Socio-economic Impact and Opportunities of Coronavirus (COVID-19) Global Crisis

The year 2020 and the start of a new decade began with major events around the globe; from political tensions between Iran and the United States to the outbreak of a respiratory disease which started in a Chinese “wet market” in the capital of Hubei in China. Shortly after, the disease, officially named COVID019 by the World Health Organisation, had taken hold in Europe, the United states, south and east Asia and is just starting to spread in Africa. From an epidemic, it is now declared as a global pandemic which as a result of globalisation, infected people who travelled and carried the virus with them to other countries. As there is widespread information about the disease itself; I will briefly look at its economic and socio-political impacts and the opportunities it has created.

The first major blow hit the Stock Market and the global economy because of the lockdowns imposed by the national governments to prevent the spread of the disease. This has led to the loss of jobs of millions of people around the world, however, thanks to our global inter-connected technology many others began adapting to work online from their homes. This approach has been implemented not just by offices, but universities and schools have had a major shift to online-classes as washing hands and staying home to social distance are the only prevention methods we can have until medical scientists can produce the vaccine and the cure for this novel virus. Unfortunately, underdeveloped and developing countries in Asia, Middle East especially Palestinian Territories and Syria, East Europe and South America will suffer the most due to the lack of funds, medical supplies, food chains in case of imposed lockdowns and social distancing (physical distancing). And without necessary funds, underdeveloped or developing countries may collapse in the long run. As the demand for necessary hygienic products such as sanitisers is increasing, there is also a surge in cybercrimes and thefts in Europe, the European Commission president Ursula von der Leyen warned on March 24th, 2020, according to EU Observer.

Furthermore, the social impacts of isolation and not having physical contact for a longer period will have severe mental health consequences. As announced recently by most European countries that social distancing, lockdown and staying home may last for a few months, there are fears of people resorting to committing suicide due to poor mental and physical health. One example is the Finance Minister of Hesse State in Germany profoundly worried about the handling of the economy due to Coronavirus has committed suicide (Euractiv). The virus has become a pandemic at a time of major cultural and social events taking place in China, Persian speaking countries, India and other places as well as the Olympics in Japan, which has led the countries to cancel or postpone these events for 2020. And so, panic-buying of hygienic products and social disruption is another impact of COVID-19 pandemic. There has also been an unprecedented increase in the usage of social media, online movie streaming platforms like Netflix and online communication platforms for classes or group meetings such as Google Meets, Google Hangout, Zoom and other platforms. Therefore, a new world has emerged, a completely virtual world where all communications and contacts have become online.

We know that the coronavirus pandemic is creating many problems, but it’s also creating tremendous opportunities. For instance, a crisis can create innovation — small businesses in developing countries have started producing surgical masks, gloves and protective clothes for medical workers battling to contain the virus. It also means leaders and governments are tested and gives them an opportunity to step up, ignore status-quo and pursue new approaches.

But there are a few questions that we need to ask experts and politicians — Is this pandemic turning us and the whole political sphere inward towards nationalism and nationalisation? And how will the new normal look like after the containment of Covid-19? What will the world return to once this ends?