society to develop while many practices and technological innovations contributed to development thereafter. The time when people were very limited to their economic activities; perhaps it had its limitations. However, the concept of the "global economy" was nowhere.

Silk route is known as an ancient trade route

The world economy expanded with the increase of population and trade between Asia and Europe through the silk route. India and China played a significant role in world trade during the time.

Causes

Once Economist and the former prime minister of India Dr. Manmohan Singh had stated that; “I would be the first person to admit that we could have done more.”

Good environmental policy is a good economic policy

The virus is more contagious and poses an unprecedented threat to public health and the global economy. African nations came out from a deadly and contagious Ebola virus recently. Many South Asian and African economies were not ready to face the pandemic anyhow because of their existing social and economic issues and lack of health infrastructure. The universal social and economic indicators of these nations indicate. Their prominent factors of minimal performance in indices include, unable to convert their income into functionality, Unequal distribution of income, Corruption, and poverty.

The international indices indicate poor performance of these nations year after year. As per the latest World Bank data (2015), 10% of the world population lives on less than $1, 90 and 46% population survives on less than $05, 50 a day. Meanwhile, The preparedness of other nations was not at par. The developing nations did not focus on healthcare. The GDP expenditure on healthcare fo India is minimal at 1.28 percent. While in Norway it is 10 percent, and in the USA, Germany, France it is between 15-17 percent.

Impact

However, due to Covid19, the world economies are fragile and in a tight corner. And it will have a disproportionate impact on the poor through Job loss (Primarily for Informal sector), Price rise, and disruption in educational and health services.

Informal sector daily wage worker Asia

Impact of the pandemic on South Asian nations including India alongside Sub Saharan African nation will have a vulnerable experience, where the extremely poor population of the world exists. Except for a few, these nations are not self-sufficient in food demands of its population and are dependent on other countries. The need of the hour is to work together for the welfare of vulnerable populations across the world.

Way ahead

Global Co-operation

This pandemic is a once-in-a-century event and is different from other crises. This has pushed us a decade back, and to grow rapidly as an economy, our priorities should be on safeguarding the people’s health, protect them with food and financial security. Countries should come together with compassion and work on a plan to make a win-win situation for all. Alongside a lockdown, global supply chain and trade are being disrupted by some nations that can strike adversely to people.
Countries should work on embracing strong international cooperation with compassion and it is the only strategy available to them to protect its vulnerable population. Greater unpredictable and turbulent times for humanity lies ahead.