HERNANDEZ, NIŃA CASSANDRA M.

BSBA FM3G2
ECONOMIC DEVELOPMENT
MRS. AURORA SUSAN REYES

REFLECTIVE DISCUSSION (PAGE22)

1. A.) because revitalizing the global partnership for sustainable development. The 2030 Agenda is
universal and calls for action by all countries – developed and developing – to ensure no one is left
behind. It requires partnerships between governments, the private sector, and civil society.bThe
Sustainable Development Goals can only be realized with a strong commitment to global partnership
and cooperation to ensure no one is left behind in our journey to development.However, not all
countries are setting off from the same start line, and low and middle income countries are facing a tidal
wave of debt which they are treading water.Developing countries are grappling with an unprecedented
rise in external debt levels following the COVID-19 pandemic, compounded by challenges such as record
inflation, escalating interest rates, competing priorities and constrained fiscal capacity, underscoring the
urgent need for debt relief and financial assistance.While official development assistance (ODA) flows
continue to reach record peaks, the increase in 2022 is primarily attributed to spending on refugees in
donor countries and aid to Ukraine.To be successful, everyone will need to mobilize both existing and
additional resources, and developed countries will need to fulfill their official development assistance
commitments.

2. In 2020 COVID-19 affected almost all countries and more than 50 million people around the world. It
has governments operating in a context of radical uncertainty, and faced with difficult trade-offs given
the health, economic and social challenges it raises. By spring 2020, more than half of the world’s
population had experienced a lockdown with strong containment measures. Beyond the health and
human tragedy of the coronavirus, it is now widely recognised that the pandemic triggered the most
serious economic crisis since World War II. Many economies will not recover their 2019 output levels
until 2022 at the earliest (OECD, 2020[1]). A rebound of the epidemic in autumn 2020 is increasing the
uncertainty. The nature of the crisis is unprecedented: beyond the short-term repeated health and
economic shocks, the long-term effects on human capital, productivity and behaviour may be long-
lasting. The COVID crisis has massively accelerated some pre-existing trends, in particular digitalisation.
It has shaken the world, setting in motion waves of change with a wide range of possible trajectories
(OECD, 2020[2]).

tackling coronavirus (covid-19)

OECD Policy Responses to Coronavirus (COVID-19)

The territorial impact of COVID-19: Managing the crisis across levels of government

Updated 10 November 2020

Abstract

COVID-19 has governments at all levels operating in a context of radical uncertainty. The regional and
local impact of the COVID-19 crisis is highly heterogeneous, with significant implications for crisis
management and policy responses. This paper takes an in-depth look at the territorial impact of the
COVID-19 crisis in its different dimensions: health, economic, social and fiscal. It provides examples of
responses by national and subnational governments to help mitigate the territorial effects of the crisis,
and offers ten takeaways on managing COVID-19’s territorial impact. Finally, the paper offers a forward
looking perspective to discuss the crisis’ implications for multi-level governance as well as points for
policy-makers to consider as they build more resilient regions.

In 2020 COVID-19 affected almost all countries and more than 50 million people around the world. It has
governments operating in a context of radical uncertainty, and faced with difficult trade-offs given the
health, economic and social challenges it raises. By spring 2020, more than half of the world’s
population had experienced a lockdown with strong containment measures. Beyond the health and
human tragedy of the coronavirus, it is now widely recognised that the pandemic triggered the most
serious economic crisis since World War II. Many economies will not recover their 2019 output levels
until 2022 at the earliest (OECD, 2020[1]). A rebound of the epidemic in autumn 2020 is increasing the
uncertainty. The nature of the crisis is unprecedented: beyond the short-term repeated health and
economic shocks, the long-term effects on human capital, productivity and behaviour may be long-
lasting. The COVID crisis has massively accelerated some pre-existing trends, in particular digitalisation.
It has shaken the world, setting in motion waves of change with a wide range of possible trajectories
(OECD, 2020[2]).

This paper highlights the strong territorial dimension of the COVID-19 crisis. Subnational governments –
regions and municipalities – are at the frontline of the crisis management and recovery, and confronted
by COVID-19’s asymmetric health, economic, social and fiscal impact – within countries but also among
regions and local areas. For example, the health of populations in some regions is more affected than in
others. Large urban areas have been hard hit, but within them deprived areas are more strongly affected
than less deprived ones. Over the past few months, the health impact has spread towards less
populated regions in some countries. In the United States for instance, the highest increase in the
number of deaths occurring in October were in the rural counties not adjacent to a metropolitan areas.
The various risks vary greatly depending on where one lives. This regionally differentiated impact calls
for a territorial approach to policy responses on the health, economic, social, fiscal fronts, and for very
strong inter-governmental coordination.

Many governments at all levels have reacted quickly, applying a place-based approach to policy
responses, and implementing national and subnational measures for in response to the COVID-19 crisis:
- On the health front, many countries are adopting differentiated territorial approaches, for example on
policies surrounding masks or lockdowns.

- On the socio-economic front, governments are providing massive fiscal support to protect firms,
households and vulnerable populations. They have spent more than USD 12 trillion globally since March
2020. Many countries, and the EU, have reallocated public funding to crisis priorities, supporting health
care, SMEs, vulnerable populations and regions particularly hit by the crisis. In addition, more two thirds
of OECD countries have introduced measures to support subnational finance – on the spending and
revenue side – and have relaxed fiscal rules.

- Many governments announced large investment recovery packages – already much larger than those
adopted in 2008 – focusing on public investment. These investment recovery packages prioritise three
areas: strengthening health systems; (ii) digitalisation; (iii) accelerating the transition to a carbon neutral
economy.

3. Education

4. Producing the food they and their families need to survive. In contrast, fewer than 5 percent of the
people in North America are farmers. These farmers can produce enough to feed the remaining
inhabitants of North America and to produce a substantial surplus.Subsistence agriculture is the
production of food primarily for consumption by the farmer and mostly found in less developed
countries. In subsistence agriculture, small-scale farming is primarily grown for consumption by the
farmer and their family. Sometimes if there is a surplus of food, it might be sold, but that is not
common. In commercial agriculture, the primary objective is to make a profit.The most abundant type of
agriculture practiced around the world is intensive subsistence agriculture, which is highly dependent on
animal power, and is commonly practiced in the humid, tropical regions of the world. This type of
farming is evidenced by significant efforts to adapt the landscape to increase food production. As the
word implies, this form of subsistence agriculture is highly labor-intensive on the farmer using limited
space and limited waste. This is a widespread practice in East Asia, South Asia, and Southeast Asia where
population densities are high, and land use is limited. The most common form is wet rice fields, but
could also include non-wet rice fields like wheat and barley. In sunny locations and long growing
seasons, farmers may be able to efficiently get two harvests per year from a single field, a method called
double cropping.

6. Excessive levels of foreign debt can hamper countries' ability to invest in their economic future—
whether it be via infrastructure, education, or health care—as their limited revenue goes to servicing
their loans. This thwarts long-term economic growth.

7 .Land
When most people think of land, they automatically assume it means agricultural land. While that's true,
it isn't the only thing that makes up this factor. Land doesn't just refer to natural resources, but it can
also include commercial real estate and renewable resources like forests. Producers also use natural
resources that come from the earth, which also fit into this category.

Labor

Labor consists of the people who are responsible for the creation of goods and services (from beginning
to end) and the effort they put forth. These individuals include factory workers, managers, salespeople,
and engineers who design the machinery used in production. As such, it can take on many forms. For
instance, the effort of construction workers who work on a building site and quality control workers who
ensure products are ready to go to market make up this category.

Capital

Although most people think capital is cash, the term here actually describes a number of other assets.
Capital goods are also considered capital, which includes manufacturing plants, machinery, tools, or any
equipment used in the production process. Capital may also refer to a fleet of trucks or forklifts as well
as heavy machinery.

Entrepreneurship

Entrepreneurship is the fourth factor and includes the visionaries and innovators behind the entire
production process. The entrepreneurs combine all the other factors of production to conceptualize,
create, and produce the product or service. They are the drivers behind any technical change in the
economic system which has been shown to be a major source of economic growth.

8. The microeconomic perspective focuses on parts of the economy: individuals, firms, and industries.
The macroeconomic perspective looks at the economy as a whole, focusing on goals like growth in the
standard of living, unemployment, and inflation.

9. Infrastructure is crucial for fostering countries' economic development and prosperity. Infrastructure
contributes to higher productivity and growth, facilitates trade and connectivity, and promotes
economic inclusion. Infrastructure is also a key driver for achieving the Sustainable Development Goals.

10. This has led to reduced economic activities worldwide across all industries. The pandemic has
negatively impacted enterprises such as in the form of increasing costs, reducing sales, and labor-related
challenges including remuneration or retrenchment.
HERNANDEZ, NIŃA CASSANDRA M.
BSBA FM3G2
ECONOMIC DEVELOPMENT
MRS. AURORA SUSAN REYES

ACTIVITY (PAGE 14)

Questions: 1. Why is the title of the article 'East Asian Miracle’ Through Industrial Production and
Trade Lenses?

The word "Miracle" used in the title of the article refers to an event that goes beyond what is thought
to be feasible in terms of the realm of everyday experience. According to the 2019 article, “World Bank
coined the term “East Asian Miracle” to describe their achievements in overcoming the development
challenges developing countries typically face.” (Seric & Tiong). Parallel to the title of the paper itself,
"East Asian Miracle Through Industrial Production and Trade Lenses", The article supplied facts to
demonstrate how the East Asian economies were able to advance from insufficient salaries to enough
and fair compensations, through their key drivers: Industrial Production, and Trade Lenses. According to
J.E. Campos & H. Root (1996), Eight East Asian nations—Japan, South Korea, Taiwan, Hong Kong,
Singapore, Thailand, Malaysia, and Indonesia—have earned the term "East Asian miracle" due to the
rapid expansion of their respective economies. Between 1965 and 1990, the real GDP per capita in these
eight nations increased twice as quickly as that of any other geographical group. These countries
pursued policies that encouraged the growth of industries such as textiles, apparel, and footwear.
Hence, the keyword "Industrial Production" in the title implies that the article's primary emphasis is
how these countries were developed, the contributions of innovation, and the effects of governance on
the overall growth of the economy. In the article, it was mentioned that East and South East Asia have
progressively increased their exports compared to their imports, which has helped them either
increase their trade imbalances or decrease their trade gaps in manufactured products. Upon reading
the article, it appeared obvious how the graphs presented, highlighted the importance of "Trade." The
illustrations of East and South East Asia show that the trade and production structures of an economy
are strongly correlated. Reference/s: The Key to the Asian Miracle | Brookings. (1996, April 1).
Brookings. https://www.brookings.edu/books/the-key-to-the-asian-miracle/ ‘East Asian Miracle’
through industrial production and trade lenses | Industrial Analytics Platform. (2019, September 2).
Industrial Analytics Platform. https://iap.unido.org/articles/east-asian-miracle-through-industrial-
production-and-trade-lenses.

2.What are the crucial lessons for developing countries on export-oriented manufacturing growth (Let
this be the Introduction' part of your 10-point initiative.) presented?

Export-oriented manufacturing growth has been a successful development strategy for many countries,
particularly in East Asia. Here are some crucial lessons for developing countries interested in pursuing
this strategy:
Develop a competitive advantage: Developing countries should identify and focus on developing their
competitive advantages. This could be based on factors such as low labor costs, natural resources, or
technical expertise. Focusing on industries where the country has a competitive advantage can help to
increase the country's competitiveness in the global market.

Prioritize infrastructure development: Developing countries need to have a good infrastructure,

including roads, ports, and telecommunications, to support the growth of the manufacturing sector.
Investment in infrastructure is essential to ensure that the products can be transported to the
international market effectively.

Encourage foreign investment: Foreign investment can bring new technology, knowledge, and
management expertise to developing countries. Governments should create an attractive investment
climate, including tax incentives and streamlined regulatory processes, to encourage foreign investment
in the country.

Promote trade liberalization: Developing countries should aim to reduce barriers to trade and open up
to international markets. This includes lowering tariffs, simplifying customs procedures, and improving
logistics.

Invest in education and skills training: Developing countries need to invest in human capital to create a
skilled workforce that can support the manufacturing sector. Education and skills training should be
aligned with the needs of the industry to ensure that the workforce has the skills required to work in the
manufacturing sector.

Manage risks: Export-oriented manufacturing growth is vulnerable to external shocks, such as changes
in demand or supply chain disruptions. Developing countries should manage these risks by diversifying
their markets, investing in research and development, and maintaining a flexible regulatory
environment.

Developing countries can learn from the experiences of successful countries that have pursued export-
oriented manufacturing growth. The lessons include developing a competitive advantage, prioritizing
infrastructure development, encouraging foreign investment, promoting trade liberalization, investing in
education and skills training, and managing risks.

3. The 10-point policy agenda covers the following areas:

1) metrics; 2) vaccination; 3) healthcare capacity; 4) economy and mobility; 5) schooling; 6) domestic

travel; 7) international travel; 8) digital transformation; 9) pandemic flexibility bill; and 10) medium-term
preparation for pandemic resilience.