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The Socio-Economic Implications of COVID-19 across the Globe

Updated: Dec 12, 2020

This piece highlights the global impact of the COVID-19 crisis both on countries across the world and on the lives of individuals. Since COVID-19 has spread globally, people have been affected by the virus itself and secondary impacts of social isolation, due to social distancing rules and quarantine. 


On a global level, COVID-19 has affected all nations, but it is evident that the impacts of COVID-19 will have a larger long-term impact on developing nations. On a national and local level, it is clear that the pandemic will disproportionately affect poorer communities in developing nations and those form a lower socio-economic background in wealthier nations, such as the U.S.. Complying with social distancing rules has been most difficult for those who are marginalized in society, for example, low income earners who cannot work from home and those who are socially isolated, living alone. In many cases, businesses have had to shut down leading to rising unemployment rates which will affect poorer communities in all countries across the globe. 



COVID-19 has not only exposed socio-economic disparities, but also racial disparities in healthcare and social systems across the globe. Racial and ethnic minority groups are being disproportionately affected by COVID-19 due to inequities in work, health and social conditions. In addition, as a result of COVID-19, racial groups have been further isolated from the health resources they need to prepare for the pandemic.  


This piece addresses all of these persistent socio-economic and racial inequalities and how they have been highlighted and exacerbated by the current pandemic. I argue that if COVID-19 proves uncontrollable, developing countries and marginalized communities, including those from lower socio-economic backgrounds, will be most impacted by the pandemic and any further lockdown measures that are implemented as a result of a resurgence of the virus.


Disparity in global economies 


The pandemic and resultant social distancing measures has affected global economies and it has also negatively affected several industries around the world, such as the financial, tourism, transport, and maritime sectors. With such a huge impact on the world economy, it is reasonable to assert that other domino effects will arise. For example, the tourism sector has been described as one of the hardest hit by the outbreak of COVID-19 and millions of jobs in the global travel and tourism industry are currently at risk. The impacts of this are being felt most strongly in the global south because developing countries depend on the tourism industry as a major source of income and continue to experience job losses due to industry decline. Many developing countries have limited social safety nets and income support programs to help individuals who experience a loss of income. This will make it difficult for many people in these countries to carry out basic functions, such as feeding their families. The negative impact of COVID-19 on the tourism industry is just one example of how the global south will be disproportionately affected by this pandemic. 


In a recent UN study, it was disclosed that global poverty could greatly increase and, in turn, eliminate the UN Sustainable Development Goals (SDGs) for ending poverty by 2030 as a result of the pandemic. As COVID-19 continues to have an impact on global poverty, vulnerable populations in developing countries are now struggling to access health services, water and sanitation facilities, and are experiencing severe food insecurity. Furthermore, funding the fight against the pandemic in the world’s poorest nations has been challenging because of other pre-existing humanitarian conflicts, including those triggered by natural disasters and climate change in countries such as India, Mozambique, Malawi and Zimbabwe. For example, since the emergence of COVID-19, millions of people in Malawi and Zimbabwe have lost their jobs and have been unable to access food systems as a result of the rising food prices.


Developing nations will find it particularly difficult to address a disease such as COVID-19 without assistance from the international community. The introduction of social distancing measures and travel restrictions has made it difficult for international organizations, such as the UN and other development organisations, to provide financial support and medical help in developing countries. However, the UN has made several efforts to work with global financial institutions such as the IMF to provide emergency funding opportunities to minimize the socio-economic impact of COVID-19. With the inability to access financial and humanitarian aid from international organizations, vulnerable populations will find themselves more susceptible to the spread of COVID-19 and its subsequent impacts. International institutions should work together to prioritize funding for developing nations and financially support local organizations that are currently focusing on humanitarian work.


Socio-economic disparities

Within nations themselves, including wealthier nations, the socio-economic effects of COVID-19 are very apparent and the effects of the economic crisis will be felt most acutely by vulnerable communities who have limited financial security. Nationwide lockdowns have been ordered in countries across the globe which has led to socio-economic losses, including unemployment, loss of income and therefore loss of access to basic things, such as food and housing. These impacts aren’t only being felt in the global south, but millions of people have also been left without jobs in developed countries, particularly those who were in insecure and low paid jobs that have been affected by the pandemic. Responses to COVID-19 from national Governments, need to concentrate on vulnerable communities that are mostly affected by the pandemic, including through the use of grant schemes or emergency grant payments that could help poor households and unemployed persons to continue to meet their needs.


Racial inequalities


It is evident that COVID-19 has tested many healthcare systems around the world, including their ability to serve often under-served and vulnerable populations. It has demonstrated major racial disparities in the healthcare systems, and that severe illnesses and mortality rates tend to be higher for racial and ethnic minority groups during public health emergencies. For example, numerous data reports have shown that African Americans are dying of COVID-19 at higher rates compared to white people in the U.S. and other Western countries. These racial health disparities have been speculated to be caused by higher rates of diabetes, hypertension and obesity among black people. There are also cultural and socio-economic factors at play, such as discrimination in receiving quality health care and inequalities that put people at the increased risk of COVID-19, with Black Americans finding it more difficult to access diagnostic testing and treatment for the virus due to location and financial instability.


The disproportionate effects COVID-19 has on black communities has brought a sharper focus to inequities and systemic racism. This is why it is not surprising that during the COVID-19 pandemic protesters around the world have been demanding an end to violence and oppression in Black neighborhoods. As well as being more likely to be affected by COVID-19 than white people, African Americans are also more likely to be stopped by the police or be incarcerated than white people. All of which has had a negative impact on Black people’s physical and mental health. During a health crisis, such as COVID-19, those who are targeted by discrimination and stigma can further feel isolated and unable to access the mental and physical health resources they need. This is why it is imperative that any national responses to the pandemic must center marginalized communities, including racial and ethnic minority groups.


Conclusion


This piece identifies the disproportionate socio-economic impact of COVID-19 on fragile economies and vulnerable communities, and also the heightened racial inequities present in healthcare systems. Simply put, impoverished and minority populations in both developing and developed countries have been disproportionately impacted by the pandemic. This piece points out how difficult it is for marginalized communities in different nations to adjust to the pandemic and access economic and social resources to respond to their needs. It is important that responses to the pandemic primarily focus on vulnerable and marginalized communities around the world to overcome the negative impact of COVID-19 and curtail any economic crisis.


As the virus keeps spreading rapidly around the world, it remains uncertain when things will return to normal. Economic challenges continue to emerge, and COVID-19 has plunged the global economy into a deep recession. Overall, the virus has a strong impact on both fragile and developed economies, leaving nations the opportunity to form an alliance with health organizations and come up with scaleable actions that will help reduce the risk of infection around the world.


Designing innovative policy solutions and introducing urgent measures, such as providing financial stimulus packages and supporting access to early detection of COVID-19, will help minimize any economic crisis and the effects on marginalized communities. To foster economic growth, nations need to ensure that immediate relief measures are extended to those who need it the most, which are developing nations, lower socio-economic communities, and those exposed to racial inequality. Community organizations and healthcare systems need to work together to dismantle cultural barriers by prioritizing health care resources that serve minority populations. A comprehensive economic response plan should be developed for the present and future lockdown to provide funding to support vulnerable and marginalized communities.

 

Tosin Ajogbeje

Tosin Ajogbeje is a public relations expert and award-winning spoken word artist who enjoys contributing to community ventures, creating spoken word video content, and blogging about pertinent societal issues. She holds a Master of Public Administration from Dalhousie University, a BA in Finance & Economics from Algoma University, and a Graduate Certificate in Public Relations from Niagara College.When she is not slamming at poetry events, she joins friends in a game of soccer, cools off at the gym and volunteers wherever she can.

Tosin is a recent published author of a spoken word style-book, Falling is a Gift, and continues to highlight social justice topics, self-help proficiencies and contemporary societal norms in her art work. She was recently awarded an Honorable Mention for Outstanding International Entry for the ideal female by a leading spoken word publisher—Button Poetry. She has received rave reviews for her spoken word poetry work in the St. Catharines Standard newspaper and Dalhousie University’s alumni online platform. To stay tuned to Tosin’s upcoming spoken word projects and new books, check her out on instagram below.


Follow Tosin on Instagram: @tosin_tajo

 


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