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The Coronavirus Economy

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Perhaps the only thing we know for sure now is that nobody knows what is coming.

Never before have we seen the wheels of the economy grind so comprehensively to a halt. The first working day after the lockdown in Sindh saw an announcement of a Rs1.25 trillion stimulus package for the economy, which makes it the largest such package ever announced in the country’s history.

The day before, the army spokesman — Lt. Gen Iftikhar Babar — described the virus as “the most serious threat we have faced in living memory.” The same day as the stimulus was unveiled, the State Bank announced a 1.5 percentage point cut in interest rates in an extraordinary monetary policy statement that was hastily organised out of schedule.

As the fear of Covid-19 shuts down the world on a scale unprecedented in modern times, Pakistan’s economy — already reeling from a crippling recession — faces a near-existential threat. What could be the contours of the even more difficult days ahead?

Nobody in the business and industrial community can remember a time like this. Not the sanctions following the nuclear detonations of 1998, or the earthquake of 2005 or the Great Financial Crisis of 2008 or the floods of 2010 carry many lessons to help us see and prepare for what might be coming. Key centres of decision-making in the federal and provincial government have an idea of what is coming — a tsunami of critically ill people landing up in public hospitals — but there are few models or projections to help us understand how far this will go.

The public health emergency that is brewing around the country is one thing. The lockdowns and the enormous cost that they will exact is another. Of course, there is no trade-off here, in the sense that we are not choosing between protecting lives or livelihoods. The two are linked and a pandemic is harder to control once it has crossed a certain threshold. Whatever their cost, the lockdowns are necessary to ensure that this public health emergency does not turn into an outright catastrophe.

THE COMING STORM

Between the lockdowns and the pandemic, where is the economy — already reeling from a recession — headed? At the epicentre of the coming storm will be the sheer number of critically ill people who will need varying levels of care, from quarantine to hospitalisation to intensive care. Though they are not making these numbers public, according to some sources within the decision-making centres, the provincial governments in Sindh and Punjab seem to be preparing to meet the needs of up to 80,000 such patients between four to eight weeks on. Whether they see this as the peak is not yet known.

A stockbroker wearing a mask speaks on his cellphone as he watches share prices on a screen at the Pakistan Stock Exchange in Karachi | Asif Hassan, AFP
A stockbroker wearing a mask speaks on his cellphone as he watches share prices on a screen at the Pakistan Stock Exchange in Karachi | Asif Hassan, AFP

Further out there will be the needs of the poor, or those who live just at or below the subsistence line in Pakistan. There are close to five million people identified in this group, whose particulars are available in the so-called National Socioeconomic Registry (NSER), which is the database that was the centre of the Benazir Income Support Programme.

After them there is the class of daily wagers. These are the mass of largely unskilled or low-skilled people who work in industry, services and agriculture, and rely on daily wages to meet their needs. Karachi industry circles estimate that up to four million daily wagers work in Karachi alone, whereas the government of Punjab is working with estimates of up to four million in the whole province. These people are most likely not part of the NSER database and do not show up in any formal sector employee or payrolls data either. These are some of the neediest people in times of lockdowns, yet they pose a big challenge when building a social protection programme for their income support needs because they are very difficult to locate.

In the stimulus package Rs50bn has been included specifically for this purpose, which is expenditure on top of what the provincial governments are already spending for the fight. Then comes the cost of income support and ration packs that have to be provided to the vulnerable sections, from the poor to the daily wagers and the unemployed. Even assuming Rs500 per day as the basic requirement for a household of 7, with 10 million deserving households, this means Rs5bn per day, or Rs150bn per month.

After them come the unemployed. These will include skilled workers, even lower management who might look like they live well (they will have an apartment and own a car), but have very little capacity to weather a few months without a paycheque.

These are some of the class of people who will also need help, to varying degrees, if the lockdowns are to persist for two months or more. If one looks only at the bottom two quintiles of our income population, there are close to 84 million people, living in 11 million households, according to some estimates. How many of these should the state have to look out for in the event of a prolonged lockdown?

Daily wagers are already feeling the impact of the lockdowns | M Arif, White Star
Daily wagers are already feeling the impact of the lockdowns

Nobody knows how this ends. Will we succeed in defeating the virus, or will it simply work its way through the population and die or mutate into some less lethal form of its own accord? Will the summer temperatures impair its ability to transmit itself from one person to the next, to the point where it can no longer survive? Will a vaccine or a cure be found sooner than we think? Will cheap testing kits be developed soon enough that significantly boost our ability to fight this menace? Will there be a second, possibly third wave of infections like there was with the Spanish flu of 1918?

Nobody knows yet. But this analysis is based on the assumption that we are entering an intense and prolonged fight.

AN UNPRECEDENTED BLOW TO THE ECONOMY

If we are now in a prolonged fight, with no clear idea of how far we may have to lockdown the population to deny the virus any avenues for transmission, while we treat each infected person back to health, then the economy could end up taking a hit the likes of which it has never been called upon to take in the past. How might that work out?

Consider the question step by step.

First up is the direct cost of the treatment of the sick and protection of the frontline caregivers. In the stimulus package Rs50bn has been included specifically for this purpose, which is expenditure on top of what the provincial governments are already spending for the fight. Then comes the cost of income support and ration packs that have to be provided to the vulnerable sections, from the poor to the daily wagers and the unemployed. Even assuming Rs500 per day as the basic requirement for a household of 7, with 10 million deserving households, this means Rs5bn per day, or Rs150bn per month.

This is a lot of money, but it is still manageable for the state considering this is an emergency. The bigger challenge is developing the targeting technology to ensure that the right people are receiving these funds. At least three provinces have a team working on finding a way to do precisely this.

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This may be the most urgent task before the state but it is far from the most expensive. If the total size of the stimulus package at Rs1.25 trillion is an indication, the government is gearing up for a very costly battle indeed. Costly enough to put an end altogether to the macroeconomic stabilisation that has been underway since July. The fight, it seems, will require us to spend all the fiscal buffers that have been built with so much pain and sacrifice over the past year.

Beyond the people, the state is now fielding increasingly restive voices from industry. Already reeling under crippling interest rates and collapsing demand, business enterprises that had seen their profits disappear since the adjustment began, now face the prospect of a mortal blow.

‘ESSENTIAL’ SERVICES

The biggest and most immediate impact of the lockdown is the halt in business operations. Out of 2,700 factories in Karachi SITE area — Pakistan’s largest industrial zone which accounts for almost 30 percent of the country’s exports according to the zone’s leadership — less than 50 were still operating on the first working day after the lockdown was announced. Those 50 were among the few that were considered essential services, primarily food and pharmaceuticals. All the rest were shut, with the workers sent home.

The port was still running but movement of cargo into and out of the gate was impaired because goods transporters could not be on the roads. Ships were berthed and dredging activity went on as normal. Containers were loaded and off-loaded, and customs processed Goods Declaration forms through the online system without requiring any physical presence, much to the relief of clearing agents. But labour was thin because many of them were stopped on their way to work and had a hard time explaining to the authorities that they were employees in an “essential services” industry. Trucks entering the province from upcountry were stopped at the provincial border, where a growing line waited for clearance to move, but nobody knew how to get this clearance and from whom.

How could law enforcement personnel determine which truck was carrying goods belonging to an “essential service” and which one is not? Is packaging material an “essential item”? What if it is necessary to package a food item in, such as ghee or edible oil?

The biggest and most immediate impact of the lockdown is the halt in business operations. Out of 2,700 factories in Karachi SITE area, less than 50 were still operating on the first working day after the lockdown was announced.

If the lockdowns are prolonged, the state will come under increasing pressure as more and more industries seek to have themselves declared as “essential services”. If food and pharmaceuticals are essential, then so are their vendors and suppliers of critical components and transporters. If a pharmaceutical firm needs to replace a spare part in a machine, then is transporting that spare part from one part of the country to another through a lockdown to be considered an “essential service” or not? How about manufacture or supply of that spare part?

Others will step forward saying that they may not be in the food or medicine business, but their products are essential in other ways.

All this happened on the first working day after the lockdown was announced. Soap manufacturers, for instance, demanded they should be counted under essential services since washing of hands on a regular basis was an essential part of the fight against the virus. What will people wash their hands with once the supplies of soap in the market run out?

Edible oil manufacturers found that, though they had permission to continue their operation, there was one vendor who supplied packaging material to them all, whose product was essential to their operation. Sure enough, that vendor also applied to the provincial government for permission to continue operations.

Textile exporters said they had orders in the pipeline which would be cancelled if delivery were not made, and valuable foreign exchange would be foregone for the country, so the federal government weighed in on the provincial chief minister to allow these exporters to complete their orders. Permission was granted.

But where does this loop end? Some argued that producing sheets for hospitals was an essential service. Others said supplying yarn and sizing services to a hospital bedsheet provider is an essential service. The fact is that, in a modern economy, even if it is as rudimentary as Pakistan’s, carving out some sectors for continuity of operations while shutting down others is simply not possible for a long period of time. Food can be described as an essential service and agriculture will be allowed to continue. But what about fertiliser distribution or pesticides?

DEALING WITH THE LOSSES

Another faultline will open once the question of absorbing the losses arising from the lockdowns has to be faced. Industry is already demanding support in return for their compliance with the lockdown terms, which include a provision that no lay-offs will be effected during this period. With the passage of time massive losses will accumulate in the form of deficits with the state, cash flows drying up with private business, and mounting requests for deferred payments and perhaps a moratorium on debt servicing on the banks.

These losses will trigger a contest where the three main constituents of our political economy — the state, big business and the citizenry — will vie to push the cost on to each other. Each will mobilise their narratives. The state will say “we are fighting the virus.” Industry will say “we are running our payrolls even though our plants are shut.” The exporters will add “we are bringing in valuable foreign exchange” — an argument that will ring all the louder because other inflows would have suffered and foreign debt servicing will remain in place.

There is one group that will come to this contest without a story, without a narrative of their own, and for this reason they will be vulnerable. That group is the banks. There is little to no public service function that creditors can claim they are performing, while their borrowers will loudly remind everyone that the banks made money all last year as the economy sank and manufacturers were weighed down by crippling interest payments as the State Bank hiked rates. They will point out that the banks made windfall profits even as the state and private manufacturers found their interest expenditure skyrocketing.

“You have made your money,” they will tell the banks, “even as we bled. Now it is time to give back because the country faces an emergency.” The banks will see mounting calls for deferments of debt service payments, some of which have already begun.

In the stimulus package announced by the Prime Minister on Tuesday, one of the promises was to arrange deferred debt service payments for manufacturers. It is not clear how the state intends to arrange for this, but in some measure, the contest has begun already.

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CONTESTING NARRATIVES

In the months to come, this contest will escalate and the frenzied search for the resources with which to pay for the fight, as well as the expenses of carrying the people through it, will fuel a political economy that will consume increasing amounts of the state’s energy. With industry in lockdown, power consumption will fall dramatically, and as power capacity sits idle, some will wonder why the state should continue to pay capacity charges.

“Yes, it is in their contracts,” they will acknowledge. “But don’t these private power producers know that the country is faced with an emergency and needs every penny of its resources for the fight?” The stock market will continue its fall and brokers might try to mount an effort for another bailout, like they did last summer. It would be catastrophic if in the midst of this fight, the government were to acquiesce to their demand. Last summer, they acquiesced even though the state had begun its journey on a gruelling stabilisation effort that required massive sacrifice from the citizenry.

As the fight intensifies and the demand for resources rises, this contest might start to loosen some of the moorings of our financial system that have been held in place with iron bolts for decades. No government has asked for a moratorium on its domestic debt service obligations thus far, for example. But this time the government might ask for exactly that, for example, on the penalty interest charges on the circular debt or some other. The option to print money to pay its bills is always available for a government when dealing with local currency debt, but there are reasons why they might seek to shake down their creditors first before resorting to printing of money, if the need for resources intensifies.

This loosening has also already begun, with the extraordinary monetary policy statement announcing a rate cut of 1.5 percent on the first working day of the lockdown. I cannot remember the last time such an event occurred. The fact that it happened only days after the State Bank had already announced its monetary policy — in which steadfastly it refused to deviate from the orthodoxy of the textbook and did not lower interest rates even though inflation was falling, and the virus threat had already landed on Pakistan’s soil — only shows that serious arm twisting has already begun. More arms stand to be twisted because creditors’ interests are usually the first to be tossed overboard when the ship of state hits an iceberg or is attacked by pirates.

FEDERATION FAULTLINES

There is another faultline that may also get activated as this contest gets underway. This is the faultline within the state. The centre has already asked the provinces to bear some of the burden for the enhancements in the spending on BISP, whose beneficiaries will now receive an additional Rs1000 for the next four months as part of their entitlement. But the provinces are building their own social protection programmes and will seek a burden sharing with the centre themselves. Most likely they will arrive at an arrangement, since there is very little appetite for a fight among the elites who run the federal and provincial governments.

But provincial governments, that are also likely to feel the thirst for resources to wage the fight, cannot print money or seek any renegotiation with their creditors. They might seek an adjustment in the surpluses they are obliged to run under the National Finance Commission award. If so, this could end up meaning a significant renegotiation of the Fund programme, which is coming up for review in the next International Monetary Fund (IMF) board meeting in early April.

The timing is also critical in all this. If the fight peaks around mid- to late April, as the provincial governments expect, then the budget will be made in its aftermath. The aftermath is also likely to bring a severe recession, a scarred populace with no further appetite for absorbing economic pain for stabilisation, and continued requirements to spend in order to jump-start a traumatised economy.

Somewhere along this timeline, the government is likely to ask the IMF for a renegotiation of many of the terms of the programme. It will need to print money in massive quantities, break its budget deficit ceiling, slash interest rates and taxes.

It is unlikely that the Fund will simply refuse, since it will be clear from the beginning that Pakistan has no choice but to undertake these severe actions. But it is equally unlikely that Pakistan will find the resources from abroad to stabilise its economy without pain. That is unless ‘friendly countries’ like China and Saudi Arabia once again come to the rescue. Such a rescue will be required at that point, but who has the appetite, and how far they are willing to underwrite Pakistan’s return to normalcy, will remain to be discovered. A lot will hang in the balance as that question is explored.

THE DAYS AHEAD

Unless the economy sees massive supply disruptions, enough to hit food shipments, it is likely that March and April will see price deflation much faster than expected. Inflation was already on a downward and accelerating trajectory but, with industry closed and private consumption focused primarily on essential items and healthcare expenditures, prices are likely to see a sharp fall. This will create the space for sharp interest rate cuts, as well as large printing of money if necessary to pay for the continuously rising bill that the fight will present.

The IMF will need to be persuaded that these steps are necessary, and if printing of money is going to destabilise prices once again, the leadership could make the decision that they will worry about retiring that overhang once the fight is over.

Nobody in the business and industrial community can remember a time like this. Not the sanctions following the nuclear detonations of 1998, or the earthquake of 2005 or the Great Financial Crisis of 2008 or the floods of 2010 carry many lessons to help us see and prepare for what might be coming.

An extraordinary moment has now opened up. Business as usual will not work. It will take every ounce of creative energy and close coordination to wage this fight. The government has missed its chance to contain the pathogen at an early stage, when it was pouring into the country through travellers arriving from foreign lands. It failed to wage a campaign of awareness about the dangers posed by the virus and how best the citizenry could protect itself. It then failed to take decisive steps to order social distancing and lockdowns when they were most called for.

The result was the second and third tiers of the state’s leadership had to take up the fight. The provincial chief ministers, chief justices of the Sindh and Islamabad High Courts, individual MNAs, the Special Assistant to the Prime Minister on Health and others worked in their respective domains to build some sort of a bulwark against the entry and spread of the virus. But now it is here, and it has spread, and a battle on a wide front has become inevitable. This battle will take resources, and the search for these resources will define a lot of the state’s behavior through it all.

Via_Dawn.com

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China

A Wary Chinese Dragon and a Reluctant Lebanese Government

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Since China’s historic “Belt and Road” initiative was announced in 2013, several countries in the region, including Iraq, Syria, and Lebanon, have raised the question of moving east in order to benefit from this massive initiative, which is expected to break the vicious cycle of crises that these countries have been mired in for decades.

The Chinese initiative aims to connect China to Europe by constructing billions of dollars of infrastructure along the Silk Road. Ports, highways, railroads, and industrial zones are all included in this initiative. More than 120 countries are involved in this massive Chinese project, which aims to increase China’s exports to the world’s major markets.

On December 31, 1955, China and Lebanon signed a trade agreement in order to develop the goodwill between the peoples of Lebanon and China via commercial relations and economic cooperation between their two nations, on the basis of equal and mutually beneficial advantages. China’s “Belt and Road” initiative, which aims to connect Asia, Europe, and Africa via land and sea trade routes, is based on the idea that these connections are mutually beneficial to all parties involved.

The initiative is based on open collaboration and does not engage in protectionism; is devoted to mutual benefit and win-win and does not engage in a zero-sum game; moreover it does not interfere with politics. It doesn’t create new laws; instead, abide with international conventions.

Agreements on “joint promotion” were signed by the Chinese government and the Lebanese government in September 2017 to promote cooperation in this area. According to the Memorandum of Understanding, both countries will work together in areas of mutual interest such as transportation and logistics; infrastructure development; investments in renewable energy; and cross-cultural exchange.

Prior to the signing of this Memorandum of Understanding, the two countries signed numerous agreements in various fields, including the Maritime Transport Agreement (1996), the Activation and Protection of Mutual Investments (1997), the Economic, Commercial and Technical Cooperation Agreements (1997-2016), the Civil Air Transport Agreement (1997), a cultural agreement (2002-2005), and several agreements in this field that resulted on December 2, 2019 in laying the foundation stone for this Memorandum of Understanding.

Despite the growing ties between Lebanon and China, the Lebanese have yet to make a decision on whether to move east, more specifically to China, or keep the strong ties and bonds with western governments, such as the US and France, for political reasons related to the sectarian system, as well as economic and commercial interests of some actors or parties active in these areas.

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When it comes to Lebanon’s relationship with China, some have shifted the focus from economics to politics, either by advocating a complete shift of the country’s economic focus from the United States to China, or by warning about the potential consequences of expanding relations with the Chinese side. In both circumstances, the connection shifts from national interests to ideological advantages. The Arab countries and Lebanon have never had an issue with China, neither in trade, culture, or politics; China has dozens of major projects in many Arab countries without these countries turning to the east or fearing any US encroachment.

China also contributes to the United Nations peacekeeping mission in Lebanon, in addition to its cultural, educational, and artistic agreements with Lebanon. We can see the positive return of the partnership with China in the tremendous progress in technological projects and infrastructure in Egypt, for example; or Algeria’s ports; Morocco’s industrial sector; Kuwait’s oil and communications industries; Saudi Arabia’s oil and communications industries; and the United Arab Emirates’ energy and agriculture industries.

“Sanctions were not threatened against Lebanon because of China’s growing trade ties with Lebanon, which amount to nearly $2 billion a year in exports to Lebanon compared to barely $60 million in industrial exports from Lebanon to China,” the American side said.

China is a powerhouse with the second-largest economy in the world, whereas Lebanon is a small nation with economic difficulties and a big trade imbalance. On the other hand, it is situated in a strategic location that allows it to serve as a gateway between the Middle East and Europe. So, there is the potential for significant economic and commercial entanglements between China and Lebanon, which might be beneficial to both nations.

More than ten billion dollars’ worth of development projects, including cleaning the Litani River and resolving the country’s electricity crisis were offered to Lebanon’s government by China. Other offers included getting China to participate in the oil and gas sector, turning Lebanon into a Chinese regional financial centre, and expanding the port at Tripoli. Because the United States has rejected any involvement for China in Lebanon, the Lebanese side was not enthusiastic about these initiatives.

Chinese ties with the Middle East are based on mutual benefit, common gain, cooperative growth and a win-win situation. China does not attempt to exert influence in the region. On the other hand, China’s new Ambassador to Lebanon, Qian Minjian, notes that Lebanon’s government and political parties have expressed a positive willingness to deepen practical cooperation with China within the Belt and Road Initiative framework; he stresses that the Chinese side always seeks to cooperate with Lebanon within the Belt and Road Initiative, with a commitment to do so.

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Chinese and Lebanese diplomatic relations began in 1971, but commercial ties between the two countries date back to 1955, when the first trade agreement was signed between them, noting that these relations date back more than two thousand years ago.

Those who downplay China’s global economic, technological, and financial influence in contrast to the growing American influence and refuse to support Lebanon’s expansion or deepening of its ties with China on this pretext do not provide clear or logical answers about international expectations that China will hold the top economic position in the world. China’s strategic Belt and Road Initiative will have drawn dozens of countries and thousands of globally successful institutions and companies by 2030, parallel to the success of the United States and its Western allies in preventing this project from launching and progressing despite the campaigns they launched to stop it. As a result, the media and propaganda are likely to disparage it and doubt its merits for the countries participating in it.

Lebanon failed to accept or consider the Chinese offers or projects presented to it. Based on its long and distinguished history of relations with China in the economic, commercial, cultural and technical fields, and in order to avoid repeating Iraq’s failed experience in repudiating a strategic partnership agreement with China under the influence of the US; therefore, the Lebanese government should be more aware in dealing with the Chinese in the future and not miss more opportunities.

When there are objections or reservations about the interests of monopolistic powers and activities or external political demands, especially American ones, this means more political and economic confusion in Lebanon and a waste of a historical opportunity that may not be repeated while Arab or foreign alternatives remain conditioned by suspicious political demands, in addition to its lack of transparency and waving a new colonial era as a matter of economics.

Via MD

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China-Russia Statement: A quest for diversity

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On February 4, on the sidelines of the opening ceremony of the Beijing 2022 Winter Olympic Games, Chinese President Xi Jinping and Russian President Vladimir Putin signed a Joint Statement on the International Relations Entering a New Era and the Global Sustainable Development. It is a rather lengthy document, outlining common approaches of China and Russia to some of the most fundamental issues of the modern world including regional and worldwide security, democracy and political inclusion, social justice and climate change, arms control and nuclear nonproliferation, national sovereignty and multilateralism. 

It is not surprising that this statement has received a lot of criticism coming from Western media. Beijing and Moscow have repeatedly been accused of forging an “alliance of autocracies” threatening the West. US and European journalists, experts and politicians argue the Chinese and Russian leaders demonstrated that they do not really care about human rights or democratic institutions, do not tolerate any dissenting views or political opposition and aim to maintain their legitimacy primarily on the basis of economic security and nationalistic pride. 

There is hardly anything new in these critical comments. However, the logic of Western opinion-makers deserves a closer look. 

First, by labeling the two countries “global autocracies” such opinions already reveal a superficial approach of their authors. China and Russia are two very different nations; each of the two has its unique political traditions and culture, each has its own approach to managing dissent and opposition, dealing with internet and social media, integrating ethnic and religious minorities. China and Russia are like a whale and an elephant, to put them into one basket of “global autocracies” is a very questionable and misleading generalization, to say the least. 

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Second, there is nothing in the joint statement that would give reasons to believe that China and Russia are eager to launch an ideological war against liberal Western democracies or to question the right of the West to stick to political systems that have evolved in Western countries over the last two or three centuries. The statement underscores only the obvious: No country, and no political party or movement has the ultimate answers to all the difficult questions of social development.

Therefore, there should be no hierarchy or subordination among states on the basis of how they organize their political and social lives. This, however, does not imply that there are no universal human rights, which all the states have to honor and protect. Such universal rights do exist, but they should be defined by the international community at large, not by a small group of countries proclaiming themselves as “model” democracies.

Third, China and Russia maintain that the main dividing line in modern politics is not the one between “democracies” and “autocracies,” as are often presented in the West, but rather between “order” and “disorder.” The key challenge of global politics today, as seen from Beijing and from Moscow, is about enhancing global governance within the increasingly heterogenic world. To meet this formidable challenge, the international community should regard and accept its growing diversity as an asset, not a liability. Politicians and state leaders should focus on inclusive, not exclusive, mechanisms regulating specific dimensions of global and regional economics and politics.

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This is why both China and Russia expressed their firm opposition to blocks and situational coalitions based on ideological principles and aimed at marginalizing, if not containing, other international players. This opposition relates not only to such defense alliances like NATO or AUKUS, but also to more amorphous structures like Quad.

Turning ideology into the main principle defining the emerging new world order would be a strategic mistake with long-term implications for all of us. If ideological divisions prevail, conquer the public and get reflected in national strategies and doctrines, these divisions will become a formidable obstacle on the way to uniting the humankind around common problems and common public goods. The weeds should be rooted out before they grow too high.   

Via GT

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Global Socio-Economic Impact of Covid-19

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The Pandemic originating from Wuhan China has enveloped the whole world and the catastrophe caused by covid-19 is beyond speculation.  Schools, Colleges, Universities and business are closed for an indefinite period and the World has gone into self-isolation while the countries imposed lockdown in the world in the severely hit areas to contain the outbreak at massive scale.

The pandemic has affected all the countries especially China, France, Italy, Germany, US, UK, Iran, Egypt and third world countries i.e Pakistan, India, Bangladesh, Sri Lanka and  Afghanistan and some African countries.

There are some countries which are severely impacted socially and economically while some countries have sustained moderate impact owing to taking timely preventive measures as per circulated guidelines of WHO and Local Health ministries of respective Countries.

With President Donald  Trump clipping the wings of  UN’s apex health body by cutting the financial support amid the Global Pandemic, the catastrophe is expected to go from bad to worse as WHO  will experience the funds’ shortage that will ultimately contribute to a deep humanitarian crisis. 

The world posts a bleak picture already as all business activities have been suspended, the markets have been closed for an indefinite period, the stock markets crashed and the unemployment ratio suddenly jumped to historical high due to covid-19 Pandemic. Even OPEC members have decided to cut the oil production given the pandemic situation. 

The Global economy has been severely impacted by the shocks of the deadly virus that prompted companies like Google, Yahoo, Microsoft, Face book, Twitter to ask their employees to work from home to avoid contracting  Covid-19.

All the industries have been impacted badly that include entertainment, Sports, food franchise has completely shutdown creating panicking situation all around as once busiest streets and markets have started presenting deserted look.

This global economic warrants that if the early remedy to cure covid-19 is not discovered, the future will be dreadful to predict. The mighty economies such as China, the US, France, Italy, UK, Germany has been seriously impacted by this deadly virus. The situation is haunting the people around the world, bringing misery of greater proportion as compared to Word War II, Ebola, SARS, MERS, Plage and Yaws.

The Daily Wage workers, Private workers, drivers, hawkers, shop keepers and thousands of similar workers have lost their jobs and the opportunity to earn their livelihood. The companies have preferred work from home option for their employees to limit the outbreak and avoid contracting covid-19.

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It is alarming that hundreds of workers have filed as unemployed. The lengthy lockdowns have created serious humanitarian and economic crises and the experts are of the view that the circumstances are fast moving towards the global recessions and may take a long time to recover from this catastrophe.

Though China has been able to contain Covid-19 and even lifted restrictions on outgoing flights with some strict SOPs, yet the Covid 19 seems to be an invisible predator waiting for its prey regardless of any region. The virus has impacted all the zones i.e with the cooler, hotter or moderate atmosphere.

The only solution to fight this pandemic is social distancing, maintaining the hygienic environment and avoiding crowdy spaces. The Governments around the world have imposed strict lockdowns and the frontline fighters (Health workers) around the world doing a marvellous job to protect their fellowmen even at the cost of falling prey to this deadly virus.

While fighting this pandemic. Many health workers have been tested positive. Even, some frontline soldiers lost their fight to this pandemic and laid down their lives to secure the future of their respective country.

Education is being imparted through digital platforms as online education is increasing for students. Though students are facing some issues such as the connectivity, Sound quality, Video Quality, yet in this emergency, the Schools, Colleges, Universities and other online course websites are striving to provide some light of  Knowledge in these difficult times.

The booming industries such as restaurants, hotels, motels and  Aviation have been closed for an indefinite period.

Coronavirus Pandemic has brought catastrophe in the world impacting all the industries and has caused economic slowdown throughout the world in all the major continents who are thickly populated such as Asia, Europe, the Americas and Africa.

Unfortunately, despite 151598 deaths worldwide and over 2.21 Million confirmed cases covid-19, all eyes are hooked towards the discovery of vaccine to treat the patients and save their lives. At the moment, only plasma therapy is being conducted and some common medicines are being used such as cough, flu fever-related medicine.

Though human trials have been started by some  Pharmaceutical companies, the experts are of the view that it may take one and half year for the vaccine to be available in the market. It is also estimated to be the costliest vaccine ever keeping in view its global implications and rapid speed of pandemic spread in the world.

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It is estimated that Europe, Asia, Middle East to suffer a lot especially, Italy, France, UK, Iran and US as the ratio of deaths is higher than other countries especially US where average deaths per days have surpassed all other nations that prompted Trump to cut funding to world health Organization accusing it of mishandling the pandemic and delayed response to mitigate its implication while  WHO head has refuted the allegations.

The covid-19 has also impacted Sports, News & Media, Entertainment and Services Industries to the extent that. All the sporting events have been suspended, series and Leagues have been rescheduled and big events such as  PSL, IPL, FIFA  World Cup, Olympics Games and others have been completely cancelled raising concerns among the players. Even the players are facing the trauma having travel history to the epicentre of Covid-19 Pandemic and tested positive.

 The Entertainment industry has been heavily impacted as all the dramas, Films and comedy shooting and recording has been postponed till indefinite period and all the events including concerts have cancelled due to covid-19 and actors have lost the source of living.

The services industry especially the skilled and non-skilled have been subjected to starvation as all the roadside small business such as Hair Cutting Salons, Cobblers, Gold and blacksmith shops, Electricians, Booksellers, daily wages workers and Masons have lost their living owing to lockdowns globally.

 Finally, the Print and Electronic  Media are partially impacted though they are a very vulnerable community as they have been busy in coverage of the pandemic around the world and are prone to contracting the deadly virus due to close contact with Patients at Quarantine Centres and the Health specialists working at the hospital and temporary health centres specially set up for an emergency.

The Print Media has been hit hard as people consider it risky to read a Print copy of newspapers over covid-19 fears and prefer paper or online edition of the newspapers. Hence, such a trend has impacted the Newspaper  Sales badly.

On the other hand, electronic media such as News Channels, Radio and Digital Media such as Websites, YouTube are grabbing people’ attention.

The Social Media is also buzzing with Covid-19 updates though  Social Media and Silicon Valley companies have asked their employees to work from home and follow the preventive measures these include Twitter, Yahoo, Facebook, Microsoft and Search Giant  Google.

The world should be united to fight this global pandemic that is haunting the world. The US should release funds to help WHO work effectively for global health and expedite the process of vaccine discovery as each day will deprive the near and dear ones of the families around the world. With collaborative efforts, the world can win this war against the pandemic.

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