Question

The outbreak of the COVID-19 virus poses an unprecedented challenge to economies and societies in countries across the globe. On some dimensions of human development, conditions today are equivalent to levels of deprivation last seen in the mid-1980s. Using the gender development index, multidimensional Poverty Index (MPI), Consumer Price Index (CPI), Gini Coefficient , what are the channels of economic impact we can expect from COVID-19?

What actions can policymakers take to lessen the economic impacts of the COVID-19 pandemic for low-and middle-income countries?

Answer 1

Answer: Gender development index: This index measures the Gender gap that can impact human development sectors like health, education, and labor participation, etc. In COVID-19 gender development index impacted in the form of health, High risk of violence against women and child, the mortality rate for pregnant women has been increased, sexual and reproductive health is at higher risk of intimate partner violence due to increased tension in the household,

Multidimensional poverty index: It measures the various deprivations at the household and individual level in health, education, and standard of living. It gives a comprehensive picture of people living in poverty. In COVID-19 MPI indicators nutrition. safe drinking water, cooking fuel is not accessible by the poor people like migrant laborers, vulnerable groups. for eg. Saharan African countries face the greatest burden in multidimensional poverty and high risk. this pandemic creating joblessness and their children are suffering from malnutrition.

consumer price index: It examines the weighted average of the basket of consumer goods and services like transportation, food, electricity, cement, manufacturing, etc. In COVID-19 CPI data has been done by the telephonic medium as lockdown is going on. the data is showing disruption of the supply of non-essential items, favourable impact on food items, the weak pricing power of producers.

Gini - coefficient: it is defined as measuring the degree of inequality in the distribution. Due to the pandemic inequality in the market has increased this makes Gini coefficient increase over the crisis.

channels of economic impact from CoVID-19: GLOBAL GDP stagnates, Financial impact on firms and the financial markets, Negative impact on employment, labor markets, and poverty,

Actions that policymakers can take in order to lessen the economic impacts of the COVID-19 pandemic in low and middle-income countries :

• The policymakers should ensure that hotline services for al victims of domestic violence are considered as an essential service and should keep open for 24 hours.
• The stimulus package should ensure social protection and care should be maintained to all pregnant women
• The immediate need is to limit the virus outbreak and manage the crisis.
• make the work stations safe and behavioral practice of social distancing mask and PPE kit should be provided to workers so that they come back in offices and economic activity can start.
• Fiscal policy measures at the revenue side like deferring filing, reducing social contribution,.
• Monetary policy: cut policy raters providing liquidity to solvent banks.