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Impact of Covid-19 on the Economy; Creating A New World Order

The pandemic brought a new order to world economics, and created a new socio-economic equilibrium. It showed to the world no matter how developed or developing we are, none of us are ready to face emergencies.

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In the past few years, global trade growth has been lower than global GDP growth. It is for the first time since World War II that such a situation has arisen, marking a turning point in the global economy, with sweeping implications for countries, companies and consumers. CoVid-19 marks the beginning of new world order, in a matter of weeks   the entire world economy has come to a standstill. The pandemic brought a new order to world economics, and created a new socio-economic equilibrium. It showed to the world no matter how developed or developing we are, none of us are ready to face emergencies.

Decentralised Supply Chain: It is an old saying that don’t put all the eggs into a basket, one of the major fallouts due to CoVid-19 lockdown in China resulted in total collapse of Supply Chain, the delays resulted in huge losses, and by the time goods reached various ports, most of the countries went into a lockdown mode. This scenario has woken up companies and brands to look at alternative means of supply chain, by decentralizing supply chains to various localities, geographical locations around the world. This means there will be a new order in distribution and manufacturing, shifting from Chinese dependency. Local buys, artisanal products and home-grown manufacturing would create new ‘Economic” borders justified under trade protection programs. Global economy would leapfrog into local economies of scales and ‘Make in India’ would get a boost.

Significant Change in Skills at bottom of the Pyramid: Role of small & medium players have been significant in economic development of a country, and situations like CoVid have resulted in closure of many traditional businesses. Local manufacturers, travel, tourism, non-essential commodities have taken a massive beating, whereas demand for the commodity, medicare and other products have gone sky-rocketed. The current crisis has affected the meat & poultry industry, and this will create a significant rise in vegetarian and vegan food resulting in a boom of agrarian economy. The net result will be a loss of many conventional industries and skills, resulting in migration to new skill sets for future industries.

Creative Economy-Shift of World Axis: It is said that ‘necessity is the mother of all invention’, and the world would find a creative solution from its greatest depression to bounce back from being too ‘Fast & Furious’ to ‘Slow’, ‘Green’ and ‘Clean’.  The  industry would find new means & ways of measuring competitiveness, which are  holistic and not driven by sheer numbers. Futuristic industries would focus on

creativity, IPR’s and new methodologies of minimalism. The planet and ‘Global Warming’ would be  a  renewed focus, and industry would work towards ideas that  bring cleaner air, water and natural resources, improving overall quality of life, while helping billions of animals across the world to regenerate and revive. There are many things money can’t buy, and these are amongst these priceless resources the world has!

Herb Immunity:
As the current scenario sees the UK calling for herd immunity, the concern is to boost mass-immunity. People rather than opting for medicinal consumption/vaccinations would explore ancient/traditional ways of immunity building  to fight such uncertainties in future through herbs, naturopathy, Ayurveda, and the knowledge of traditional use of plants and herbs. There is likely to be a rise in the trend for organic lifestyle rather than a sanitized lifestyle. Most of Indian population even today has no access to sanitizesr or soaps, but they use local clays, ash or other relevant resources and material to keep hygiene and building immunity. The demand  for natural products and herbs will help in building new industries that have sustainable outlook and are less prone to seasonal diseases.

Reconnect: Covid has created a new social order, reuniting families despite the isolation caused by digital means. The new technology through social media and digital interface like video calls etc. has helped fill a void in people’s lives.

People staying at homes in quarantine are trying to relive time with their family and near and dear ones. It is scary that we have played a huge role in the economic downturn due to negative sentiments, and the new phenomenon shall be “Physical distancing but not social distancing”. It may help emerge new broadcast or podcast systems for mass access, making live online marriages, ceremonies and rituals, bringing a sense of community when the mass physical gatherings would be completely prohibited, a new way of  digital celebration of ceremonies & rituals may emerge.

Circular Economy: Overconsumption is taking a huge toll. Before this medical crisis, we had been wasting food and other items significantly, but CoVid has led people to become more conscious to avoid wastage. The coming years are not about senseless consumption but responsible consumption. With earth reaching to its tipping points, it   is no more pertinent to recycle, reuse, and looking at the beginning of Life Cycle, that doesn’t generate waste at the end of its lifecycle, and ends into ‘Circularity’ OR ‘Spiral’ effect that keeps on moving inward OR outward morphing into new forms till it reaches death. A strategic shift will help reduce the problem of plenty, with sensible and meaningful products.

Disclaimer: The views expressed in the article above are those of the authors' and do not necessarily represent or reflect the views of this publishing house. Unless otherwise noted, the author is writing in his/her personal capacity. They are not intended and should not be thought to represent official ideas, attitudes, or policies of any agency or institution.

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Iti Tyagi

The author is Founder of Craft Village and India Craft Week

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