Question

what are the short and long run impacts of a lockdown on the countries' current economy.(in Saudi Arabia as an example).

Answer 1

The world today faces the crisis of covid 19, with countries facing an all time low in economies, a direct result of the lockdown. Lockdown is a public notice released by the ruling administration, directing people to restrict movement outside their current base, stopping all activities . The activities are being stopped in the light of realisation that countries must direct the people to not gather around in crowd , as covid 19 spreads though air or touch of infected .

Having understood the conditions of the working environment, economies are taking hit at different levels. Some of the segregations are done as follows:

1. Developed countries: These countires, like US, having sufficient funds to sustain an efficient and appropriate living standards for most of it's people are facing a comparitive lesser hit on the average of it's masses for now, as they rely on heavy stolks of goods prevelant around.

Although in these countries, economics might not be taking as high a hit, the death rates are the highest around the world, eg. US, china, italy.

2. Develping nations: Countries like India , are facing a crisis especially in the job sectors. The people around are unemployed and this is predicted to rise. In addition due to low savings and peoples dependence on day to day wage, the migrant workers are the worst hit of all time. The savoings are getting exhausted, and such economies might take a long time to jump back.

3. Under-developed nations: These are he nations who are the worst hit. With almost no savings and meager funds of the administration, the spread is high, crises is higher. Lack of basic supplies like food shortage is hitting. This is a time of crisis and world organisations must put greater effort helping the most vulnerable nations.

These are short run analysis of these nations. The short run scenarios may be different , depending on factors ike savings, per capita income and purchasing power of individuals on an average. but in long run, with dependence of globalisation across every countries, these economies need a plan to come out of the global recession which will follow after some ime has passed.

Some other divisions of categories can be import and export oriented countires. Countries like Saudi Arab, where economy works on crude oil, and demand falling to an all time low, economy has faced major losses in the short run. If the world shifts to renewable resources in the long run ( as this pandemic is going to act as a catalyst to the process), long run losses are certain. But for now, the future is not in a slump yet for  these nation
( OIL exporting nations).

On the other hand importing nations, which takes in consideration almost every country in different parameters, will face shortage of resouces in long run. If respective administration comes up with solutions and innovations or substitutes of the imported goods, the situation can be turned to a boom , with a long term employment generation as a bonus of innovation. B ut the chances of this remains very less ,a s nations are spending most og it;'s reserves to get out of the pandemic. Life of people is the priority on every list.