John Giorgi explains with the spread of Covid-19, all across the world, health services got overwhelmed. Moreover, global economies are falling into an unprecedented recession. International authorities are of the view that the year 2020 has experienced a slowdown in the economy. Whether or not the same will continue in the following year is yet to be analyze. In addition to this, informal sector workers and people belonging to low-income groups got severely hit by the virus. Studies reveal that around four hundred million individuals on a national basis are at the risk of sinking deeper into recession.
The pandemic has reiterated the link between the environment, health, and the economy. The devastating effect of the virus on the economy has created havoc in the global economy. Hence, it is worth reflecting that different systemic actions become mandatory to shift towards a resilient and sustainable economy.
John Giorgi shows the path of regaining the economy
As mentioned earlier, the interrelation between COVID-19 and devastating economy requires no explanation. Hence, it is imperative to take steps for regaining the economy in the following manner
• Developing sustainable infrastructure:
one very effective way of boosting economic activities and creating jobs is by investing in infrastructure. However, people have reservations regarding the kind of infrastructure in which they must invest? Studies reveal that when governments invest in green measures, it helps in giving a boost to the economy. They must devise recession-recovery packages.
Also, you must invest in public transport and clean energy. It will help in creating more jobs than conventional investment methods. Hence, countries must take steps to increase their renewable energy resources with the help of appropriate policies. Additionally, you must develop business models and decentralize powers to spread critical services across sectors. According to John Giorgi, adopting green methods in public transportation will reduce air pollution along with traffic congestion. It requires closer coordination with electricity sectors and a focus on vehicle charging infrastructure.
• Building resilience:
many individuals have an informal source of employment. It encompasses those sectors which do not provide perks that are a part of organized sectors. The population belonging to this category is extremely vulnerable to economic upheavals. They require considerable access to social safety and formal credit. It includes pension schemes and insurance. Apart from the employment guarantee, people must get the universal basic income and other projects available in the organized sector. For this, investing in health and education becomes imperative. When the health and education sector gets expand, it creates a rich human resource of an economy.
• Fiscal mechanism:
one very logical way of supporting resilience and recovery is by using monetary tools. The government must take steps to explore avenues in promoting small and medium enterprises. The various sectors require immediate financing for dealing with wage bills. For this, the government must infuse into the region to help the same to rebound.
Hence, you may ascertain that you can help the economy relapse by taking small and practical measures. In this way, you will regain power and fight back against the global crisis.