The onset of the Covid-19 pandemic in late 2019 came with a wide range of economic and social implications. For example, it has triggered an economic crisis across all continents. Many countries continue to struggle with registering even the slightest economic growth. In the wake of travel restrictions and lockdown protocols, a number of economic sectors have suffered tremendous damage. For instance, some of the hardest hit sectors include, the airline business, hotels, and restaurants. Furthermore, manufacturing has also seen considerable risks. If we add the social and psychological effects of the pandemic during the extended periods of confinement and loneliness, then we begin to get an idea of the devastating effect it has had.
Two years down the line, the pandemic has tested the economic and social effectiveness of many economies.
Economic effectiveness deals with an economy’s inves versus output, preparedness, and its ability to recuperate from unanticipated circumstances such as the covid-19 pandemic. Resources are allocated optimally to minimize waste and inefficiency. On the other hand, social effectiveness deals with social development (Fernandes, 2020). Many countries have implemented both economic and social measures to mitigate the economic and social effects of the pandemic. For example, relief measures such as suspending the payment of taxes and mortgages to relieve pressure on small businesses and households. Additionally, economies have slashed interest rates to almost zero and rolled out economic stimulus programs in an attempt to protect their economies. Other countries are applying measures like relaxing fiscal policy to help those most vulnerable and citizens affected by the sharp drop in economic activity.
Some countries introduced government-backed financing to companies affected by the pandemic while others suspended the payment of mortgages for several months especially for the most affected workers and businesses. The injection of billions in direct aid and grants to small businesses as well as tax breaks is another measure of economic effectiveness implemented during the pandemic.
In addition, countries have announced the mobilization of huge sums of money to combat the economic effects of the coronavirus pandemic, coming from both public and private contributions. Today, although the worst moments of the pandemic are gone, the economic and social scars remain. After a deep global economic contraction and a wave of economic stimuli programs employed by governments to deal with the situation, economic recovery is being witnessed in different parts of the world. Not to mention, with vaccination processes underway in most countries, economies are bouncing back from the devastating effects of the pandemic. Nonetheless, a variety of challenges remain. For instance, bottlenecks in global supply chains, sharp increases in energy prices, the threat of new variants of the coronavirus, high levels of indebtedness, and rising inflation are some of the challenges that are making it difficult for countries to achieve economic and social effectiveness.
When comparing the different regions of the world, the most difficult recoveries will be in countries where vaccination programs are progressing at a very slow pace.On the other hand, those countries most exposed to inflationary pressures will also have additional difficulties to attain economic effectiveness. Countries with a strong dependence on imported products will be more exposed to difficulties.
According to Buzzi et al. (2020), the social impacts of the COVID-19 pandemic is evident in all sections of the population and is especially detrimental to members of the most vulnerable social groups. People from low socioeconomic backgrounds, indigenous peoples, older adults, persons living with disabilities, women and children continue to face social challenges. Research suggests that that the economic and social effects of the virus are demonstrated disproportionately by different social groups (Weiss et al., 2020). For example, people living in homeless shelters may be more exposed to the devastating impacts of the virus.
If not addressed properly, I believe that the social and economic crisis created by the pandemic may also give rise to other challenges like exclusion, discrimination, inequality, and unemployment. The psychological implications are likely to be wide ranging. In this new context, characterized by a total alteration of the normal social routine, it is necessary to develop strategies to promote personal and community mental health(Debb et al., 2020). Effective social protection systems may also play a critical role in protecting members of the population in coping with the psychosocial effects of the pandemic.
In conclusion, the economic and social effects of the coronavirus pandemic have put a significant strain on countries, governments, and societies. Despite the implementation of economic and social policies designed to cushion the public against the disease, people have had to grapple with the numerous challenges brought about by the pandemic. However, if nations continue to invest massively in economic and social protection drives, the effects of the pandemic on members of the public are likely to return to pre-pandemic levels. Nonetheless, it is going to take the collective efforts of governments, corporations, and citizens to move on from the pandemic’s effects.
References
Deb, P., Furceri, D., Ostry, J. D., & Tawk, N. (2020). The economic effects of Covid-19 containment measures.
Weiss, M., Schwarzenberg, A., Nelson, R., Sutter, K. M., & Sutherland, M. D. (2020). Global economic effects of COVID-19. Congressional Research Service.
Fernandes, N. (2020). Economic effects of coronavirus outbreak (COVID-19) on the world economy. Available at SSRN 3557504.
Buzzi, C., Tucci, M., Ciprandi, R., Brambilla, I., Caimmi, S., Ciprandi, G., & Marseglia, G. L. (2020). The psycho-social effects of COVID-19 on Italian adolescents’ attitudes and behaviors. Italian journal of pediatrics, 46(1), 1-7.
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