Winter of economic recession is coming

Spread the love

Imdad Hussain;

Almost two weeks ago the United Nations (UN) secretary general warned that a global recession, perhaps of a record dimension was a near certainty. Needless to say, global economy is facing a worst crisis in the recent times. As the epicenter of corona virus leaves China, from where it originated, it starts to cause lockdown and panic across the Europe and has reached to the American landscape in a short span of time. Now, the pandemic has stretched its tentacles across the world; and certainly, many states have surrendered to the scourge. Subsequently, the global economy has experienced a new recession; global domestic product has shrunken implicating other economic indicators around the globe. Industries have been locked down in order to contain the contagion: consequently, production has hit a new low.The contraction of domestic product and disruption of financial activities around the world is setting in a new winter of economic recession. Every now and again, the world economy has experienced economic and financial crisis. The notable episodes in the world history are several but to limit the range, I am enlisting the prominent economic crisis and depressions of only two centuries: great depression of 1920, Energy crisis of 1970 and economic crises of 1980 lasted during the 20th century. The 21st century faced a similar fate in the wake of 2008 financial crises and here comes the Covid-19 crisis that has upset even the economies of the wealthy nations. Each crisis has left the world in a lurch.Covid-19 is no exception. With thedevastating consequences spreading, the global village is heading towards a quagmire of unprecedented problems. Things are falling apart owing to the lock down and social distancing policy. The global death toll has already sky rocketed. As of now, as many as 102,843 have succumbed to death due to novel corona virus. And total 1,703,018 people are said to have been infected by the virus. According to the Centre for Strategic and International Studies (CSIS), China’s manufacturing and services sector plunged to record lows in February. Similarly, automobiles sales sank a record 80 percent, and China’s export fell 17.2 percent during the same month. It is to be mentioned that during this time China was the epicenter of Corona virus. Now, America along with European nations have become the hard-hit countries.The implication are not going to stop soon and it is feared that the world could face worst implication of the menace. The vulnerable conditions have wreaked havoc on the health care system. The best health care systems of the western countries have collapsed. America and UK along with other European nations have already announced health emergency to fight the pandemic. To cater the needs of patients, countries have earmarked lion’s share of finances to help heal their patients. In addition to the rampage, tourism industry is struggling in this quarantined time. Nations have cancelled scheduled flights to ensure social distancing and many have closed borders; from America to Latin America, and from Asia to Europe, as a caution to slow down the spread of the disease. In the face of such practices, airlines and hotel industry are suffering from heavy loses. They losses will have dire consequences on the world in general and global economy in particular. One cannot imagine of such isolation in an integrated world. Soaring unemployment is another fall out of the crisis that may adversely impact the well-being of the people. International Labor Organization (ILO) warned that the diseases could cause equivalent of 195 million job losses. As a consequence of this huge impact poverty may surge, particularly in the underdeveloped countries. Ultimately, the vicious cycle of crimes may take the globe into its folds. This could greatly impact the harmonious social order of societies as a result of alienated populations. Terrorism could surge owing to the precarious conditions. The corona virus pandemic has shifted the attention of climate scientists from the issue. Recently, Glasgow climate change conference and several other climate missions were postponed due to fears of Covid-19. In addition, nations are diverting billions of dollars to contain the infections, which could impede climate donations. This does not bode well for the fight against climate change. Environmentalists fear that it may incur high risks for the already vulnerable planet. ast but not the least; it was evident that rising China and Asia were changing the international politics. Balance of power was shifting as aresult of the scenario. This fueled the competition among the dominant global actors; China, USA and Russia. Global politics is taking a new course in the wake of the pandemic. Instead of cooperating the global powers have put mutual cooperation on the back burners and are vying for soft-power influence. This could result in another cold war between China and its main rivals. As a result of which the world may face a harsh winter in the coming years. o reverse the adverse consequences that the calamity may cause, the global leaders must come up with multi-prong strategies to heal the inhabitants of the planet earth. These strategies must be inclusive and devoid of any vested agenda. This is the only way through which the world can survive in the harsh winters to come and to fulfil the global promise of saving the future generations. If winter comes, can spring be far behind?

The writer has earned degree in Business Administration, LLB and International Relations.

Similar Posts