The world economy is in doldrums whereby the existing policies of capitalism find itself in strain and clutches. The skewed invesments in the different sectors has led to not only the inequitable generation of wealth, but at the same time, has made the world more susceptible to the unprecedented crisis like that of COVID-19.
Had the situation been more equitable in nature, the present situation would not have been so precarious. By taking recess from our daily routine and observing the economic phenomenon around us, few facts will begin to discernible.
Health is the dominant factor
Primarily, it is the health, which is important and essential for all of us, for each one of us, irrespective of the other variables like money, political strength, etc. No doubt, there is direct correlation between the economic potential and the health of the nation.
But its not true in every sense. Even most developed nations of the world lacked resources in containing the virus. For example, the most developed nation like USA, has faired poorly in isolating the virus strain from the human population. And on the other side of the spectrum, the developing nations like the Singapore have fared better in conatining the virus.
Similarly, Newzeland, the less political powerful nation have fared well in containing the virus strain. Therefore, the countries that have invested efficiently and judiciously in the health sector have effectively helped in checking the spread of virus.
Inequality is cause and consequence of COVID-19
Another factor is inquality.Various researches have indicated that the unequal countries like India and Brazil have remained ineffective in containing the spread of the virus. These are the nations that are at the same time grappling with detereorating health conditions.
Compounding this problem is the fact that the pandemic has also enhanced the inequality in the already unequal nations. In another way, the pandemic is making the dark side of the capitalism to surface to the exent to make it ubiquitous in nature.
Mis-allocation of resources
Arising from the above discussion is the fact that the nations with mis-allocation of resources among the different sectors of the economy has suffered the most. In a way, COVID-19 and mis-allocation of the resources are directly related.
Joshua Gans in his book “Economics in the age of COVID-19” has rightfully explained the deleterious effect of thinking in terms of trade-off between the public health and the economic health.The thinking that most of the nations, at present, are grappled with.
The flip side
But the picture is not so gloomy at it seems, rather, there is silver lining. COVID-19 is striving towards making the economy more ethical in the sene that, the health is now not seen just as an individual concept rather the concept, that engulfs the whole community itself as one health is now very much related to the health of the other individual.
Furthermore, the awareness towards the health standards has been increasedin the developing nations, which directly or indirectly adds up to the economic potential of the society by enhancing the labour productivity in these nations. Subsequently, these benefits will spilled globally sooner or later via the process of globalisation.
At the same time, this pandemic has brought all the nations irrespective of their geopoilitcal spectrum and position at the single platform.
COVID-19 has assisted in surfacing the inefficiencies in the capitalist market in the different nations and at the same time, has led to the situations where the inclination of the capitalist market are moving towards the socialism.
The post-COVID-19 scenario will make the different nations to walk on the pathway guided by just the economic principles and not by other politico-socio principles. This is not only important, but utmost essential as the world is marching on the path of technological progress of unrevealed and undisclosed nature.