Socio-Economic Implications of COVID-19 Pandemic in South Asia: Emerging Risks and Growing Challenges.

Golam Rasul,Surendra Joshi,Abid Hussain,Apsara Karki Nepal,Eklabya Sharma,Amina Maharjan,Anu Lama,Prakriti Gurung,Farid Ahmad,Arabinda Mishra

doi:10.3389/fsoc.2021.629693

Golam Rasul, Surendra Joshi + Show 8 more

Open Access

https://doi.org/10.3389/fsoc.2021.629693

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Abstract

The dramatic spread of COVID-19 has threatened human lives, disrupted livelihoods, and affected trade, economy and businesses across the globe. The global economy has begun to show major disruptions and is heading toward a severe recession with an unprecedented economic crisis. As the global economy is highly integrated and interdependent through the global supply chains, it has been profoundly affected by the COVID-19 pandemic. Although all countries have faced difficulties due to Covid-19, South Asian countries in particular have had to deal with a more challenging situation due to their large population, weak health facilities, high poverty rates, low socio-economic conditions, poor social protection systems, limited access to water and sanitation, and inadequate living space, necessary to maintain physical distancing and take other required measures to contain this pandemic. To contain the spread of the virus, South Asian countries have imposed stringent lockdowns, which have consequently affected the lives and livelihoods of millions of people in the region, where a third of world’s poor live. Against this backdrop, this paper examines the existing and prospective impacts, risks and challenges of Covid-19 on key social and economic sectors including migration, tourism, informal sector, agriculture and rural livelihoods. The analysis revealed that COVID-19 is likely to affect economic growth, increase fiscal deficit and monetary burden, increase the risks of macroeconomic instability, decrease migration and remittance, reduce income from travel and tourism, and result in dwindling micro-small and medium industries and informal businesses. This is likely to deepen poverty and increase unemployment and the risks of hunger and food insecurity. If not addressed properly, this may reinforce existing inequalities, break social harmony, and increase tension and turbulence. The economic and social costs of the COVID-19 outbreak are therefore likely to be significant and long-lasting in South Asia.

Highlights

The escalating spread of COVID-19 has posed the gravest threat to the world economy and to lives and livelihoods
This paper briefly examines the following questions: What are the existing and prospective economic impacts of COVID-19 pandemic in South Asia, what are the challenges and issues faced by the poor vulnerable population, and what are the likely impacts in the near future—short, medium and long-term? How the economic sectors like, migration, tourism, the informal sector, and agriculture and rural livelihoods will be affected by this pandemic? What are the key measures and actions taken by South Asian countries to address these challenges? What policy
COVID-19 has disrupted agricultural operation in the South Asian region because of shortages of labor and inputs, as shutdowns extended to rural areas, village roads, transportation and marketing of goods, all to control the movement of people in order to effectively curb the spread of the pandemic

Summary

INTRODUCTION

The escalating spread of COVID-19 has posed the gravest threat to the world economy and to lives and livelihoods. COVID-19 has disrupted agricultural operation in the South Asian region because of shortages of labor and inputs, as shutdowns extended to rural areas, village roads, transportation and marketing of goods, all to control the movement of people in order to effectively curb the spread of the pandemic. The governments of South Asian countries have responded promptly and adopted several policy measures to contain the spread of the COVID-19, support the poor people to ensure food, and provide stimulus to economic sectors. The Government of Afghanistan allocated US$ 15 million to contain corona virus; the Government of Bangladesh allocated US$ 29 million to fund the COVID-19 preparedness and response; the Government of India allocated US$ 22.6 billion to provide essential food items, health facilities, fuel and direct cash to support the poor people and senior citizens; and the Government of Pakistan introduced a relief package worth US$ 7 billion for three months. It is heartening that Benapole- Petrapole land border between Bangladesh and India has opened recently after three weeks of lockdown to facilitate movement of people on emergency ground (ICIMOD, 2020)

CONCLUSION AND POLICY RECOMMENDATIONS

Findings

DATA AVAILABILITY STATEMENT