COVID-19 has changed the way the whole world lives and survives. Its lasting impact will be felt for the long term as the world shifts gears into a new way of living forever. The global economy had shrunk to considerable levels due to the coronavirus pandemic. With habits and livelihoods changing, every industry is compelled to adapt to new modes of service in order to sustain itself, either through online orders, delivery or pick up facilities and more. This generation is witnessing an unprecedented and significant change that could pave the way forward for the next generations.
COVID-19: The Challenge to World Economy
Coronavirus disease 2019 ( COVID-19), caused by SARS- COV2, is of unprecedented global public health concern. To combat the disease, on March 11 2020, the World Health Organization (WHO)characterized Covid 19 as a pandemic, pointing to over 3 million cases and 207,973 deaths in 213 countries and territories. The infection has not only become a public health crisis but also affected the social and global economy. Significant economic impact has occurred across the globe due to reduced productivity, loss of life, business closure, trade disruption and decimation of the tourism industry.
The Covid 19 pandemic has resulted in severe economic and social impacts around the world. Young people are particularly vulnerable to the disruptions the pandemic has caused and many are now at risk of being left behind in education, economic opportunities, health and well being during a crucial stage of Their life development. Young people are more likely to be unemployed on precarious job contacts and working arrangements, and thus lack adequate social protection. It has also severely affected the global economy and financial markets. Significant reductions in income, a rise in unemployment, and disruptions in the transportation service and manufacturing industries are among the consequences of the disease mitigation measures that have been implemented in many countries. It has been clear that most governments in the world underestimated the risks of Covid 19 spread and were mostly reactive in their crisis response.
In an attempt to understand the turmoil effect on the world economy which includes industries involved in the extraction of raw materials, the secondary sector involves the production of finished products and the tertiary sector includes all service provision industries.The resilience of the agricultural sector has been tested by the COVID-19 outbreak. A global crash in demand from hotels and restaurants has seen the price of agricultural commodities drop by 20%. Counties around the world have imposed a number of proactive measures to contain exponential increasing spread. A survey conducted by the British Plastics Federation (BPF) explored how COVID-19 is impacting manufacturing business in the United Kingdom, Chemical industry is predicted to reduce its global production by 1.2%, the worst growth for the sector since the 2008 financial crash. Major chemical manufacturing companies such as BASF who were in process of upscaling productions in China have had to delay their activities, contributing to a slowdown in predicted growth. COVID-19 has affected all levels of the education sector, from preschool to tertiary education. Different countries have introduced various policies, ranging from complete closure in German and Italy to targeted closure in the United Kingdom for all but the children and workers in key industries. Additionally, over 100 countries have imposed a nationwide closure of educational facilities UNESCO estimates that close to 900 million learners have been affected by the closure of educational institutions.
It is now well understood that Covid 19 is much more than a crisis in global health. Since its emergence in early 2020, the pandemic has plunged many economies into recession disrupted, most activities, and wrought havoc with people’s lives. This pandemic has led to a dramatic loss of human life worldwide and presents an unprecedented challenge to the public health, food systems and the world of work. The economic and social disruption caused by the pandemic is devastating; tens of millions of people currently estimated at nearly 690 million could increase by up to 132 millions by the end of the year.
Immediate and purposeful action to save lives and livelihoods should include extending social protection towards universal health coverage and income support for those most affected. These include workers in the informal economy and in poorly protected and low-paid jobs, including youth, old workers and migrants. There is still a question as to whether the unfolding crisis will have a lasting structural impact on the global economy or long – term financial and economic consequences. In either case, it is evident that communicable diseases such as Covid 19 have the potential to inflict severe economic and financial costs on regional and global economics. As outbreak of novel infections are not likely to disappear in the near future, proactive international actions are required not only to save lives but also to protect economic prosperity.
Now is the time for global solidarity and support, especially with the most vulnerable in our societies, particularly in the emerging and developing world. Only together can we overcome the intertwined health, social and economic impacts of the pandemic and prevent its escalation into a protracted humanitarian and food security catastrophe, with the potential loss of already achieved development gains. We must recognize this opportunity to build back better, as noted in the Policy Brief issued by the United Nations Secretary-general. We are committed to pooling our expertise and experience to support countries in the crisis response measures and efforts to achieve the Sustainable Development Goals. We need to develop long-time sustainable strategies to address the challenges facing the health and agri-food sectors. Priority should be given to addressing underlying food security and malnutrition challenges, tackling rural poverty, in particular through more and better jobs in the economy, extending social protection to all, facilitating safe migration pathways and promoting formalization of the informal economy.
We must rethink the future of our environment and tackle climate change and environmental degradation with ambition and urgency. Only then can we protect the health, livelihoods, food security and nutrition of people and ensure that our ‘ new normal’ is a better one.
The attempt to understand and follow the norms is a way to normalise our lives keeping in consideration that COVID-19 is still a threat to our lives. Everyone one should equally contribute in rebuilding the national stability and strengthening both the social and economic life of the people.
Degree of Thought is a weekly community column initiated by Tetso College in partnership with The Morung Express. Degree of Thought will delve into the social, cultural, political and educational issues around us. The views expressed here do not reflect the opinion of the institution. Tetso College is a NAAC Accredited UGC recognised Commerce and Arts College. The editors are Dr Hewasa Lorin, Dr. Aniruddha Babar, Aienla A, Rinsit B Sareo, Meren Lemtur and Kvulo Lorin.
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