Countries are under much more pressure to get back their economies any time soon with the huge devastating effect of COVID-19. It’s becoming obvious for developing countries and their leaders, especially in African, of how negligent and irresponsible they have been in managing their economy.
The economic pressure is more on some sectors of the economy. When you review the economic outlook of countries in African, especially the so-called giant of African Nigeria, one could feel this unending struggles to sustain their economies and manage the impact of pandemic. However, does it get better? There was a time the leaders were in a better position to do the needful for the economy, rather than now they are adopting different measures to curb the economic pressure that could possibly affect the economy in the nearest future.
Now, these governments are attempting to exploit the fear and disruption of the coronavirus epidemic to push off the consequences of their decades of reckless, irresponsibility and culpably dishonest economic policies. Decades economic mismanagement, misappropriation and corruptions that have eaten deep into the economy.
In these countries, you see short-term financial problems that are tied to the epidemic and the imposition of social distancing, lost tax revenue prominent among them. With businesses forcibly closed and unemployment soaring, there is less money coming into coffers. Although some countries are better prepared for the “rainy-day” than others, the question is, how far can this wave of the pandemic impact the economy.
This has inspired a great deal of benchmark for performance measurement for most countries, for those that really care and ready to fix the mess for good. As one gentleman I respect so much would say,
The thing about unforeseeable circumstances is, they’re unforeseeable. Nobody knows which days are going to be rainy, though we do know with a reasonable degree of confidence how many rainy days there will be in a year or a five-year period. Responsible people and governments save up for emergencies — even if they do not know what the emergency is going to be.
The world Economic Outlook report by the International Monetary Fund for April 2020, Ch. 1. Titled. ” The Great Lockdown” says,
The COVID-19 pandemic is inflicting high and rising human costs worldwide, and the necessary protection measures are severely impacting economic activity. As a result of the pandemic, the global economy is projected to contract sharply by –3 percent in 2020, much worse than during the 2008–09 financial crisis. In a baseline scenario–which assumes that the pandemic fades in the second half of 2020 and containment efforts can be gradually unwound—the global economy is projected to grow by 5.8 percent in 2021 as economic activity normalizes, helped by policy support. The risks for even more severe outcomes, however, are substantial.
Effective policies are essential to forestall the possibility of worse outcomes, and the necessary measures to reduce contagion and protect lives are an important investment in long-term human and economic health. Because the economic fallout is acute in specific sectors, policymakers will need to implement substantial targeted fiscal, monetary, and financial market measures to support affected households and businesses domestically. And internationally, strong multilateral cooperation is essential to overcome the effects of the pandemic, including to help financially constrained countries facing twin health and funding shocks, and for channeling aid to countries with weak health care systems.
This roughly painted the picture, even though it is based on available data as things unveil. What matters is the effective policies governments are seriously ready to undertake as things unveil and not the usual corruptions and selfishness on the part of our leaders.
Click the link for the Press Briefing: Regional Economic Outlook: Sub-Saharan Africa, April 2020