Challenges to the world economy in 2020Views: 394
The contemporary world is grappling with the gravest situation in the present scenario where this type of pandemic is bleeding the every nook and cranny of the world. The entire economy of the world was stalled due to its wide ramifications and the ravage it rendered shook the very conscience of the entire world. In this unprecedented times where the economy is in dire straits a comprehensive, meticulous and calibrated approach is the need of hour to avert this crisis.
The COVID-19 origin is subjected to be enraging topic in the international affairs but the first case was registered in the last year itself in Wuhan province of the China and from then it rapidly spearheaded it tentacles to every corner of the world. The domino effect of COVID-19 had a multiplier impact on the world economy where all the sectors of the economy are bleeding under this staggering lockdown which was never sawn light of the day from the past 70 days onwards. The punitive and stringent actions of the governments all over the world is not hindering the growth and development of the pandemic but it is showing a dampening effect on the common men on the road.
There are plethora of grave challenges that are hindering the world economy due to this pandemic the first and foremost is agriculture sector in the rural areas is paramount important and it is the only sector where large traction of population are inhabiting on this sector due to the fear of social transmission the people in the rural areas are lackdaiscal to go to the agriculture fields and this will create a shortage in the growth of the food grains. The second sector which harbors Crores of job employment in the informal sector is Small and Medium scale industries where lot of people lost there jobs due to this unprecedented lockdown and starving for food . The job insecurity in the Small and medium sector is haunting the workers to a great extent and giving sleepless nights to them.
The multi national companies around the world shut down their offices and allowed there employees to work from home, they fall short in accomplishing there respective targets for this quarterly session , due to this companies are concentrating on job cuts to avert these losses. The reverse migration is quite apparent from the others countries to there home lands and from urban areas to the rural areas, due to this shortage of labor will erupt and this will further impede the development activities to a great extent unless or until the future prospects blossom.
The trade between the countries was stalled, liquidity crunch in the global economy is rampant and stymieing the growth prospects, shortage in the agriculture food grains and its impact on the allied sectors , critical shortage of masks and personal protection equipment is in dire need to confront this pandemic , the domestic violence in the houses is surging , due to this unprecedented lockdown and its immense impact inflicting heavy on the mental disorders of the physically disabled persons and octogenarians, the people are dying due to starvation, the innocent animals and birds are the big sufferers due to lack of food in this pandemic.
The unemployment ,poverty,mal nourishment etc are staggering and registering new peaks from the past 70 days. The formal and informal sectors are reeling under this pandemic and searching for a ray of hope in this tumultuous times.
“TURNING CRISIS INTO AN OPPORTUNITY”
The international reputed agencies anticipated the bleak global prospects and contemplated a slew of measures to reinvigorate the economy because the growth rate of the world took nosedive in this uncertain period . The financial institutions of various countries is easing the availability of the liquidity in the markets by tapering odd there interest rates by keeping the economy on the backtrack and in tandem with that the governments of all over the world by loosing its purse strings by adopting unconventional monetary policies like fiscal stimulus, easing the debt burden etc to jettison this crisis.
-B. Dwarakanadha Reddy