How can the global economy survive Corona?Views: 1592
The novel corona pandemic is surviving against the odds and bringing nightmare to the world where every sphere of our lives brought into grinding halt. It has given an worth full impression among the people that whether the world can survive in this tumultuous span or else whether the people can get rid of this pandemic. The governments of today are fully geared up to invigorate the economy by pursuing pragmatic approach to stimulate growth prospects.
The corona virus that was erupted in the Wuhan city of the China brought the whole world under its glitches where the gravity of the virus ransacked every walk in the world to a grinding halt by exuding it’s propensity . The epidemiologist all over world studied the genesis of the virus and advocated strict lockdown and social distance are the best ailment to ameliorate the virus transmission and flatten the curve in the world. The countries in view of this bitter truth raced against time one after the another in imposing strict lockdown in their respective countries due to this world was caught in standalone situation. The consequent to this the global economy is in dire straits where the production and supply was stagnated due to the pandemic . The marginal and down trodden sections of the society bear the brunt of this virus where their livelihoods are deprived.
The governments noticed the ill-effects of the contemporary situation that was persisting in the world and had taken the pragmatic steps to contend the ongoing situation. In view of that it had a series of deliberations with the honchos of the various sector in the economy and take their views into consideration by incorporating their views in policy formulation. The wise approach is the need of the day for every government to survive in this desperate situation and there are plethora of measures that are in line of action for the government to subdue the virus in a dovetail manner without debilitating the economy much more and by spinning the vicious growth cycle of the economy . The government should categorize the places that have registered with highest infection rate in one zone and relax the public life in the remaining zones according to the hindsight.
The central banks of the myriad nations are planning to stimulate the economy by offering unconventional monetary policies such as the low interest rates to the industries that are confronting with the ready cash crunch in the economy ,purchasing the long term bonds as proposed in the operation twist etc yields the growth to pick up. It should also re-schedule the loans that have been taken by the small-scale sector industries and companies so that the unease will weeded out among them. The government in tandem with the central banks should also lose its purse strings by relaxing their respective fiscal deficit targets in order to give impetus to the economy through capital expenditure. The government should relax the restrictions on the essential sectors that are in dire need of the medical masks, personal protection equipment , medicines etc to support the lives of the people those who are in dire need. The government should trickle down the monetary support to the most vulnerable sections of the people in the society by depositing the respectable amount in their bank accounts so that the lower rung strata of the society will start purchasing goods from the market and this in turn will pick up demand in the economy. The government should reopen the economy in a phased manner by providing and taking the security measures to the employees. The others initiatives of the governments to instill the vigor and vitality in the economy are by giving relaxation to the income tax payers by increasing the tax slab rate.
The government should give monetary support to the rural sector especially to the farmers where they are going for sowing in the Kharif season due to the upfront monsoon climate and this leads to employment generation on one side and also avert the shortfall in the food grain production.
Lastly, hope the wisdom of knowledge will pervade among the people and the governments in the world to give knockout punch to the corona by joining hand-in-hand for bright prospects in the economy.-B. Dwarakanadha Reddy