Draconian measures to defeat coronavirus.
A trade expert said on Thursday that governments around the world should start implementing measures to protect their industries amid coronavirus pandemic. Simply because the virus has impacted tremendously on the economic sector. Some countries as of now are suffering great plunges in their economy due to financial crises.
Most countries have reinstated draconian measures in an attempt to defeat the virus. They have implemented closure of borders, lockdowns which have affected economic activities. For instance, the travel industry in which flights are being canceled and public means suspended. Leaving both travel and fuel industry at a loss.
Countries are implementing a restriction on exports of medical supplies.
Over 180 countries and territories across the globe are victims of the global outbreak. The virus seems to be spreading rapidly as death tolls, and new cases increase. As a result, to defeat the virus governments are adopting all relevant measures, including restriction of medical equipment. Especially since the pandemic is global disarray, no country would wish to experience a shortage of the protective clothing. Similarly, the same procedure will soon apply in other areas. Hence restriction of food supplies.
“There is a much bigger wave of protectionism in the near term that we should expect that is not just medical supplies … but it will also start to affect food,” she told CNBC’s Capital Connection.
“As countries get nervous about food stocks and food supply, food security, they are going to stop allowing the export or restrict the imports of food products,” she added.
Countries are left depending on government stimulus.
With most governments implementing self-isolation and social distancing as measures to keep safe, the global economy will continue declining. Especially since these measures are the only way to defeat the virus. Outdoor activities involving trade have been suspended in most countries leaving the people depending on government stimulus.
For instance, in countries like Australia the government has pledged a total of 320 billion Australian dollars to help the country’s economy. However, in countries like South Sudan with no funds the economy will continue to deteriorate.
Countries should begin creating domestic employment opportunities to overcome the financial crises.
During a Wednesday briefing, the World Trade Organization told CNBC the world will continue suffering economic loss if the corona duration continues. The losses will even increase by 13%. An even greater loss compared to 2019 which was incurred because of the US-China tariff fight.
Nevertheless, the trade organization is confident of a quick recovery if the pandemic comes to an end. I.e. most probably in 2021.
Deborah Elms, the executive director at Consultancy Asian Trade Centre says the only way to protect the economy is through saving favored industries. The government should channel their efforts to protect favored industries and sectors. Especially the sectors concerned with job opportunities.
She says it is only wise to enhance and promote domestic employment in a country especially with the various restrictions’ countries are implementing on trade. The most effective method us securing one’s economy through employing citizens and supporting businesses.
More:
