Impact of globally-terrifying COVID-19 on economy, consequences and future plans

Central Bank of Myanmar.  Photo: Ye Htut Tin (NLM)
Central Bank of Myanmar.  Photo: Ye Htut Tin (NLM)

The infection of globally-terrifying COVID-19 is touching here and there all over the world. Global confirmed COVID-19 cases topped 2.9 million on 27 April afternoon, according to the Centre for Systems Science and Engineering (CSSE) at Johns Hopkins University. The fresh figure reached 2,994,690 with 207,270 deaths as of 2:30 pm (1830 GMT), the CSSE said. Even though general matters are directly related to health role, all other sectors are being affected. Especially, the virus infection might lead to an unprecedented effect on the global economy, according to the world observers.
Do the consequences of the coronavirus seem to be similar to ‘domino effect’ described by US President Dwight D Eisenhower? Or do they seem to be similar to the butterfly effect referred by Edward Norton Lorenz, an American mathematician and meteorologist? Nevertheless, the worries of coronavirus have already effects on all the countries in the world. With a series of advancements of IT and transport vehicles with high technology, the world gaining momentum of globalization is suffering more domino and butterfly effects hit by the ongoing coronavirus crisis when compared to those of the past moments.
How are all the businesses across the world grappling with this situation? It is absolutely certain that all are struggling with such worst circumstance looking forward to a particular hope. International economic situations such as stockpile, investment, production and trade have been greatly affected. There has been a sharp decline in the financial markets. The world is now coming across a remarkable loss and a terrified situation that have not been encountered for previous decades. While the investors are worried about the future prospects for their businesses, the consequences are becoming more transparent. All the markets are suffering lack of trust. Hindrances and delays lie in economic efforts of all respective countries of the world.
Despite the fact that the world is seeing complexities of military, politics and demarcations, the wealth role has become more significant than the previous moment. For that reason, the world of the humans has become the wealth dominant place. Different situations are changing in the world that gives special consideration of the wealth. At such a time, the largest worry of the governments is an increased unemployment taking place in their economic environments. Efforts are being put into avoiding the unpleasant situation. Every government has to prepare for aid programmes, orders and announcements, thereby aiming at protecting job opportunities of the citizens.
The coronavirus is automatically affecting the productions of the world nations. The social cost amount will be large in every sector soon. The role of banks will be more crucial and efforts will be stepped up to be able to carry out the tasks more efficiently. The central banks are planning to issue out loans with lesser interest rate to encourage the swift flow of finance. More funds have to be channeled into economic structure to avoid slow flow of finance.
Tourism is one of the hardest-hit sectors as a result of the coronavirus. This is because the government restricts people’s access to travel to contain the spread of the coronavirus pandemic. Changes appear in travel schedules including flight. Hotel industry, tour guide service and other related businesses have been all affected. In a short time, the effect on the international economic environment is very huge.
The efforts of the governments led to give and take policy in economic structures. The restrictions of the governments helped mitigate the prevention of the virus, but had a severe effect on multiple sectors including economy. The virus crisis caused domestic and foreign economic fields to slow the flow of finance. It, on the other hand, created liquidity problem. The purchase and the use of the rich became slower and the attention of those who have insufficient money turned only to essential goods ignoring favourite ones. No one interested individual savings.

Tourists at the UNESCO World Heritage Site Bagan. Photo: Ye Htut Tin (NLM)
Tourists at the UNESCO World Heritage Site Bagan. Photo: Ye Htut Tin (NLM)

There was a sharp decrease in the productions of the factories and the industries from the world countries. Transport restrictions caused an uneasy way to buy raw materials and the cost increased. A decline in production led to a decrease in market supply. Different forms of restrictions caused demand to decline. The virus wave had effects on international markets, regional and local ones to the small in the neighbourhood. When supply decreased, demand faced uncertainty.
Most of the countries are reviewing possible health conditions their citizens are facing in advance of the risk and guessing potentials of related businesses as well. Learning the lessons from the previous events of economic failure, they are differently considering and preparing hoping for the best. The general situations are leading to a global recession.
The health departments inform the people of the contacts between persons that are a main cause of the virus infection. The people must follow the health guidelines issued by the ministry. We must follow social distancing that means three feet apart in the working environment. The workers have to work from home to avoid mass gatherings and crowds. The people are instructed to follow home stay. Due to these situations, the use of online platform is becoming widespread in day-to-day life of the people.
The people get accustomed to mobile phones and social media platforms in the communication area to some degree. Most of the employees may see some difficulties as they start to work from home from now. Regarding the plan of work from home, some businesses are beginning to launch services on a trial basis only from now. Some have been providing sale services through online since a few years ago. Anyhow despite some difficulties, an economic arena capable of using better ways of online in multiple sectors is becoming widespread in the long run. It is a more optimistic view we are now taking.
It can be said that the threat of the coronavirus resulted in the people in the country suffering worries and hardships, but it is the driving force to put our economic environment into a better society with the help of IT. In particular, conventional business type is turning into digital online economy. The world of today has nothing to choose except for online. The future lives of the people will remain in the life of online from the 21st century.
All businesses big and small are in the process of preparing for reforming while hoping for the opportunities in the wake of the virus under control so as to overcome the most serious challenge of the Covid-19. For ensuring the constant existence of the businesses, all businesses from the top level to the grass root are making utmost effort in order to keep in touch with the customers. Previously they had a comfort zone that is easy to pass through. But now it is a different matter for them. It has been already known to them that they are being pushed into an atmosphere of constantly innovating new necessities while thinking beyond the comfort zone.
Different people have different emotions under the different circumstances, hoping for different results. Some people have already arrived in the online world in a comfortable way. Most of the people are also trying to be present in the world of online not to lose their professions. It is thought that the services of education, health and entertainment will be able to shift to the online. Technologies can be independently used at fair price. For that reason it is absolutely certain that the online business world will be thriving in the future.
Therefore, whatever crisis is happening, a partial business structure will be operational through online. Each business is supposed that now is the best time how to connect their businesses to online. The use of robots, drones and artificial intelligence system (AI) will become more widespread.
In Pali language, the word ‘capa’ means damage. Not a catastrophe appears only from now. Humans have already encountered different forms of disaster from time immemorial. Buddhists have ever heard of the three catastrophes namely famine, war and epidemic disease. These disasters approach the humans differently. It is believed that these disasters are related to excessive greed, anger and ignorance of the humans. American computer business tycoon Bill Gates predicted in a talk show in 2015 that the pandemic not war would be threatening the world in the upcoming decades.
The different forms of danger capable of threatening the future world are much related to the mental changes of the humans. Although the humans are constantly making efforts in undertaking advance innovations, they will have to reduce excessive greed, anger and ignorance. Only then will the world respond to possible upcoming different forms of danger by showing great maturity. Translated By Htut Htut (Twantay)

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