Coherent national strategies, backed by regional cooperation efforts, offer a way forward for economic recovery in South Asia, which is rapidly becoming the next COVID-19 global hotspot. Challenges and policies relating to macroeconomics, health, economic sectors, stimulus measures, and reforms, which are all crucial for the region’s recovery are discussed.
Countries across the world are relying on trial-and-error interventions to arrest the COVID-19 pandemic. But, even as health systems are close to breaking down and economies are flailing while underprivileged citizens are battling unprecedented social and financial catastrophes, most governments are failing to provide appropriate social security and relief.
The disruption of supply chains caused by COVID-19 has led to predictions that international firms will relocate production away from China, benefiting other emerging economies, including India. However, China’s integration with the global economy in terms of international finance, investment, construction and as a low-cost location for global production is now so deep that such changes will neither be quick nor painless. In fact, China’s innovations might allow it to even reinforce its position in the global economy.
The COVID-19 pandemic has led to the loss of livelihood for many Indian migrants working abroad. In light of this, an inclusive migration governance framework is the need of the hour to provide Indian workers with a social safety net during crises.
With the outbreak of the novel coronavirus, the world economy has come to a grinding halt. The economic fallout would be enormous in terms of loss in production, income, and employment. The COVID-19 pandemic has caused major ruptures in the world system, which has serious implications for global accumulation of capital. It, therefore, presents an opportunity to reimagine the global division of labour and the international economic architecture.
In the wake of the COVID-19 outbreak, the Sino–American relations have hit a new low. Both the countries are engaged in a propaganda war against each other, which the United States seems to be winning. The US suffers from Sinophobia and has cultivated hate against Asian Americans, which is reminiscent of the anti-China sentiment that was prevalent in American cities in the late 19th century. The pandemic experience is likely to make the US more insular and reluctant to embrace foreigners
As a bio-security crisis brings the world to a brink, the dominant neo-liberal vision of world order must be displaced by a humane globalism and institutions that actually supply public goods.
Whether a black swan or a scapegoat, Covid-19 is an extraordinary event. Declared by the WHO as a pandemic, Covid-19 has given birth to the concept of the economic “sudden stop.” We need extraordinary measures to contain it.
