Coronavirus set to scar world economy for decades amid an uneven, unequal recovery, observers say

‘All told, the decline in gross domestic product last year was the biggest since the Great Depression. The International Labour Organization estimates it cost the equivalent of 255 million people full-time jobs. Researchers at the Pew Research Centre reckon the global middle class shrank for the first time since the 1990s.

‘The costs will fall unevenly. A scorecard of 31 metrics across 162 nations devised by Oxford Economics Ltd. highlighted the Philippines, Peru, Colombia and Spain as the economies most vulnerable to long-term scarring. Australia, Japan, Norway, Germany and Switzerland were seen as best placed.’

Read here (South China Morning Post, Apr 18, 2021)

The ‘saviour’ loan apps that trapped pandemic-struck Indians

‘The apps proliferated as the pandemic and the lockdown left millions in India jobless. While many working class jobs have returned, salaried professionals - from engineers and software developers to salesmen - and small businesses have struggled to survive. So the apps helped them out when they needed money quickly.

‘For loans as small as $150 and for periods as short as 15 days, these apps charge a one-time processing fee, a convenience fee and steep interest rates - some as high as 30%. Compare this to to Indian banks, which lend at 10-20% with a tenure of at least 12 months.

‘Like many other apps, at the time of download, these apps too ask for permission to access contacts and photo galleries. When an unsuspecting borrower agrees to this, they become more vulnerable.

"When I investigated one such case, I found that these apps are actually not only able to read and access your contact list, they're also capturing your images, videos and location. They also know many things about you - like, where you have actually used this money, to whom you have transferred this money," says cyber security expert Amit Dubey.’

Read here (BBC, Feb 13, 2021)

The essential but invisible trade: TRAFFIC sounds alarm over sustainability of wild plants used to treat Covid-19

‘Wild plant species used in herbal treatments of Covid-19 are set to come under heightened harvesting pressure, both as a result of increased demand and because of more people turning to wild harvesting as an alternative source of income during times of high unemployment and economic crisis. The future availability of plant ingredients to support human health—through medicines, food and well-being products—is dependent on prioritising the conservation and sustainable use of their source species in the long-term.’

Read here (Traffic, June 18, 2020)

Young women among worst hit by coronavirus job cuts

‘Social security Institution Kela received more than 120,000 unemployment benefit applications between mid-March and the end of April, more than three times the number of applications during the same period last year. This is according to Helsinki Graduate School of Economics (GSE)'s analysis that combined Kela's application data with taxpayer's information on the applicants' professional background. According to the results, young women aged 20–24 make up the majority of Kela's unemployment benefit applicants.’

Read here (UUTISET, May 7, 2020)

Historic financial decline hits doctors, dentists and hospitals — despite covid-19 — threatening overall economy

‘Most elective surgeries nationwide were postponed beginning in mid-March. Dentists offices were closed. Physicians stopped seeing all but the sickest patients in their offices. Stay-at-home orders didn’t just prevent people from dining in restaurants — they led people to avoid medical services, too, amid concerns about the disease the virus causes, covid-19. More than 200 hospitals, including Children’s National Hospital in Washington, have furloughed workers, according to a tally by Becker’s Hospital Review.’

Read here (Washington Post, May 4, 2020)

ILO: As job losses escalate, nearly half of global workforce at risk of losing livelihoods

‘The continued sharp decline in working hours globally due to the COVID-19 outbreak  means that 1.6 billion workers in the informal economy – that is nearly half of the global workforce – stand in immediate danger of having their livelihoods destroyed, warns the International Labour Organization.’

Read here (ILO, April 29, 2020)

Malaysia’s youth on the unemployed frontline: Five additional measures to effect reform

Story by Bridget Welsh & Calvin Cheng

‘These [existing] measures [to address the problems of youth unemployment] however are not enough. There is an urgent need to engage in meaningful reform to address underlying issues to ameliorate the negative impact of Covid-19. In keeping with our aim to offer constructive suggestions to address Covid-19, we offer five additional concrete ideas for consideration.

• First, the government can strengthen private-public sector partnerships through incentives to hire, retain and train young employees.
• Second, the government should consider ramping up training for younger Malaysians, not just those in the Klang Valley, but those in the states hardest hit by youth unemployment.
• Third, a rethink is needed on how to aid those young workers stuck in the low-paying jobs, with possible structured tax incentives for companies that offer training and advancement for employees to hire young workers who show promise.
• Fourth, while there have been important reforms in encouraging student debt repayment, including incentives for repayment, Covid-19 may provide an opportunity to consider broader measures of student debt relief based on need and debt restructuring.  
• Fifth, we need to appreciate that the social safety net in Malaysia is inadequate. The relief measures are tiny, compared to the scale of the economic downturn coming ahead, and the reality of being experienced now by those facing insecurity. 

Read here (Malaysiakini, April 18, 2020)