COVID-19 has had a profound impact on the global economy and financial markets, in addition to being a global pandemic and public health problem. The disease control policies that have been introduced in many countries have resulted in significant wage declines, increased unemployment, and disruption in the transportation, service, and manufacturing sectors, to name a few.
The virus has not only been a public health emergency, but it has also had an economic impact on the world. Reduced productivity, loss of life, business closures, trade disruption, and the annihilation of the tourism industry have
all had significant economic consequences around the world.
The economic impact of the pandemic has been heterogeneous across the countries’ income distribution, in addition to marked health disparities, particularly in countries without universal healthcare coverage. It has been apparent as the health and human toll surged, and it proved to be the world’s greatest economic shock in decades.
The pandemic has caused and will continue to cause substantial damage to humanity. Unprecedented progress in global health over the last 20 years has halted, and economic growth has already plummeted, resulting in a global recession the likes of which we haven’t seen since World War II.
Deep recessions caused by the pandemic are projected to leave long-term scars leading to decreased investment, human capital
erosion related to lost jobs and education, and disruption of global trade and supply chains.
The pace at which the crisis has engulfed the global economy may provide insight into the depth of the recession. The rapid pace of global growth forecast downgrades suggests that more downward revisions are possible, as well as the need for additional policy intervention by policymakers in the coming months to support economic activity.
Despite the previous certainty that the threats of the present and future — the climate, rising inequality, and extremism — necessitated massive international coordination, all remained the same, with populist and incompetent leadership exacerbating nationalist feelings about the planetary common good.
Most governments around the world underestimated the risks of rapid COVID-19 spread and have been particularly disruptive in their crisis response. Since disease outbreaks are unlikely to go away real soon, multilateral action is needed to save lives while also safeguarding economic prosperity.
COVID-19 may be a “wake-up” call for world leaders to come together in facing the global challenges.
Health Crisis, New World Order and Global Shifts; What is the need of the hour?
New World Order or not; some things needs to be changed.
The world after COVID-19 is unlikely to be the same as it was before. The effect of the pandemic is exacerbating many trends already underway in the global economy. Choices made during crises, as history has proven, will affect the world for decades. The need for collective action to create economies that produce sustainable economic development, stability, and protection for everyone will remain crucial.
The acknowledgement that the old order will not be restored and that any attempts to do so will be futile. If we accept this, then this tragic virus may force us to address the planet’s lack of a sense of community. Depending on the decisions taken in the coming days and months, it may be the midwife of better global and local systems that emerge stronger to face the challenges.
Decisions taken now would have far-reaching consequences. In order to offer equal consideration to the needs and rights of the two-thirds of the world’s population who live in the Global South, power imbalances in global institutions must be reversed.
The crisis emphasizes the need for immediate action to mitigate the pandemic’s health and economic effects, protect vulnerable communities, and pave the way for a long-term recovery. Strengthening public health systems, addressing the challenges raised by informality, and drafting legislation are essential for emerging market and developing countries, many of which face challenging vulnerabilities.
The greatest chance of achieving public health strategies and facilitating a robust global recovery is through global collaboration and cooperation—both of the steps required to diminish the pandemic’s effect and economic efforts are needed to alleviate the economic harm, including international funding.
SHARAN BURROW, general secretary of the International Trade Union Confederation, reflects:
Our goal for recovery should be full employment and a new social contract. Public investment in the care economy, education, and low-carbon infrastructure can form the backbone of stimulus that reduces inequality. Wage policy, collective bargaining, and labour market regulation can revive demand and income while putting an end to a business model that allows companies to take no responsibility for their workers.
Debt should be addressed through a relief process focused on the United Nations Sustainable Development Goals and enduring economic growth for every country. Shortsighted fiscal consolidation hindered debt management and reduction after the global financial crisis and would again leave us even less able to deal with future health and economic crises.
Shared prosperity can be the fruit of a COVID-19 world marked by shared ambition and global solidarity.
What will the world look like after COVID-19? Many of the issues we will face in the next ten years will simply be more severe versions of those we already face. Only if we plan to take steps to address these issues and bring about systemic change, can the world look radically different this time.
The most critical takeaway from the COVID-19 pandemic is the importance of collaborating on issues that concern the entire mankind.
We are much stronger united than divided.
A shared future is not only preferable to a lonely one when making future decisions; it also implies that there is no future if it is not shared.
Read how six prominent thinkers reflect on how the pandemic has changed the world: https://www.imf.org/external/pubs/ft/fandd/2020/06/how-will-the-world-be-different-after-COVID-19.htm
Read the author’s take on the loss of human essentials due to COVID-19: https://theuncoiled.com/2020/12/19/covid-19-and-the-lost-human-essential/