Reviving the Economy in the Time of Global Crisis!

As various countries contemplate how to revive the global economy during the pandemic, it’s important to remember that we are in this together. The coronavirus pandemic and national lockdown decision have brought the economy to a standstill. Especially the challenging time poses a major threat to India with a huge population close to 1.38 billion.

Countries across the world have now implemented stringent policies to slow the spread of COVID-19 in communities, including closing schools, workplaces, and enforcing physical distancing. In abroad the governments are implementing the “fiscal monetary policy” where the government is influencing macroeconomic productivity levels by increasing or decreasing the taxpayer's levels and public spending strategies.

But in developing countries such as India, or countries of the African continent like Kenya with a huge population it becomes hard to implement fiscal monetary policy. We are already seeing the immediate effects created in responses to COVID-19. India’s attempt to impose a sudden lockdown is leading to undesirable consequences, mainly linked to mass impoverishment and migration. Similarly in Kenya, where informal labourers account for 83.6 percent of the total workforce, the business has started to suffer and dry up. The government is facing the COVID-19 crisis with its economy already under severe stress.

But the crisis has its own set of challenges, but it also comes with substantial opportunities too. It is helping countries to move forward towards developing universal healthcare facilities, to ensure public funds are tracked properly, pushing the limits beyond to ensure availability of resources for humankind and the importance of health care professionals who are at the frontline of the war against this virus.

Irrespective of major threats and limited resources India is battling the crisis with a bold approach. From early detection to geographical sanitization of each area, allocation of resources, and detention of migrant workers, to providing constant support to health care professionals India is trying its best to combat the crisis. It is not an easy task to fight a virus and at the same time to maintain the economic stability of a country with such a vast population but India has shown courage, stringent policies, and sensibility to mitigate the risk of the situation. The pandemic has also accelerated political leadership across the globe to seek cooperation from one another in such times.

However various media houses and economists have criticised the central government in the implementation of economic policies especially for the labour class who depend on daily wages. A more deeply rooted social contract is expected between the central government and states considering the inclusion of all classes.

So in the wake of this global pandemic, the need for the hour is to remain focused and look for more clarifying forward looking policies that not only provide solutions for the current pandemic but prepare each country for the future. We need comprehensive policies with stronger safety nets that tackle social, financial, psychological afflictions brought upon by such pandemics.