How Developing Countries Have Been Affected by Covid-19?
The COVID-19 pandemic has had a devastating effect on developing nations, aggravating pre-existing problems and introducing fresh barriers to economic growth and development. The pandemic's disproportionate impact on vulnerable populations is highlighted by reports that developing countries may be responsible for up to 86 percent of additional deaths brought on by COVID-19. Due to their reliance on capital inflows, tourism, remittances, and the export of raw materials, developing nations are particularly susceptible to the pandemic's economic shockwaves. The global shock to these industries has hampered the balance of payments of developing nations, increasing their debt loads and limiting their ability to provide adequate health and social protection.
Significant obstacles that developing nations must overcome include constrained fiscal space and high debt levels, underdeveloped healthcare systems and low immunization rates, a lack of access to digital technologies and infrastructure, as well as high rates of poverty and informality. These issues have put millions of workers and households at risk for food insecurity, lost income, and other socioeconomic risks.
Concerningly, the pandemic's long-term effects on developing economies include lower growth prospects and productivity levels, increased inequality and social unrest, and increased risks from environmental deterioration and climate change. Reduced investment, human capital development, and innovation are likely to lead to lower growth prospects and productivity levels, while rising levels of poverty, unemployment, and exclusion may cause greater inequality and social unrest. The pandemic's economic effects have also made it more difficult to raise the funds needed to meet the Sustainable Development Goals (SDGs) by 2030, endangering efforts to eradicate poverty, lessen inequality, and combat climate change.
The international community must provide developing nations with specialized assistance to address these issues, including debt relief, increased development aid, and better access to infrastructure, digital technologies, and vaccines. To ensure that vulnerable populations are not left behind, policymakers must also prioritize investments in health and social protection systems, foster inclusive and sustainable economic growth, and strengthen social safety nets. In conclusion, the COVID-19 pandemic has brought to light the urgent need for international cooperation and solidarity in resolving world crises and fostering inclusive and sustainable economic growth. To reduce the economic and social effects of the pandemic and achieve long-term sustainable development goals, developing countries must overcome specific challenges and receive targeted assistance.
The following are a few of the developing nations most impacted by COVID-19.
Brazil, which has the second-highest official death toll in the world with more than 32 million cases and 672,000 fatalities.
- Peru, which has the highest death rate per capital in the world with over 20.5 million cases and 200,000 fatalities reported.
- India, which has recorded more than 38 million cases and 460,000 fatalities, the third-highest official death toll worldwide.
- South Africa, which has reported the highest numbers of cases and deaths in Africa with more than 3 million confirmed cases and 87,000 fatalities.
These nations have struggled with a number of issues including a lack of testing facilities, shoddy healthcare systems, high rates of poverty, political unrest, and social unrest brought on by COVID-19.
Author: Pooyan Ghamari, Swiss Economist and Visionary in Global Markets and Finances