Dear Nedim Čelebić ,
Undoubtably, there will be a renaissance of economics post covid crisis. There are a plethora of aspects of economy that will have to adapt, improve and innovate. I will mention just one - inventory management system - for decades businesses (predominantly manufacturing companies) have been (successfully) using a just-in-time inventory concept. That concept worked great until the global disruption occurred. Manufacturing processes literally stopped and froze because they lacked one or two pieces of key raw materials or components. I'm expecting to see a considerable drop in inventory turnover and other inventory management metrics. How successfully will companies balance satisfactory inventory levels and cost of inventory in the future ? - it remains to be seen.
regards
Las áreas de la economía que requieren políticas y estrategias son: Economía conductual, economía circular, economiza social (Finanzas sociales), necesidad de modelos prevención de crisis, unidos con salud pública, ecológica y la cultura financiera, necesidad de trabajos en equipo a nivel internacional bajo una planificación estratégica, prospectiva, con cultivo de valores, trabajo en la sensibilización dell ser humano hacia una verdadera humanización.
Due to the development of the SARS-CoV-2 coronavirus pandemic causing Covid-19 disease, the processes of digitization of the economy have accelerated. These processes activate innovation in specific areas of economic activity, currently mainly in the fields of information technology applications. Currently (the end of April 2020) in many industries and sectors, more and more companies are developing their activities via the Internet, remotely providing their services and selling their products under e-commerce. Many companies that did not do this before now switch to remote activities, carried out electronically via the Internet. The dynamics of digitization processes in various areas of business entities activity is currently accelerating strongly. The changes are so dynamic that at present it is difficult to predict what the scale of the digitization of the economy will be, not only in a few years but even in a year. The processes of implementing ICT, Internet and Industry 4.0 information technologies into various spheres of business activity, into companies, enterprises, institutions, etc. representing various sectors and branches of the economy have been taking place for many years. However, there have been several periods of acceleration of these processes in the past. The previous period of this type was, for example, the end of the 1990s, but then the dominant sources of the then acceleration of the implementation of Internet technologies in business operations were slightly different than at present. However, the current sources of the acceleration of these technologies to economic processes and not only economic, but many areas of human life, are associated with specific activities and anti-pandemic instruments used, primarily with the recommendation of staying at home in home quarantine. Digitization of the economy is currently taking place simultaneously in many areas of economic processes and in the functioning of many economic entities and public, financial and other institutions. The importance of Internet marketing, including innovative solutions of viral marketing, Real-Time marketing conducted on social media portals is increasing. The development of electronic banking is also increasing, including online and mobile banking. Customer activation techniques are being developed to switch to remote service solutions as part of the financial services offered. To this end, innovative electronic payment solutions are also used as part of mobile banking, e.g. contactless payments with a smartphone replacing the payment card. However, at present, due to the development of the SARS-CoV-2 Coronavirus pandemic, this development, i.e. the development of electronic economy, online and mobile banking, e-commerce, etc. has accelerated strongly. It is also associated with many puzzles regarding the development of the SARS-CoV-2 Coronavirus pandemic in the following months and perhaps also years. There are still many questions that we currently do not know the answer to about effective medical therapies for the treatment of Covid-19 disease, the development and termination of a pandemic in the following months and years, the impact of this virus on the daily lives of people in the following years, etc. All these factors may change in the future also business models and development strategies used by enterprises. The changes are so dynamic that at present it is difficult to predict what the scale of the digitization of the economy will be, not only in a few years but even in a year. In view of the above, when in a few weeks or months the SARS-CoV-2 Coronavirus pandemic will expire, it is currently accelerating the digitization processes of the economy, including many companies, institutions, etc. will continue to operate. Therefore, many new innovations in the field of ICT, Internet and Industry 4.0 information technology applications will be created for various spheres of business activity, companies, enterprises, institutions, etc. In addition, innovative medical therapies, life science technologies will be created, security systems will be improved anti-pandemic and sanitary control, and in other areas of public security.
Greetings,
Dariusz Prokopowicz
In my opinion we should focus on providing mechanisms for escaping and recovery from the crisis. The crisis will be multidimensional: health crisis, social crisis and huge economic crisis. All of the areas require new approach in many aspects. It is, however, very general answer. After one or two years we will know much more what requires the fastest interventions, e.g. international production processes, government debt issues, banking sector or may be the probem with social inequality... In my opinion the time after the pandemia will be very different and almost every aspect will require new approach.
The economic costs of COVID-19 are prohibitive. In the case of fragile economies, the possibility of a recession is high against the backdrop drop of huge revenue shortfalls, leading to fiscal constraints. Therefore, they will likely embark on aggressive borrowing, at least for the next two years, which will expose them to increased risk of debt distress. Again, businesses are not doing well, posing high unemployment risks.
Thus, these countries must adopt innovative ways of doing things to enhance the resilience of their economies against future exogenous shocks. One way to do this is to apply their limited resources to sectors where they have comparative cost advantage. African countries, for example, should consider adopting policies towards deepening the entire agriculture value chain. The policies should target improved domestic agriculture productivity, as a means of reducing food imports and ensuring constant supply of raw materials to local industries. If the programme is administered in a sustainable manner, it will create employment opportunities, ensure food self-sufficiency, reduce food imports and mitigate foreign exchange market turbulence, enhance revenue performance, ensure inclusive growth, among others. They can even leverage on the huge potential of the agriculture sector to diversify their economies.
The tourism and services sectors are particularly vulnerable and they need sustained support for a longer period.
The human factor remains the demand and axis of the economy in the world and in light of the sudden cessation of the real economy and therefore a significant decline in the levels of supply and demand, all of this shows us that the quality of health is a key factor in raising production rates and maintaining their growth, therefore ,attention must be paid to the health sector.
I think there should be a far greater focus on our natural environment and greater respect for nature and all that it gives. Big business has continued to abuse our natural world, building sky scrapers from resources that are depleting and cutting up places like the Amazon Jungle and the barrier reef simply to make more money. The natural world and our environment protects us and provides physical and mental well-being. I hope this can be a real focus post pandemic.
The focus should shift to a sustainable economy with the environment, climate change and social equality as the primary issues.
In many countries the situation in health sector was in a very bad condition. I expect many changes, but not in the meaning of innovations, but in the meaning of higher governement support and better organization (management solutions).
Types of economic activities, sectors and branches of the economy in which accelerated development will be noted after the current economic crisis caused indirectly by the SARS-CoV-2 Coronavirus pandemic (causing Covid-19 disease) will probably be many and there may be many surprises in this matter. These will be the branches and sectors of the economy in which, after exiting the economic crisis indirectly caused by the Coronavirus SARS-CoV-2 pandemic, most economic entities will record the highest level of business profitability and a decrease in debt caused by the economic crisis. These sectors and branches of the economy will include those in which sales via the Internet, e-commerce and the use of ICT and Industry 4.0 information technologies in business operations are currently growing strongly. In addition, after the current economic crisis, innovations in medicine, life science, biotechnology, ecological innovations, innovations in internet marketing, in energy based on renewable energy sources, in electromobility, recycling automation, applications of artificial intelligence in computerized systems for managing complex economic processes should develop. improving predictive analytics through the development of Big Data Analytics technology, biotechnology innovations used in the development of organic farming, innovations in the creation of biodegradable materials replacing plastic in packaging, innovations in technology of energy transmission and storage, building installations for obtaining water in areas covered by permanent drought, acquisition technologies, filtration and collection of rainwater, technologies that allow improving waste segregation techniques and reducing the amount of waste not subject to own processing, development of applications of the Internet of Things technology in communication, smart technology, nanotechnology, molecular biology, environmental engineering, etc. It is the direction in which economic processes will go in many branches and sectors of the economy after leaving the current economic downturn, it will be largely determined by factors such as:
- models of state aid used for enterprises in crisis; the scale of financial assistance used and the impact on the debt of state finances; will the anti-crisis instruments of socio-economic policy programs be analogous to those used during the activation of economic processes after the global financial crisis of 2008, or will they be more thought-out and adapted to the specifics of the current crisis derived from the development of a pandemic,
- the scope of the increase in pro-ecological awareness, a healthy lifestyle, the need to take care of the natural environment, the development of nature protection programs, undertaking pro-ecological reforms to reduce greenhouse gas emissions and slow down the global warming process, the need to reduce the scale of environmental pollution, the implementation of sustainable development principles into economic processes, the need to develop the circular economy / green economy concept, etc.
- transformation of economic processes to increase the scope of application in business ventures, business models of enterprises, issues of corporate social responsibility and business ethics.
Greetings,
Dariusz Prokopowicz
it seems that leisure and tourism industry needs innovations for further development
I think will be need a redirecring resources in health sector to prevention, using tecnologies like predictive intelligence and big data, wich is low cost than the reaction strategies.
Tourism will need a huge innovation, because have been maybe the most afected sector in this crisis.
In week economies in wich informal sector is so big, will need innovation in fiscal matters, social security and sanitary measures.
I think the productive sector requires more attention than any other sector.
The productive sector of vitaly important products and instruments (such as agricultural products, etc.) as well as health sector and social security - inspite of that the latter is usually not considered by neoliberals as an area of economy. You need to apply the holistic approach to society in order to understand that private and public sectors together form an economy, and that GDP is the result of purely and only the private sector and does not show the whole picture.
Real sector rejuvenations for massive job creation for a lot of people that are out of gainful employment, and adequate investments in health infrastructures.
To encourage discussion of the economic impact generated by the SARS-CoV-2 virus, and the control measures taken at the international level, we invite you to read the following article.
Economy or Health, Constant Dilemma in Times of Pandemic: The Case of Coronavirus Disease 2019 (COVID-19). Journal of Pure and Applied Microbiology, 2020. DOI: 10.22207/JPAM.14.SPL1.07
Article Economy or Health, Constant Dilemma in Times of Pandemic: Th...
By looking at the current situation in the world, basically, I feel its not the area that is to be focused. The good cultural practices have to be borrowed from each countries ( Best practices w.r.t. social distancing, greeting each other without hand shake etc). And coming to your question, alternate medicines such as Indian Ayurveda and Germans Homeopathy has to take this opportunity as a topic for research and work hard to overcome such diseases in future. Finally, by looking at the present situation, it can be judged that innovative Medical field can increase the economy of that particular country.
Dear Nedim,
I believe there will be potential and key research studies on the financial regulatory ecosystem as related to the Covid-19 health crisis.
For instance, the Financial Stability Board (FSB) that coordinate financial rules and regulatory issues as related to the G-20 economies has issued lately reports to address the financial stability implications of Covid-19.
This is the link to their latest reports:
https://www.fsb.org/
Though most stock markets (and oil prices) have nosedived recently, the transitory effects will have prolonged impacts on economies and companies’ earnings because of Covid-19 pandemic and health crisis.
This is also evidenced by the fact that the Fed decreased very recently interest rates to zero levels and the markets keep nosediving. This is an indication that markets are already far sighting and factoring the long-term impacts of current world events because of Covid-19 pandemic and the resultant health crisis.
I am afraid, but current world events will have major impacts on countries and companies’ earnings, which will definitely led to many bankruptcies worldwide.
The recovery from the economic impact of the Covid-19 health crisis will take lot of efforts and prolonged period of time.
I hope it is useful
Best regards
Prof. Dr. Mazin A. M. Al Janabi
Full Professor of Finance & Banking and Financial Engineering
EGADE Business School, Tecnologico de Monterrey,
Santa Fe Campus, Mexico City, Mexico.
Three sectors 1. Health system 2. Research 3. Economy. if your health system is good then you can control any disease. but without research, you cannot develop a health system. for all, you should be economically sound. In my personnel view, Korea is a good example.