Greene 1

Darren Greene

Mr. Rudebusch

Composition IV

1/18/21

Responding to Coronavirus

Individuals and companies are showing that they can effectively transition to working

remotely--as opposed to in shared offices. "Through necessity many of us have been working

remotely and using technology to remain productive. We have traveled less, consumed fewer

resources, and introduced more agile business processes'' (Georgieva). The coronavirus has given

the world an opportunity to switch from working in an office building to working from home.

The economy has fallen but not completely crashed because of the internet and the people

effectively working from home to keep products selling and getting delivered.

The world has been put on hold, and we have no choice but to use the internet to keep

moving forward. “Now is the time to take advantage of this opportunity to build a better world

Kristalina Georgieva is managing director of the IMF Looking back to the start of 2020, the

world has changed almost beyond recognition. To protect public health, the global economy was

put into stasis. Shops closed, factories were mothballed, and people's freedom of movement was

severely curtailed” (Georgieva). With the coronavirus keeping the world on hold, we have the

chance to rebuild in places that may need to be worked on more to have a better working system.

With that being said, the internet itself could be a great example of this, as people are finding

more new ways of accomplishing things online such as ordering stuff or even working. It helps

significantly, instead of going to stores during these times with social distancing or being in tight

work spaces, open to the virus.

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Richer countries are helping other poorer countries that have been impacted by this

pandemic in an unprecedented manner. “This is happening already in the fight against the

pandemic as doctors and nurses around the world saving lives of others ahead of their own lifes.

Governments are stepping up in an unprecedented manner. To fight the pandemic they have

combined dramatic public health interventions with fiscal measures amounting to about $8.7

trillion. Central Banks have undertaken massive liquidity injections, and richer countries have

stepped up to support poorer nations” (Georgieva). Lives are roughly being saved ahead of these

nurses and doctors life’s with them treating these cases of covid. Recently there have been

proposed new ways of treating patients and new plans of actions taking place in hospitals such as

stopping the spread, clean work spaces, social distancing, and to wear a mask. Public health

interventions have spent well over $8.7 trillion on medical equipment, masks and oxygen tanks/

concentrators.

In responding to the coronavirus, should governments prioritize saving lives or keeping

the economy afloat? “During the crisis peak, governments have rightly been focused on saving

lives and preserving livelihoods. In places where new infections and deaths are in decline,

governments are considering how best to reopen the economy in a responsible fashion. In

developing economies with large numbers of hand-to-mouth households, prolonged containment

measures may not be a viable option and consideration needs to be given as to how to reopen

safely given more limited health care capacity. In the early phase at least, the recovery will be

unusual as uncertainty remains about the path of the virus, potential vaccines, and therapeutics.

This could hamper the rebound of investment and consumption, especially if infection rates

climb back up as containment measures are eased.” Governments are focusing on saving lives

and preserving livelihoods, they are trying to come up with ways to reopen these economies
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considering where new infections and deaths are diminishing. Economies with large amounts of

hand-to-mouth households are taking into consideration needs that need to be given out to

families and such. The uncertainty of the virus asks whether there’ll be potential vaccines, and or

therapeutics. By doing so it could return the investments and consumption of things, distinctly if

infection rates climb as containment measures are relieved.

While the virus continues to spread what will happen with corruption and spending

priorities? “While moving at speed, the IMF has consistently emphasized its collective

commitment and it’s steadfast support for its members in addressing governance vulnerabilities.

Corruption drains resources away from priorities like public health, social protection, distance

learning and other essential services. Distorted spending priorities will undermine the recovery

and long term efforts to promote sustainable, inclusive growth, or raise productivity and living

standards. Our message to governments is clear--do whatever you can, but make sure to keep the

receipts. We don’t want accountability and transparency to take a back seat. In practice, this

means support for countries in adopting a range of public financial management, anti-corruption,

and anti-money laundering measures.” The IMF has made sure to for-ground its collective

commitment and it’s steadfast support for its members for addressing governance vulnerabilities.

Corruption will lead to more and more drained resources from the most important priorities such

as public health. Things such as distorted spending will undercut the recovery of long term

efforts to begin what we once had. The message to the government is ultimately do whatever it

takes but keep track of everything on something to keep track of raw data. With that being said

we don't want to go any further back with the Covid-19 clock. Without this happening this means

putting out support for other countries which would adopt a public financial management

including anti-corruption, and anti-money laundering measures.

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How long until we the people start seeing more efficacy, sustainability and resilience in

our economy? “As economies stabilize, we have the chance to reorient them to prioritize

sustainability and resilience alongside efficiency and profitability. The right policies will help

allocate resources to investments that support public goods like clean air, flood defenses, resilient

infrastructure, and renewable energy. Meanwhile, lower commodity prices can create the fiscal

space to phase out regressive fuel subsidies that increase carbon emissions. The pay-off would be

considerable: in just the energy sector, a low-carbon transition could require 2.3 trillion in

investment every year for a decade, bringing growth and jobs during the recovery phase.” With

the chance we have now as the economy slowly equalizes we could see a bit of sustainability,

resilience, efficiency and perhaps a bit of profitability. It’s saying with the right policies it could

help assign resources to investments that support things such as clean air, flood defenses,

resilient infrastructure and renewable energy. Yet with this lower commodity that can create a

fiscal space to phase out regressive fuel subsidies that increase carbon emissions. The pay-off

would be considerable but just the energy sector could cost well over 2.3 trillion every year for a

decade. Which would bring hopefully a lot of jobs and growth during the recovery phase.
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Work cited

Georgieva, Kristalina. Beyond the Crisis. , 2020. SIRS Issues Researcher,

https://explore.proquest.com/sirsissuesresearcher/document/2425970430?accountid=4535

9.