Post Corona Economy in Third World
Apocalypse Now! Here’s a quick fact. No matter what future holds in the pocket for the world in the coming year one thing is for sure. This pandemic will affect the economy big & wide. And like every other Global Phenomenon happening now and then, developing countries struggling to get their roots in world economic fields will get the Major hit.
Its been more than a month since the global lockdown started. Effecting Big companies and local businesses equally. With lockdown still in effect most Economic Pundits have already raised red flags for regions like South Asia for a rock bottom ahead. As of 12 April, World Bank reports on South Asia show a drastic fall of the region’s GDP growth from 6.3 to between 1.8–2.8 percent only, which is worst we have seen in forty years. Such falls will push countries under the more and more external loans with very little investment into the developing sector which Is already on a ventilator.
Post Corona scenario
Now as many countries have lifted much of lockdown just as a way to ease the already falling economy and also helping people to earn a livelihood. As we know even if lockdown is lifted wholly still the fear of virus won’t cease to exist that easy. So, trade and other activities will still require a boost in some way to urge people to go back to routine.
Some of following steps might help in a little push that will be required
Easing policies by central banks
Almost all the countries around the globe are easing their central bank policies lifting off a huge chunk of taxes on online transactions to help the economy keep moving as the flow of cash needs to be carried on. In Asia Pakistan where almost 15% taxes were implied on the different transactions are now lifted, if not all, most of them.
“This is the first time an emerging market is doing quantitative easing in the context of a crisis,we are looking to see how that turns out.”
said Ricardo Hausmann, Venezuela’s minister of planning in the 1990s and economics professor at Harvard’s Kennedy School of Government.
No need to panic and raise drawbridge
Policies of export control, retrenchment, and protectionism can yield high political popularity results for governments in times of crisis but these self-defeating policies come with the side effects of unnecessary raised costs and deepen shutdown and lengthen recovery.
Smart investments and intergovernmental collaborations
These crises can actually be hailed as a chance to revisit our policies and make amendments where ever required. Governments can start investing in long term developmental programs which not only help the economy to recover from the crisis but also help it to grow exponentially in developmental prospect. Intergovernmental bodies can help through emergency sharing of resources and yield the best possible outcome through shared interests.
If handled right these crises can be proved as milestones for growing economies in the long-term as the pandemic shook the giants of the world right down to their foundation, so in another world, this can also be used can square one block where the competition can get a fresh start. IF not, more than any other these third world countries will find themselves in quagmires of worst economic crisis from where, GOD FORBID, if not impossible, still will be a hell of a task.