Economic Development - Midterm Exam

Economic Development – Midterm exam
Liza Mae P. Miranda BSA 11
Coronavirus Disease-2019 is a well-known pandemic virus that brought a massive

destruction to the health of every people around the world even in our own country, Philippines.
Due to the inclining positive and death cases, many countries demanded an enhanced
community quarantine wherein people cannot go outside their houses to avoid further social
activities since it is highly recommended by the DOH (Department of Health) to practice social
distancing.
The assigned country given to me is India. It is significant to not just enclose our minds
on the effect of this crisis on our country, doing this paper will be an opportunity to be aware on
how other countries fight coronavirus altogether.
There are 3 main macroeconomic variables that policymakers should try and manage
especial during this NCOV crisis and these are the; Inflation, Economic Growth and
Unemployment.
Location Confirmed Cases Recovered Deaths
For further information, a table is shown above to represent the current COVID-19
status update on the ongoing crisis in India. The total number of novel coronavirus cases in India
shot past 20,000 during these times. At least 1,486 fresh cases emerged in the last 24 hours,
taking the Covid-19 count in the country to 21,700 active cases. With 49 deaths recorded since
yesterday, the toll now stands at 686. Apart from that, there are at least 4,325 patients who have
been discharged or cured from the highly contagious disease and one has migrated from the
country.
Here are also some pictures that depict how India copes up with this pandemic crisis:
Unemployment
Due to the COVID lockdown, early estimates of jobs data indicate that the coronavirus
effect may have left a devastating impact on the economy in India, sending urban
unemployment rate soaring to 30.9%. Overall unemployment rose to 23.4%.
Also, according to the united nations news, about 400 million people working in the
informal economy in India are at risk of falling deeper into poverty due to the coronavirus crisis
which is having ‘catastrophic consequences’, and is expected to wipe out 195 million full-time
jobs or 6.7% of working hours globally in the second quarter of this year, the UN's labour body
has warned.
The International Labour Organization (ILO) even labelled coronavirus pandemic as "the
worst global crisis since World War II in India. Since the COVID-19 pandemic is having a
catastrophic effect on working hours and earnings, there is an eventual increase in
global unemployment during 2020 will depend substantially on future developments and policy
measures. There is a high risk that the end-of-year figure will be significantly higher than the
initial projection of 25 million and there will be a sudden loss of income during the crisis.
Based on the report, 1.25 billion workers employed in the sectors identified as being at
high risk of "drastic and devastating" increases in layoffs and reductions in wages and working
hours. Many are in low-paid, low-skilled jobs which are devastating to find a cost for living.
One way to resolve this variable problem is a large-scale, integrated, policy measures
were needed and supporting enterprises, employment and incomes, protecting workers in the
workplace and using social dialogue between government, workers and employers to find
greater and faster solutions.
Deflation
India has been proactive and leadership has been courageous to go to extremes For a 1.3
billion-people country, the virus-positive and death cases seemed too low to warrant a drastic
action. The developed world finds this too good to be true. But people living in India can
resonate with the truth as we have not heard of any hospitals getting overwhelmed or people
dying unattended of fever or shortness of breath. India’s democratic social media won’t spare
any such cases. Now with the lockdown, we reduce the risk to an even lower level, ensuring
high probability of normal life even with the crisis going on and that includes needs of daily
basis such as foods, water etc. which people can buy on market places.
Accordingly to the Reserve Bank of India (RBI), countries across the world are bracing
up for deflationary forces to take hold. India may not be immune to these extreme downside
pressures imparted by the pandemic but “While inflation has peaked and vegetable prices are on
the ebb, the impact of COVID-19 on inflation is ambiguous relative to that on growth, with a
possible decline in prices of food items being offset by potential cost-push increases in prices of
non-food items due to supply disruptions.
Economic growth
India is considered to be a Third World country and is also a developing country this
2020. India has a high poverty rate, corruption, an out-dated caste system, and other significant
issues that have stunted its development.
As India is one of the fastest-growing economies in the world, poverty is on the decline

in the country, India's share of world GDP will significantly increase to 8.5% this 2020. Due to
the impact of COVID-19 on the country's economy during this period was an estimated GVA
loss of over 9%. These estimates came after the government's aid package announcement of 1.7
trillion rupees.
Development Bank (ADB) states that growth in India will remain subdued after the
country suffered a sharp slowdown last year, from 6.1% in fiscal 2019 to 5%. However in its
Asian Development Outlook (ADO) 2020, this reported that Gross Domestic Product (GDP)
growth in India is forecast to slow further to 4% before strengthening to 6.2% in the next fiscal.
Government Implications
Their government is entering a stage where mass-testing will become critical in the fight
against Covid-19. Given the varied size and density of population across areas, it would be
impossible to rely only on public facilities to ramp up testing.
Yes, several countries are now dealing with large clusters or community transmission.
Some countries are struggling with a lack of capacity, resources and a lack of resolve.
I may suggest to them increase their funds in terms of this crisis by outsourcing to other
countries or maybe selling some assets of their government. Also since their country has a high
percentage of poverty, these funds may also be allotted for donations to those unfortunate
people. It is important to provide free mass testing to all of the people to be more secured. They
should also strengthen their securities during this lockdown since the positive cases keeps on
rising and also remind themselves that violence is never the answer to properly handle their
people. People, either rich or poor, still have human rights. I also suggest suspending online
classes for students since not all families are privileged. Government should prioritize the well-
being of the students rather than putting them in pressure to catch up to the lessons during while
everyone else is dying.
Also government should remind their fellow people that this is not just a public health
crisis, it is a crisis that will touch every sector – so every sector and every individual must be
involved in the fight and have unity. Restrictions are nothing without obedience of people.
Countries must take a whole-of-government and whole-of-society approach, built around

a comprehensive strategy to prevent infections, save lives and minimize the impact of virus
since there are no cure yet for this disease.
Altogether, we can end this crisis and let us be that hope! Trust that there will be a fresh
start after this pandemic crisis!
References:
https://www.mygov.in/covid-19
https://www.livemint.com/news/india/covid-19-lockdown-impact-unemployment-rate-rises-to-
23-4-11586202041180.html
https://economictimes.indiatimes.com/news/economy/indicators/about-400-million-workers-in-
india-may-sink-into-poverty-un-report/articleshow/75041922.cms?from=mdr
https://economictimes.indiatimes.com/markets/stocks/news/covid-19-to-accentuate-growth-
slowdown-impact-on-inflation-ambiguous-rbi/articleshow/75060578.cms?
utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
https://en.wikipedia.org/wiki/Poverty_in_India
https://www.thehindubusinessline.com/economy/covid-19-impact-adb-expects-indias-
economic-growth-to-slow-down-to-4-per-cent-in-fy21/article31243955.ece
https://www.statista.com/statistics/1107798/india-estimated-economic-impact-of-coronavirus-
by-sector/
https://economictimes.indiatimes.com/news/politics-and-nation/view-mass-testing-has-become-
imperative-for-india-at-this-juncture/articleshow/75036057.cms?
utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
https://news.un.org/en/story/2020/03/1060132
https://www.altnews.in/social-distancing-is-imperative-but-14-hour-janta-curfew-will-not-
break-the-cycle-of-infection/

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Economic Development – Midterm exam

Liza Mae P. Miranda BSA 11

Coronavirus Disease-2019 is a well-known pandemic virus that brought a massive

Location Confirmed Cases Recovered Deaths

As India is one of the fastest-growing economies in the world, poverty is on the decline

Countries must take a whole-of-government and whole-of-society approach, built around

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