COVID-19 is causing human, economic, social, and cultural setbacks around the world. Just when the world economy was firming up, omicron is hitting the global economy. According to a survey of SANEM, a private research institute, it is possible to recover 61 per cent of the losses in trade and commerce due to Covid-19, but omicron variant could pose threat and cause a new shutdown of the economy.
Most people are already struggling with rising fuel prices, commodity prices along with transport and production price of developing countries around the world. Moreover, gas and electricity problems are hampering production according to capacity. Entrepreneurs are being forced to lay off workers, thousands of workers are becoming unemployed. Needless to say, if this situation continues, it will one day cause workers' dissatisfaction. Rising prices of consumer goods and raw materials, including fuels in the world market, labor crisis and rising wages, rising transportation costs, and the pressures on production and supply systems as a whole have caused more concern in developing world countries than in developed ones. There are many countries in the developing world that import everything from industrial raw materials to machineries.
Since all the systems of production in those countries are import dependent and they do not normally produce any of them, the rising prices of other commodities including fuel in the international market inevitably put pressure on their overall system. The lion's share of the economies of developing countries is in the hands of the state, that is the public sector. Although the private sector plays an important role in the economy, their size is negligible compared to the state.
However, if we look at the various sectors of government and trade, it will be seen that despite repeated allocations of funds on the pretext of increasing expenditure, there is never any profit from those sectors. Public sector money comes from the pockets of taxpayers. Where there is no profit from the public sector, how will the private sector benefit from the global catastrophe?
The impact of the corona has created a catastrophic crisis around the world. Even the United States acknowledges that their economies have collapsed because of the Corona. Expenses are always higher than their income; But in the crisis caused by the corona, the budget gap has widened.
The countries of the developed world are acknowledging the Corona and post-Corona economic crisis and adversity, and they are constantly negotiating and taking various steps to address it. However, the countries of the developing world are not showing any interest in it.
Policymakers in the developing world must remember that no one is safe from this global crisis. The state will face economic loss if the industries of the country come to a standstill and the overall production system collapses. In this situation, the policy makers will have to pay close attention to whether the factories of the country are running properly or whether the production activities are running.
From the policy makers of the developing world to those involved in the production system, everyone has to be prepared with foresight to deal with the crisis with foresight.