conclusion for socio economic issues essay

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Socioeconomic inequalities and learning

Social and economic inequalities have important and long-lasting effects on children’s cognitive and socio-emotional development as well as on educational outcomes (Grantham-McGregor et al., 2007; Shonkoff and Garner, 2012). Multiple inequities combine, producing a negative impact on the ability of marginalized children to learn (Suárez-Orozco, Yoshikawa, and Tseng, 2015). Thus the gap between advantaged and disadvantaged children widens over time (Shonkoff and Garner, 2012; Suárez-Orozc, Yoshikawa, and Tseng, 2015).

In contexts of high inequality, good quality and equitable education is key to the inclusive, peaceful, and sustained development of a society and a country. Ensuring the participation of marginalized groups and individuals in broader development processes helps reduce social inequalities. Inversely, unless attention is paid to equitable access, learning opportunities, and quality learning outcomes, education can entrench existing inequalities or create new ones.

Socioeconomic inequalities and education in the 2030 Agenda

• Leaving no one behind. The 2030 Agenda for Sustainable Development regards equity as central to achieving sustainable development and calls for leaving no one behind. This means including all vulnerable countries and ensuring all people, regardless of their background, have the right to fulfill their potential and to lead decent, dignified, and rewarding lives in a healthy environment. Sustainable development goal (SDG) 10 is specifically dedicated to reducing inequality, with a focus that goes far beyond economic inequality: ‘By 2030, empower and promote the social, economic and political inclusion of all, irrespective of age, sex, disability, race, ethnicity, origin, religion or economic or other status’ (SDG10.2) (United Nations, 2015).
• Addressing inequalities in education at the core of SDG 4. SDG 4 stresses the need to combat all forms of exclusion and inequalities relating to access to education and learning processes. This requires refocused efforts to improve learning outcomes for the full life cycle, especially for women, girls, and marginalized people in vulnerable settings. Equity is all-inclusive within SDG 4 (‘all girls and boys’, with all indicators disaggregated by sex) but is also the focus of a specific target (SDG 4.5): ‘By 2030, eliminate gender disparities in education and ensure equal access to all levels of education and vocational training for the vulnerable, including persons with disabilities, indigenous peoples and children in vulnerable situations’ (United Nations, 2015).

How socioeconomic inequalities affect learning

Whereas wide disparities exist across countries, this brief focuses on socioeconomic inequalities between groups or individuals within countries. It is important to understand who is vulnerable to marginalization and exclusion and how different types of exclusion affect learning.

Exclusion is contextual and influenced by supply- and demand-side barriers that prevent children and young people from enrolling and/or succeeding at school. Exclusion can occur:

• at the individual level , based on socioeconomic status (poverty or low levels of parental education), location of residence (rural vs. urban, regional disparities), or other vulnerabilities;
• at the group level (marginalized ethnic or linguistic groups, nomadic or indigenous peoples, gender or socio-cultural and religious factors, or migration status); or
• as the result of environmental and contextual factors, such as state fragility, conflict, or natural disaster that often lead to displacement.

Factors of exclusion

• Poverty. Children from poor families are less likely to meet the basic pre-requisites for learning and are often ill-prepared to attend school. Children who live in low-resourced communities are more likely to be malnourished, to have absent parents, and to be exposed to violence and stress. Their schools may receive less funding. These factors often lead to poor outcomes (Grantham-McGregor et al., 2007; Shonkoff and Garner, 2012). School attendance may be affected by the need to work to contribute to family finances and by difficulties with paying school fees and other costs.
• Parental education and literacy. The home environment plays a critical role in children’s development and early learning (Save the Children, 2018). Results from the Programme for International Student Assessment (PISA) show that children of parents with high socioeconomic status demonstrated higher reading literacy than children of parents with low socioeconomic status (Xin Ma, 2008). Findings from the Third Regional Comparative and Explanatory Study (TERCE) show that students achieve higher when their parents believe they will reach higher education (UNESCO Santiago, 2015). Inequities in parents’ level of education can significantly affect children’s ability to benefit from formal schooling. Parents who have not attended school, or who are illiterate, may avoid engaging in homework activities with their children or interacting with teachers and other service providers (Eccles, 2005; Tusiime et al., 2014). They may be unable to provide access to books and other literacy materials.
• Location of residence. Most countries have regionally unequal conditions of economic development, funding, and social services, as well as significant rural-urban divides. Schools in low-resourced areas – including rural areas and informal urban settlements – often receive less funding than schools in high-resourced areas. This results in reduced access to early childhood centres, high-quality schools, and well-trained teachers. This, in turn, results in lower literacy rates, poor academic performance, and higher drop-out rates, ultimately contributing to the cycle of poverty (Hindle, 2007). According to a 2018 UNICEF report, the poorest urban children in 1 in 6 countries are less likely to complete primary school than their counterparts in rural areas (UNICEF, 2018).
• Gender. In many countries, girls have less access to schools than boys and are more likely to drop out early. Factors may include practical matters, such as distance, safety, adequate facilities, etc. as well as expectations regarding participation in household chores, child marriage practices, etc., and limited opportunities for girls’ employment after school (GEM Report, 2016; Rihani, 2006; UNESCO, 2012). In some countries boys may drop out of school or underperform because of pressures to earn money or because school is deemed irrelevant (GEM Report, 2016). In school, teaching practices or instructional materials may contain gender stereotyping (Rihani, 2006), and students may face school-related gender-based violence that severely impedes their learning.
• Sexual orientation and gender identity. Bullying, violence, and other mistreatment is often compounded for LGBTI or gender non-conforming children and young people (UNESCO Bangkok, 2015), and has a significant educational impact. They may miss classes, avoid school activities, or drop out of school altogether. International learning assessments show that bullying reduces students’ achievements in key subjects such as mathematics (UNESCO, 2017b).
• Ethnicity, religion, and culture. Children who face direct and indirect discrimination based on their ethnicity, religion, or culture may suffer from negative psychological and physical effects from an early age (Shonkoff and Garner, 2012. This may cause them to underperform or struggle to learn.
• Language. International surveys regularly show that speaking a language in the home other than the language of instruction at school amounts to a handicap (Duru-Bellat, 2004), which leads to a greater risk of grade repetition and drop out (Pinnock, 2009).
• Conflicts, crises, disasters, and displacement. The experience of conflicts, crises, and disasters can leave children physically and emotionally traumatized. Migrant and refugee or displaced children may not have the formal residence papers allowing them to attend school or may face hostility and prejudice in school. Due to damage and/or insecurity, children may not have access to school buildings, learning materials, or qualified teachers (GEM Report, 2018b; IIEP-UNESCO, 2011).

Policy and planning responses

Education policies are among the most powerful levers to reduce income disparities. ‘In countries with currently low levels of education attainment, policies that promote equal access to basic education could help reduce inequality by facilitating the accumulation of human capital, and making educational opportunities less dependent on socio-economic circumstances’ (Brueckner, Dabla-Norris and Gradstein, 2014: 19). Education policies need to be inclusive, with the principle of equity being fundamental to all education sector plans and policies (UNESCO, 2017a). In addition, targeted policies to address specific instances of exclusion should be introduced.

Pro-poor education policies

Inequities can be addressed, and learning outcomes improved, when governments ensure that the most disadvantaged children and their families have access to quality education services in the formative years (Grantham-McGregor et al., 2007; Shonkoff and Garner, 2012).

Policy-makers should provide fair funding and special assistance to the lowest-performing schools and students, and implement school-community partnerships. They should identify priority education zones to compensate for regional funding disparities, and allocate resources based on specific criteria (e.g. percentage of children of foreign origin or whose mother tongue is not the language of instruction). (Duru-Bellat, 2004).

Pro-poor education policies that promote equal access to basic education, such as cash transfers to encourage attendance or spending on public education that benefits the poor, can reduce inequality by helping build human capital and making educational opportunities less dependent on socioeconomic circumstances (WEF, 2014).

Extending access to private schools through vouchers to reduce segregation has been implemented in some countries, with mixed results.

Targeted policies to address specific dimensions of exclusion

Education planners may also ensure targeted support for population groups faced with specific types of discrimination.

• Early childhood education policies should target the most disadvantaged children before they enter school.
• Language/bilingual education policies may help improve the educational outcomes of children whose mother tongue is not the language of instruction.
• Inclusive school curricula and teaching and learning materials can help reduce discrimination (e.g. providing age-appropriate information on sexual health, including information on sexual and gender diversity, can help address bullying).
• ICT policies can provide the tools to help close the educational divide and make classrooms an inclusive place for all (UNESCO, 2011).
• Policies to combat bullying based on gender and sexual identity can help schools establish relevant mechanisms and reporting requirements, and outline sanctions for non-compliance. For example, the Philippines 2013 Anti-Bullying Act provides the framework for national awareness-raising initiatives and school policies (UNESCO Bangkok, 2018).
• Moving to later tracking can ensure that all students get a broad education. Later tracking is associated with better outcomes, particularly for disadvantaged children, who are more likely to otherwise be directed into vocational education (Blanden and McNally, 2014).
• Affirmative action policies encourage and train people from under-represented groups to help them overcome disadvantages in competing with others, particularly in higher education. The benefits are widely recognized, but each country takes a different approach (e.g. Sweden pays special attention to gender, India to caste, and Sri Lanka to the district of origin) (GEM Report, 2018a).
• Crisis-sensitive education sector plans and policies can build resilient systems, help prepare for potential disasters or conflict, and provide equitable access to schooling in crisis- and conflict-affected areas.
• Non-formal or alternative education policies may target children and young people who are outside the formal school system. Adapted curricula and methods can reconnect young people to education or provide them with the skills needed to enter the world of work: ‘Non-formal education … can play a crucial role in providing second-chance education for out-of-school children … [as long as] such educational opportunities provide a recognized pathway into the formal system’ (UIS and UNICEF, 2015: 41).

The need for holistic and cross-sectoral policies

Policy-makers and planners need to investigate other ways to mitigate the impact of inequities on learning outcomes, including health interventions, parenting and community support, and employment policies. Targeting families and communities is particularly important as educational outcomes are shaped much more by the family than by the school. Families are responsible for the initial socialization of their children and for nurturing their educational aspirations (Duru-Bellat, 2004).

Social inequities may also be addressed through wider policies to fight racism and discrimination, strategies for welcoming refugees and migrants into communities, and child-friendly spaces for children who have experienced trauma. Due to the interconnected and cumulative nature of most social inequities, working both outside and inside schools is the best way to ensure that all children meet their learning potential (Suárez-Orozco, Yoshikawa, and Tseng, 2015).

Plans and policies

• El Salvador: Política de equidad e igualdad de género  (2019)
• Malta: Trans, gender variant and intersex students in schools: policy  (2015)
• South Africa: Rural education draft policy  (2017)
• Chronic Poverty Advisory Network, 2012. ‘ Chronic Poverty and Education: A guide to what works in policy and practice’ . Education Policy Guide.
• Education for All Fast Track Initiative Secretariat, EFA-FTI; United Nations. 2010. Equity and inclusion in education: A guide to support education sector plan preparation, revision, and appraisal. Washington, D.C.: EFA-FTI Secretariat.
• UIS; FHI360; Oxford Policy Management; University of Cambridge, Research for Equitable Access and Learning Centre. 2018. Handbook on measuring equity in education . Montreal: UIS.
• UNESCO. 2017. A guide for ensuring inclusion and equity in education . Paris: UNESCO. 
• UNESCO-IBE. 2016. Training tools for curriculum development: Reaching out to all learners: A resource pack for supporting inclusive education. Paris: UNESCO.

Blanden, J.; McNally, S. 2014. Reducing inequality in education and skills: implications for economic growth . EENEE Analytical Report No. 21. European Expert Network on Economics of Education.

Brueckner, M.; Dabla-Norris, E.; Gradstein, M. 2014.  ‘ National income and its distribution ’ , IMF Working Paper WP/14/101.

Duru-Bellat, M. 2004. Social inequality at school and educational policies . Paris: UNESCO-IIEP.

Eccles, J.S. 2005. ‘Influences of parents' education on their children's educational attainments: The role of parent and child perceptions’. In: London Review of Education, 3(3) , 191-204.

GEM (Global Education Monitoring) Report. 2016. Gender review: Creating sustainable futures for all . Paris: UNESCO.

––––.  2018a. ‘Everyone benefits from diversity on campus – why the problem with affirmative action?’

––––. 2018b. Global education monitoring report, 2019: Migration, displacement, and education: building bridges, not walls . Paris: UNESCO.

Grantham-McGregor, S.; Cheung, Y.B.; Cueto, S.; Glewwe, P.; Richter, L.; Strupp, B. 2007. ‘Developmental potential in the first 5 years for children in developing countries’. In: The Lancet , 369(9555), 60–70.

Hindle, D. 2006. ‘The funding and financing of schools in South Africa’. In: Commonwealth Secretariat, Commonwealth Education Partnerships 2006/2007 (pp. 148-150). Cambridge: Nexus Strategic Partnerships.

IIEP-UNESCO. 2011. Integrating conflict and disaster risk reduction into education sector planning: guidance notes for educational planners . Paris: IIEP.

Pinnock, H. 2009. Steps towards learning: a guide to overcoming language barriers in children's education. London: Save the Children UK.

Rihani, M. 2006. Keeping the promise: five benefits of girls’ secondary education. Washington DC: Academy for Educational Development.

Save the Children. 2018. ‘ Beyond access: Exploring equity in early childhood learning and development’ .

Shonkoff, J.P.; Garner, A.S. 2012. ‘ The lifelong effects of early childhood adversity and toxic stress ’. In: Pediatrics , 129 (1).

Suárez-Orozco, C.; Yoshikawa, H.; Tseng, V. 2015. ‘Intersecting inequalities: Research to reduce inequality for immigrant-origin children and youth’ . William T. Grant Foundation Paper.

Tusiime, M.; Friedlander, E.; Malik, S. 2014. ‘Literacy Boost Rwanda. Literacy ethnography baseline report ’.

UIS (UNESCO Institute for Statistics); UNICEF (United Nations Children’s Fund). 2015. Fixing the broken promise of education for all: Findings from the Global Initiative on Out-of-School Children. Montreal: UIS.

UNESCO. 2011. Transforming education: The power of ICT policies. Paris: UNESCO.

––––. 2012. From access to equality: Empowering girls and women through literacy and secondary education . Paris: UNESCO.

––––. 2017a. A guide for ensuring inclusion and equity in education. Paris: UNESCO.

––––. 2017b. School violence and bullying: Global status report. Paris: UNESCO.

UNESCO Bangkok. 2015. From insult to inclusion: Asia-Pacific report on school bullying, violence, and discrimination on the basis of sexual orientation and gender identity. Paris: UNESCO.

––––. 2018. School-related violence and bullying on the basis of sexual orientation and gender identity or expression (SOGIE): Synthesis report on China, the Philippines, Thailand and Viet Nam. Bangkok: UNESCO Bangkok.

UNESCO Santiago. 2015. TERCE: associated factors, executive summary. Santiago de Chile: OREALC

UNICEF (United Nations Children’s Fund). 2018. Advantage or Paradox: The challenge for children and young people growing up urban . New York: UNICEF. Retrieved from:

United Nations. 2015. Transforming our world: The 2030 Agenda for Sustainable Development.

WEF (World Economic Forum) 2014. ‘Why education policies matter for equality ’ .

Xin Ma. 2008. ‘ A global perspective on socioeconomic differences in learning outcomes’ . Background paper prepared for the Education for All Global Monitoring Report 2009 .

Related information

• Education Equity Research Initiative
• Spatial Education Inequalities website
• Inter-Agency Group on Education Inequality Indicators (IAG-EII)
• World Inequality Database on Education

Home — Essay Samples — Economics — Socioeconomic Status

Essays on Socioeconomic Status

Socioeconomic status essay topics for college students.

As a college student, choosing the right essay topic is crucial for a successful and engaging paper. It is important to select a topic that interests you and allows for creativity, while also addressing important issues related to socioeconomic status.

Essay Types and ... Read More Socioeconomic Status Essay Topics for College Students

Essay types and topics, argumentative essay.

• The impact of socioeconomic status on access to education
• Income inequality and its effects on society

Paragraph Example: The impact of socioeconomic status on access to education is a crucial issue that affects individuals and communities. In this essay, we will explore the barriers faced by individuals from lower socioeconomic backgrounds and the implications for society as a whole. It is clear that access to education is not equal for all, and this has far-reaching consequences for our future.

Paragraph Example: The barriers to education faced by individuals from lower socioeconomic backgrounds must be addressed to create a more equitable society. By investing in educational resources and support for these individuals, we can work towards a future where everyone has an equal opportunity to succeed.

Compare and Contrast Essay

• The impact of socioeconomic status on healthcare access in urban and rural areas
• The portrayal of socioeconomic status in literature: A comparison of classic and contemporary works

Descriptive Essay

• Living in poverty: A personal experience
• The impact of socioeconomic status on neighborhood communities

Persuasive Essay

• Implementing policies to reduce income inequality
• Raising awareness about the challenges faced by low-income families

Narrative Essay

• Overcoming socioeconomic barriers to achieve academic success
• A personal journey of upward mobility

Engagement and Creativity

Essay writing is an opportunity to explore your interests and critical thinking skills. Choose a topic that resonates with you and allows for creative expression. Engage with the issues related to socioeconomic status and think critically about the impact on individuals and society.

Educational Value

Each essay type offers unique learning outcomes. Argumentative essays develop analytical thinking and persuasive writing skills, while descriptive essays enhance your ability to create vivid and detailed descriptions. Compare and contrast essays encourage critical thinking and analysis, while narrative essays allow for personal reflection and storytelling.

American Dream: a Mirage for Many

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Conclusion: Future Challenges Related to Socio-Economic Development and the Institutional Response to them

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Social Problems and Its Impact on the Economy Essay

Educated for what, cash for condoms, the loans that were, the growth that wasn’t, forgive us our debts, tales of increasing returns: leaks, matches, and traps.

The importance of education is viewed from various points of view by various individuals, groups of people, and associations or organizations. Education is viewed as and is a way of empowering people by enabling them to gain the necessary skills for handling various challenges in life. The impacts of leadership without education usually have repercussions which are evident in the wrong leaderships. Some of the multi-national organizations have been active in ensuring that education is available to all people.

Education is one of the key aspects of the social, economic, and cultural development of a community as well as for a country as a whole as is evident in some Asian countries. In ensuring that education is rewarding, a proper infrastructure must be put in place.

Since the 1960s, there have been positive improvements in education enrolment in most countries. This has been attributed to the multinational organizations’ efforts and has led to the establishment of more educational institutions in different countries. Despite the rapid development in education in the past years, the GDP of various countries has not improved in the same proportion.

This has led to the undertaking of numerous researches to find out the relationship between education improvement and GDP improvement. The researches have shown that the improvement of the GDP of a country is dependent on the initial education although for a short time basis. Human capital is not directly related to growth as is evident that the returns to any job offered are mainly determined by the experience. This thus means that there must be good infrastructure and strategies for education to yield improved GDP in a country.

Due to the inability of physical and human capital to explain clearly the difference in growth in different countries, some researchers have undertaken researches and come up with models that try to explain the role they play in GDP growth. One of the models used is the Solow model by Mankiw. He illustrated the strong relationship between income and education level specifically secondary education.

The model shows that the accumulation of human and physical capital explains the differences in growth which is evident in some Asian countries. On the other hand, some of the arguments raised by the model were found to be invalid. It was found that the development of various countries was different despite them accumulating both education and physical capital. In any investment, the investor usually invests where there is a knowledgeable labor force to easily achieve the set goals.

The model uses secondary enrolment as a measure of education accumulation in the growth of a country but when different education levels are used, the results are not consistent. The skilled and unskilled wages are found to be different in different countries with working in well-developed countries being more rewarding. Education is very essential for growth if proper infrastructure and motivation are availed to the stakeholders. There should be a good policy with the government providing good incentives.

There has been a failure in education accumulation not producing the expected growth in many countries in the past years. The most probable reason is due to lack of proper infrastructure and incentives. There should be a balance between the skilled labor available and the physical resources available for them to make better use of their knowledge. Due to this failure, a different approach to achieving the anticipated growth ought to be adopted.

Population increase has posed one of the greatest challenges in the growth and development of many countries. To overcome overpopulation various methods such as the use of contraceptives for instance condoms have been improvised to regulate population growth. Fast population growth is evident in most of the developing countries. In previous years some researchers viewed the rapidly increasing population to be due availability of food. Between 1960 and 1990s there was improved food production. Various measures have been undertaken to ensure that the population decreases in number.

Despite the reduction in death rates, population growth has been reduced by the reduction in the birth rate. The increased population growth is a result of neglect on the issue of birth control in the previous years. The high rate of population growth leads to the rise of social, political, and economic problems. Challenges that are observed to stem from overpopulation include deforestation, water security, and famine. The combined international effort to reduce population growth is essential in ensuring that all the people access basic needs. The use of condoms has been observed to be the most efficient way available to control population growth.

There have been cases of children who are born but not planned for. This is mainly due to the lack of using contraceptives such as condoms. There are arguments that the prices of condoms are high and thus they are not used by some people.

The results are usually children whose cost is far much higher than that of a condom. The birth rate in various countries is usually different. The growth of the GDP of the country is found to have no interference from the population increase. Government policies can be altered to show a small relationship between GDP and population growth. The relationship between the GDP and population growth is mainly not observed because the two have been observed to increase or decline together.

Parents usually give birth to more children without taking into account the negative and positive effects they may have on society. It has been argued that a higher population may result in technological innovation, cost-sharing, and the birth of brighter minds. The population growth has been increasing over the years and has always shown positive results. The issue of population growth is best dealt with when each country is considered on its own.

In developed countries, parents usually have fewer children than in poor countries and usually, give good incentives to the development of their children. This is a better method of controlling population growth. Technological advancements have been of great help in the development of different countries.

The population growth rate has increased in the past years posing various challenges to regional development. This has led to the intervention of various organizations. The increase in population growth rate has been shown to have positive attributes. Most organizations have proposed the use of condoms as the best way to reducing the population growth rate. In various researches undertaken, it has been observed that development is also a very important tool in reducing the population growth rate.

Most countries have gotten into debt by borrowing funds to finance national projects. In the 1980s, there were financial crises that hit most countries all over the world. The World Bank projection on development from the funding it offered was not achieved in the early 1980s. To ensure that development was evident, the bank decided to lend some funds to the developing nations on condition that they had to aggressively engage in policy reforms.

The World Bank made some publications concerning the issue of adjustment of policies to achieve growth. The Bank lends to various countries around the world with some showing positive results from the initial stages while others took years to register developments.

The lenders and the infrastructure laid were some of the key aspects of the growth in some countries where there were no adjustments. Inflation has been persistent in many developing countries despite the funding. This was evident in Russia from 1992 to 1995 and Zambia from 1980 to 1994. In the case of Russia, many institutions such as the World Bank and Russian central bank joined hands to bring inflation to an end. Even in transition, there are so many challenges despite the funding that is awarded thus there is the necessity of obtaining the right advice.

There are some aspects which have been pointed out to affect negatively the development of a country. For example, the presence of black markets in some countries has been claimed retard the rate of development. There is a need for a strong development of policies that will make it possible for the efforts channeled towards development to succeed. Examples of countries suffering from a lack of good development policies include Kenya, Ivory Coast, and Pakistan among others.

It is advisable that when money is being lent, consideration ought to be taken on the real interest rate with countries having severely negative interest rates receiving more aid than those with positive interest rates. In the case of corruption, the funds usually do not assist the country as intended. In the 1980s and 1990s, most of the corrupt countries obtained funds from the World Bank. It is observed that the financial assistance provided is usually determined by the donor’s interest rather than the policies in place.

The type of government in place is very crucial as it determines the development growth rate of a country. The funding body may require some changes in the policies before releasing funds. In such cases, some governments usually undertake the necessary reforms while others undergo minor reforms as a cover-up. Despite the cover-ups, these funding bodies usually do not have a good mechanism for intervention. In reducing the deficit of a country in the future, there are many activities that a government can undertake. These usually avoid cascading the current problems in the future.

There are cases where there has been continued funding even when the funds given out are not put into proper use. This has happened when cutting off the funds would adversely affect the citizens of a country.

There are many challenges faced by many countries as they try to achieve their development objectives. Some institutions such as the World Bank and the international monetary fund have been offering funds to these countries. Some of the countries have not shown any appreciable progress in development while some have at least made some progress. Despite these challenges, the World Bank has always been dedicated to ensuring that there is economic growth in these countries by continuously funding national projects in these countries.

Some countries have received too many financial aids from the World Bank. In some cases, the authorities in the recipient countries have misused the funds through corruption deals and misappropriation. When such donated funds are misappropriated then it becomes increasingly challenging for the recipient country to generate some profits which can in turn be used to pay back the loans.

Due to the challenges imposed by these loans, the countries usually encounter challenges despite having good policies. In response to these, the World Bank usually provides debt forgiveness to highly indebted countries as a means of enabling them to develop. A meeting with the G-7 members had approved the writing off of these debts for poor countries as well as increasing their funding. There has been a campaign known as the jubilee campaign that is responsible for pressing on for the implementation of the idea.

The idea of debt forgiveness for poor countries dates back to the late 1970s. Some countries were provided with debt relief. These countries were mainly from Africa and were facing challenges in the repayment of their debts. Towards the end of the 1980s, the G-7 looked into the possible ways of relieving these countries from heavy debts that had already accumulated. The ways suggested included forgiveness and lowering of interest rates among others.

Meeting held thereafter until the year 2000 addressed the same issue with positive progress being achieved. Due to poor governance, these countries that have been relieved of their debts may find themselves again in bigger debts. In acquiring these funds, the administration has been found to use them for various unintended purposes thus creating uncertainty for the future of such countries. The low-income highly indebted countries are selling most of the assets compared to other countries thus posing a challenge for future development.

The highly indebted countries usually have debts in their budgets. The countries are found to implement policies which in the long run do not provide economic growth. In the making of the policies, they should take into account all the long term objectives and the challenges that can be encountered to be in a position to withstand the possible forces that may arise. One of the factors for the heavy debt of these countries is war.

Investors usually invest in projects that are usually rewarding and takes into account the various factors that may affect his investment. Thus there must be proper infrastructure to attract more investors. The heavily indebted countries are found to receive more funding from the World Bank than other poor countries. In the financing of the countries, the donor bodies have been found to fund some governments despite them being irresponsible in undertaking their duties. This method of financing has been referred to as the filling gap.

The forgiving of debts belonging to the poor and the heavily indebted countries is good as it is aimed at assisting such countries to avoid extreme suffering. In debt forgiveness, it should be ensured that the country’s management is responsible so that it can ensure that the country develops. Intensive analysis of the steps undertaken by the country should be analyzed. This helps to make precise decisions on whether the country has qualified for debt forgiveness or not. The donor should ensure that once the debt forgiveness is awarded to the countries, it does not recur. This would reduce the tendency of the country to take more lending to be forgiven in the future. Thus, the countries must establish proper development infrastructure.

The incentives and increasing returns in the undertaking of various activities in a country are very useful for growth. Technology properly integrated with skilled labor usually lays the platform for development. The saving carried out by people usually provides them with a chance for improvement in the future. This is mainly because in the future they would be receiving interests on whatever is saved today and thus they would not have to depend on their income.

To ensure that growth is evident, there should be a good balance in technology and labor. Technology is found to leak but is usually of benefit when it is availed to highly skilled people. This is evident in the growth of the Bangladesh textile industry. Apart from undertaking various investment projects, it is usually good to invest in knowledge. This helps one to tackle various challenges that may arise in the best way possible. The knowledge could be obtained from various stakeholders in the field. Critical analysis of the available channels makes it possible for a person to attain knowledge of any idea. One of the aspects that makes knowledge leak is because it can be used by many people simultaneously.

Knowledge investment usually has very good returns. New ideas are more rewarding than current ideas. The more the capital the higher the returns it has. This is evident even in a society where the presence of productive ideas usually results in improved welfare of the society members involved. Due to the high returns on capital, most people usually work and operate where there is more profit.

The leaking of knowledge is usually good as it ensures that the economic growth and development among different people is uniform. The flow of knowledge between people is found to be facilitated by knowledge investment and leaking. This usually avails the knowledge to numerous people and hence continuous improvements. Despite the success, there are also challenges in that there must be a minimum return on capital that should be attained for investment to be undertaken. This is one of the challenges facing poor countries. In achieving overall success, each stakeholder must undertake his/her duties properly.

This is because the failure of one may cause the total collapse of the entire project. The return of human capital is usually found to be favorable in areas with a large number of skilled labor than in those with unskilled labor. This is usually a key reason for the migration of skilled labor. Improving knowledge usually helps in the long run although in undertaking it some rewarding opportunities are foregone.

Due to the various challenges regarding the availability of skills and knowledge, most poor countries are found to be producers while developed countries are manufacturers. Skilled wages in the developed countries are found to be higher than in poor counties despite the small margin in knowledge difference. Some countries have been found to have poverty traps which may be based on religion, geographic location, and ethnicity. These traps are prevalent in both the rich and poor countries. The steps undertaken are very essential in the growth and development of a country. Good government intervention and policies are very essential in growth.

Technology in a country is very essential in achieving growth and development when well integrated with skilled labor. There are usually leaks in the knowledge that has overall benefits. In making attempts to realize the predicted growth, there are usually barriers that have to be avoided.

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Original research article, socio-economic implications of covid-19 pandemic in south asia: emerging risks and growing challenges.

• International Centre for Integrated Mountain Development, Kathmandu, Nepal

The dramatic spread of COVID-19 has threatened human lives, disrupted livelihoods, and affected trade, economy and businesses across the globe. The global economy has begun to show major disruptions and is heading toward a severe recession with an unprecedented economic crisis. As the global economy is highly integrated and interdependent through the global supply chains, it has been profoundly affected by the COVID-19 pandemic. Although all countries have faced difficulties due to Covid-19, South Asian countries in particular have had to deal with a more challenging situation due to their large population, weak health facilities, high poverty rates, low socio-economic conditions, poor social protection systems, limited access to water and sanitation, and inadequate living space, necessary to maintain physical distancing and take other required measures to contain this pandemic. To contain the spread of the virus, South Asian countries have imposed stringent lockdowns, which have consequently affected the lives and livelihoods of millions of people in the region, where a third of world’s poor live. Against this backdrop, this paper examines the existing and prospective impacts, risks and challenges of Covid-19 on key social and economic sectors including migration, tourism, informal sector, agriculture and rural livelihoods. The analysis revealed that COVID-19 is likely to affect economic growth, increase fiscal deficit and monetary burden, increase the risks of macroeconomic instability, decrease migration and remittance, reduce income from travel and tourism, and result in dwindling micro-small and medium industries and informal businesses. This is likely to deepen poverty and increase unemployment and the risks of hunger and food insecurity. If not addressed properly, this may reinforce existing inequalities, break social harmony, and increase tension and turbulence. The economic and social costs of the COVID-19 outbreak are therefore likely to be significant and long-lasting in South Asia.

Introduction

The escalating spread of COVID-19 has posed the gravest threat not only to the world economy but also to lives and livelihoods. What started as a health shock has now been transformed into a global economic crisis. In a heavily globalized and interconnected world, this has translated into a state of unparalleled economic recession ( Ozili and Arun 2020 ). COVID-19 has become a global systemic economic risk as it has affected almost all the economies of the world, no matter how small or large they are. Because of high globalization, economic integration and interconnectedness among the different sectors of economy, a change in any part of the economy or any country now affects other sectors of the economy in other parts of the world as well. Like climate change, pandemics are now global risks as it can spread around the world quickly, regardless of where it originates ( Acharya and Porwal, 2020 ; Ibn-Mohammed et al., 2020 ).

COVID-19 has posed unique challenges to the South Asian economies due to the region’s large population and high rates of poverty, deplorable health infrastructures, poor socio-economic conditions, inadequate social protection systems, limited access to water and sanitation facilities and inadequate living space arrangements ( Rasul, 2020 ; Hossain, et al., 2020 ). South Asia is one of the poorest regions in the world: about one-third of the world’s poor live in this region with about 70 per cent living in rural areas and primarily dependent on agriculture. Before the COVID-19 pandemic, 649 million people in South Asia were moderately or severely food insecure and 271 million were severely food insecure. Similarly, 36 percent of the children were stunted and 16 percent were acutely malnourished. The situation is likely to worsen further due to the effect of COVID-19 ( Rasul, 2020 ).

The world’s many megacities such as Delhi, Mumbai, Karachi and Dhaka are in this region and their population density is extremely high. In many countries, people lack access to basic services such as clean water, sanitation and hygiene facilities. For example, close to 42% of households in Afghanistan are compelled to use unsafe drinking water and more than 50% do not have access to water and soap to wash hands ( ICIMOD, 2020 ). Furthermore, high population density, poor working conditions and inadequate living space make social distancing very difficult. The world’s largest slums are in South Asia and many of these are home to huge numbers of people, for example the Orangi area in Karachi, Pakistan (2.5 million), Dharavi in Mumbai, India (1 million), and the Rohingya camps in Cox’s Bazaar, Bangladesh (about one million) ( Rasul, 2020 ). These overcrowded living spaces and limited, and often shared, water and sanitation facilities have made physical distancing and self-isolation difficult, consequently increasing the risks of exposure and vulnerabilities ( Hossain, et al., 2020 ). Because of the already strained economic conditions, the majority of the people in this region have few resources and weak capacity to cope with the exposures of a pandemic shock. The challenges are reinforced by the fact that a large share of population make their living through informal sectors or self-employment, without any health or social protection ( ICIMOD, 2020 ).

Being concerned with the fast spread of COVID-19, a few scholars, particularly in India, have made efforts to understand the nature dynamics of the COVID-19 pandemic to model and forecast the pace of transmission and rates of mortality ( Khajanchi and Sarkar, 2020 ; Samui et al., 2020 ; Khajanchi et al., 2020 ). Similarly, Acharya and Porwal (2020) have also assessed whether the population’s vulnerability of being infected and the rates of mortality due to the infection depend on the demographic composition of the population in the different states of India. All these studies emphasized the need for maintaining physical distance and contract tracing to control the spread of the corona virus. Realizing the importance of maintaining physical distance, the governments of this region have imposed strong lockdowns to save people’s lives.

Although South Asian countries have been relatively successful in containing the spread of the virus and saving people’s lives in the early months of the pandemic (both infection and loss of lives are relatively low in South Asia compared to many developed economies), the success has come at a high economic cost due to extended lockdowns which directly impacted economic activities. Simulation results suggest that lockdown of any economy for a month might result in an annual GDP loss of 1.5%–2.0%. It is estimated that the Indian economy incurs a loss of US$ 4.64 billion for locking down the economy for a single day ( Acuité Ratings, 2020 ).

South Asian countries have poor health care systems. Afghanistan has only 2.8 physicians per 10,000 people, Bhutan 3.8, Bangladesh 5.3, and Nepal 6.5, a 10th of the number in more advanced countries. Even India, which has one of the strongest health systems in the region, has only 7.8 physicians per 10,000 people ( Rasul, 2020 ). The South Asian countries, due to weak health facilities and resources, have taken very stringent policy measures to contain the spread of the corona virus and save people’s lives. Except a few essential services, the economic activities have shutdown, travels are banned, movement of goods and services are restricted and cross-border movements are closed. Labor, the main factor of production, has been quarantined, borders have been closed and national, regional and global supply chains have been disrupted mostly in the South Asian region.

While the current policy measures of physical distancing and lockdown are critical for saving people’s lives and in combatting the spread of the corona virus, these measures have affected the lives and livelihoods of millions of people in the South Asian region, which is home to one third of world’s poorest population ( ESCAP, 2020 ). The stronger the lockdown, the greater the economic impacts are. In this backdrop, this paper briefly examines the following questions: What are the existing and prospective economic impacts of COVID-19 pandemic in South Asia, what are the challenges and issues faced by the poor vulnerable population, and what are the likely impacts in the near future—short, medium and long-term? How the economic sectors like, migration, tourism, the informal sector, and agriculture and rural livelihoods will be affected by this pandemic? What are the key measures and actions taken by South Asian countries to address these challenges? What policy responses are needed by national, regional and global communities to address these challenges?

The paper is organized as follows. After this introduction, Economic Impacts of COVID in South Asia assesses the macro-economic impacts of COVID in South Asia, particularly on vulnerable economic sectors. Emerging Social Risks and Vulnerabilities , examines the cascading effects and emerging social risks and vulnerabilities. Emerging Opportunities discusses emerging opportunity to use the disruptive forces of the COVID-19 pandemic and the associated policies for recovery. Government and Civil Society Responses , discusses government responses and the final section of the paper draws a conclusion and suggest policy measures that are required to address these challenges.

Economic Impacts of COVID-19 PANDEMIC in South Asia

South Asian countries took various stringent measures to contain the spread of COVID-19 . Key measures undertaken by different countries included closure of offices, restaurants, hotels, schools, colleges and education institutions, international borders, suspension of visas, imposition of complete international and domestic travel bans, and ban on public gatherings ( Table 1 ). While these measures significantly helped control the coronavirus spread in South Asia, they also imposed huge economic and social cost at the society. Tourism, exports and remittances, which are important sources of foreign exchange earing for South Asian countries, have also been affected significantly. South Asian economies are likely to shrink for the first time in 4 decades ( IMF, 2020 ). This section summarizes key socio-economic impacts that South Asian countries faces due to the Covid-19 pandemic.

TABLE 1 . Measures taken by the Governments in South Asia to contain spread of COVID-19 in early stage of infection.

Increasing Risks of Macroeconomic Instability

Declining GDP growth : While the pandemic is still developing and the actual economic impact has yet to be fully known, different forecasts suggest that the South Asian countries will experience the worst economic performance in the last 40 years due to COVID-19. The magnitude of the economic impact will depend upon the duration and severity of the health crisis, the duration of the lockdown, and the manner in which the situation unfolds once the lockdown is lifted. As per the International Monetary Fund’s forecast, the overall GDP growth rate for the South Asian countries is expected to be in the range of -18% (Maldives) to 3.8% (Bangladesh) in 2020, where five countries are expected to have negative growth trajectory ( Table 2 ). A sharp fall of GDP or negative growth of GDP means that a significant part of the population would lose income during 2020. While population is growing and inflation is raising ( Table 1 ), the reduction in GDP means that the per capita income will decline further, which will affect the livelihoods of the general public. If the global economy recovers rapidly, the South Asian region is also expected to have better growth prospect in 2021, where Maldives is expected to lead the region with 12.7% growth followed by India (8%).

TABLE 2 . Macro-economic indicators of South Asia -Real GDP Growth, Inflation, and Current Account Balance.

Declining trade volume: COVID-19 has severely disrupted international and regional trade and supply chains ( Baldwin and Tomiura, 2020 ). Many countries have temporarily closed their borders, reduced or halted non-essential imports, and canceled import orders from other countries. South Asian countries' growth in the last few decades were fueled by their export growth. The USA, Europe and China are the main trading partners of the South Asian countries, and have themselves been affected badly by the pandemic with their economies slowing down. Because of the sharp drop in external demand, trade and exports contracted sharply as well. COVID-19 has thus heavily impacted both the export and import of South Asian countries. While exports have been growing steadily in recent decades, this year it is expected to be less than that of 2019 in all of the South Asian countries. Overall in South Asia, export growth will be from −6.8 to −3.9% and import growth from −7.3 to −6.2% due to reduced external demand, which will be low even beyond the lockdown period in 2021 ( World Bank, 2020a ). The reduced export earning is likely to compound the economic crisis in other sectors, like employment and household income. For instance, the textile and garments sector, which employs millions of people and contributes a lion's share of the export earning, is heavily dependent on external markets and will suffer heavily.

Inflation : The South Asian countries are expected to experience a slightly higher inflation in 2020 owing to the impact of COVID-19. Except Pakistan (10.7%), all other South Asian countries are expected to have a low level of inflation (0.40% in Maldives to 6.4% in Nepal) in 2020, which is comparable to 2019 inflation rates ( Table 1 ). The current account balance (% of GDP) is expected to be negative for all South Asian countries in 2020, except Afghanistan. The deficit however is expected to be slightly lower than 2019 because of the sharp fall in oil price as well as due to the disruption in global supply chain, where imports are expected to be reduced more than the reduction in exports for most of the countries. South Asia region is a net oil importer and oil occupies the lion's share of the import bill.

Macroeconomic consequences . Lower revenue collection and higher recurrent spending are likely to increase the fiscal deficit to 7.7 percent of the GDP in 2020 ( World Bank, 2020a ). The high fiscal deficits in the region are adding to public debt, affecting fiscal sustainability. Low or negative GDP growth, declining export earnings and increased fiscal deficit have serious implication to household income and poverty. Over time, the macroeconomic crisis will translate to broader macroeconomic challenges that will lead to falling demand and mobility disruptions. The existing macroeconomic crisis may cascade to different economic sectors and compound the impacts at local economy and unfold many economic crizes through both forward and backward linkages and impact both supply (national, regional and global supply chains) and demand (consumption, saving and investment) as well as change prices. If the crisis prolongs, many SMEs may not survive and migrant workers will not be able to return to their original jobs; the recovery could take even longer and these economies may enter into the worst economic recession. The governments of the South Asian countries, therefore, face huge challenges in managing this unprecedented situation, which has major implication for the poor and marginalized communities. With temporary sealing of the border and restriction of the movements, informal cross-border trade is heavily affected, not only putting a number of informal enterprises involved in the supply chain of those goods at a higher risk, but also leading to shortage of groceries, particularly for landlocked countries like Bhutan and Nepal that are heavily dependent on import of basic goods from India.

Impact on Migration and Remittances

Due to restrictions in travel, mobility and gatherings, the most affected sectors are tourism, sports, entertainment (cinema), education, transport, manufacturing, migration and remittances. South Asian countries rely on foreign remittances as one of the main sources of foreign exchange earnings and household income. With closure of the remittance transfer businesses, loss of employment abroad, and absence of travel back home, remittance inflow in South Asia is expected to decline significantly.

Migration and the resulting remittance is one of the important sources of livelihoods for millions of poor households in the region ( KNOMAD, 2020 ; World Bank, 2020c ). The inward remittance from migrant workers serves as a lifeline for their families and as an important source of foreign currency, which contributes significantly to the national economy. For instance, in Nepal, remittance contributes about 27% of the national GDP (2019). India is the largest receiver of international remittance, not only in the region but globally, with US$ 83 billion in 2019. Remittance is also an important source of household income in other South Asian countries where the remittance-GDP ratio was 8.2% in Sri Lanka, 7.9% in Pakistan, 5.8% in Bangladesh and 4.6% in Afghanistan in 2019 ( World Bank and KONOMAD, 2020 ). Like external migration, internal migration also contributes significantly to support families and ensure food and nutrition security for the poorer sections in the rural areas. The rural poor migrate to urban centers and support their families residing in rural areas. India has over 100 million internal migrants, who are also in huge numbers in other countries. The COVID-19 outbreak has placed many internal migrant workers in dire conditions, with many losing their (mostly informal) jobs and unable to return home due to disruptions in public transport services and movement restrictions. This is the reality for most migrant workers, especially those working in the informal sector and living in overcrowded slums. Lockdowns, travel bans, and social distancing measures in response to the COVID-19 crisis have disproportionately affected poor and vulnerable internal migrant workers, who have found themselves stranded, unable to return either to their places of work or their communities of origin. A number of newspaper articles reveal that thousands of workers marched to their villages from cities, despite movement restrictions and lockdowns. Without adequate access to housing, basic water and sanitation, health facilities, or social safety nets to help them survive in such restrictions, these migrant workers have become even more vulnerable to contagion risks. A recent survey in Bihar and UP in India reported that 73% of the respondent migrant households have lost their jobs or main income source ( Population Council, India, 2020 ).

The migration and remittance sectors have been affected heavily by the COVID-19 pandemic. The initial estimates suggest that remittances will fall sharply in all of South Asian countries in 2020. The remittance flow will drop about 23% in comparison to 2019 in India, Pakistan, and Bangladesh. In Nepal is expected to fall by 14%. In total, in S outh Asia, remittance flow is likely to decline from US$ 140 billion in 2019 to US$ 135 billion in 2020 and projected to decline to US$ 120 billion in 2021 ( World Bank and KNOMAD, 2020 ). The coronavirus related global economic slowdown, falling oil prices and travel restrictions may also affect the demand for migrant labor and migratory movements, and this is likely to keep remittances subdued even in 2021. These forecasts were done in the initial phase of the lockdown, but recent data suggest that the remittance inflow may not be affected as much when compared to 2019. However, many migrant workers from the region are infected with the virus in their work destinations with some causalities and with millions stranded in need of repatriation, which poses huge challenges and risks.

Losing Jobs in Informal Sector and MSMEs

In South Asia, a majority of the population is either self-employed or engaged in agricultural and related activities. Service and industry sectors are other major employers in the region, while micro, small and medium enterprises (MSMEs) and the informal sector services engage the largest workforce. ( Figure 1 ).

FIGURE 1 . Informal employment in South Asia in agriculture, industry and service sectors. Source: ILO, 2018 .

For instance, in India 36 million MSMEs employed 60 million people and contributed significantly in national economy ( Dev and Sengupta, 2020 ). In Nepal, MSMEs generates over two million jobs and contributes 22% of the country’s GDP ( Shrestha, 2020 ). In other South Asian countries, MSMEs also play a very important role in providing employment and income, contributing to exports and earning foreign currency.

The informal sector in general and MSMEs in particular have been hit hard by COVID-19 across the South Asia. The informal enterprises and wage labourers face daunting challenges. Many MSMEs are now closed as they could not sustain themselves through the lockdown, leaving many informal sector workers unemployed; economic losses accumulated due to reduced demand, restriction of movement, lack of access to markets, and the loss of mobility of people and goods have all affected workers ( ILO, 2020a ). COVID-19 restrictions have brought major economic activities to a standstill and have closed the operation of almost all MSMEs except a few health related enterprises. For example, in Nepal, more than a million informal sector workers have lost their jobs temporarily or permanently and are in need of relief materials from the state ( Awasthi, 2020 ). Since hotels and restaurants have been closed for months, demand for food and related materials have also declined sharply.

In Pakistan, about 12 million workers were likely to face layoffs due to lockdown and the country’s sluggish economic recovery ( PIDE, 2020 ). It is also anticipated that if COVID-19 induced situation restricts the GDP growth rate between 0 and 1.5%, it is likely to increase the percentage of poor population (of income poverty) from 25% to around 55% ( PIDE, 2020 ).

The high rate of layoffs and closure of a considerable portion of business will have multiplier effects on employment, household income, food and nutrition security and livelihood security. As most of the workers in the informal sector are poor and the majority of them are women, it has significant implications to poverty, gender and food and nutrition particularly for the marginalized communities who engage heavily on the sector for cash income and livelihood. Food insecurity is another major challenge caused by the disruption of agricultural production, food supply chains, and loss of income across different countries due to the pandemic. At the same time due to the low supply of agricultural production, food prices have been increased leading to severe impacts on household food security. The most vulnerable population in South Asia are those exposed to weather related disasters (flood, droughts), conflict or are living in extreme poverty in countries with weak social protection programs. The strain on incomes resulting from the decline in economic activity will devastate workers close to or below the poverty line and will bring additional people under poverty.

Inadequate Social Security Coverage

All South Asian countries have lower than world average public health expenditure ( Table 3 ). As percent of the gross domestic product (GDP), the Maldives has the higher share of public health expenditure (5.2%) while Bangladesh has the lowest share (0.47% of GDP). A recent study shows that the some of the cities in South Asia (Karachi in Pakistan and Delhi in India) severely lack intensive care beds, healthcare workers and financial resources to meet the growing demand for healthcare services due to the coronavirus transmission ( Davies et al., 2020 ). Other than Sri Lanka (24%), Bhutan (14%) and India (10%), social security coverage of the workers is quite low where less than 4% of the workers have some kind of social security. Around 140 million workers are expected to lose their jobs in the region ( ILO, 2020b ; UNESCAP, 2020 ).

TABLE 3 . Basic facilities in health sector and Social Security Coverage in South Asian countries.

The following table ( Table 4 ) shows the average score of Global Health Security (GHS) index for South Asian countries. The global average of the GHS score is 40.2. Among the South Asian countries, India and Bhutan are above the global average while the remaining countries (Pakistan, Nepal, Bangladesh, Maldives and Afghanistan) are below the global average score.

TABLE 4 . Health security ranking and score of South Asian countries.

Effect on Travel and Tourism

Some of the most affected sectors in South Asia due to COVID-19 are tourism, hotel and restaurant, manufacturing, construction and real state, agriculture, transport, trade and so forth ( ESCAP, 2020 ). In the region, travel and tourism sector created around 50 million jobs in 2018 ( Table 3 ), contributing significantly to the national GDPs. For instance in India, tourism and travel services employ about 43 million people contributing over 9% of the GDP; in Pakistan, it contributes over 7% of the GDP; and in Nepal, it employs over one million people contributing about 8% of the GDP ( Table 5 ).

TABLE 5 . Employment and economic contribution of tourism and travel industry in South Asia.

The COVID-19 mitigation measures including social distancing and travel restrictions have affected the travel and tourism sector the most. Demands in the tourism, travel, hotel and restaurant sectors collapsed immediately after the spread of the coronavirus, which consequently affected the travel and tourism industry severely. For instance, on March 12, the Nepal government canceled all Everest expeditions slated for 2020 spring season. In the previous years, the Department of Tourism used to collect approximately US$ 4 million annually in royalties from Everest climbing permits. In addition to permits, each climbing team used to spend US$ 40,000–90,000 for other expenses ( ICIMOD, 2020 ). The tourism sector, which generates huge revenue and provide employment to a considerable portion of people, has therefore been extremely affected ( ICIMOD, 2020 ).

It is estimated that in the trekking sector alone, thousands of people will be severely affected while approximately 20,000 tour guides will lose their jobs ( De Silva, 2020 ). The hospitality sector, which employs up to 60,000 workers in Kathmandu, Pokhara and Chitwan, has already been severely impacted by the drop in tourism ( Shrestha, 2020 ). Similarly in India, 40–50 million job cuts are imminent from big hotels, travel agencies and tour operators ( Dev and Sengupta, 2020 ). Bhutan incurred a loss of US$ 4.4 million and Bangladesh lost US$ 470 million from both domestic and international tourism (UNWTO, 2020). Because of the travel ban, the airlines industry is the hardest hit and unlikely to recover soon.

The COVID-19 pandemic is expected to affect the tourism demand and supply in South Asia differentially. At the demand side, international inbound tourists are expected to be reduced, while regional and domestic tourists to be increased. From the supply perspective, loss of jobs and closure of businesses run by MSMEs in the short term, are expected to recover and revive from the medium term onwards due to a growth in regional and domestic tourism in the region.

Impact on Agriculture and Rural Livelihoods

Due to the COVID-19 pandemic, agricultural value chains and livelihoods of the agriculture dependent population has been suffering ( Morton 2020 ; Sulser and Dunston, 2020 ). In South Asia, majority of the rural population depend on agriculture and agri-related activities. Agriculture in this region is labor intensive and employs over 50% of the respective countries' labor force. Because of its high labor intensity, agriculture based rural economy and livelihoods are disrupted by COVID-19 and resultant quarantine, restrictions on movement of goods and services and closure of cross-border trade ( Sulser and Dunston, 2020 ; Rasul, 2021 ). The COVID-19 induced disruption affects the agriculture and the entire food system – the production, transportation, marketing, distribution and consumption. Out of panic, even a few grain exporting countries in the early months of covid-19 restrictions have restricted their exports, which disrupted the international trade, eroded confidence on the global food market and cultivated insecurity (IFPRI, 2020).

COVID-19 has disrupted agricultural operation in the South Asian region because of shortages of labor and inputs, as shut-downs extended to rural areas, village roads, transportation and marketing of goods, all to control the movement of people in order to effectively curb the spread of the pandemic. The outbreak was initially experienced during the planting and harvesting season of many crops, including wheat and paddy, the two major staple foods in the region ( Rasul, 2020 ).

Most affected sub-sectors are fruits, vegetables, poultry and dairy. For example, the poultry sector in Nepal has been losing Rs 220 million per day in recent months ( Shrestha, 2020 ). Fruits are the major cash crops in the region, and the sector was affected badly due to transportation ban and lack of storage and processing facilities. Similarly, dairy farmers could not sell milk; beekeepers could not migrate their bees for spring blooms or get buckets for collection/storage of harvested honey and perform honeybee colony multiplication work/queen rearing, and people could not collect/harvest non-timber forest products (NTFPs) either.

Shocks in Agriculture and Food Security due to the COVID-19

Although in developed countries the impact of COVID-19 on agriculture is relatively less, in South Asia the impact is substantial because of less mechanization and high labor intensity in agriculture. Across South Asia, rural populations depend on agriculture and agriculture-related activities for their livelihoods; about 50% of the workers are engaged in agriculture ( Rasul, 2020 ; Rasul, 2021 ). While the current policy measures of social distancing and lockdown are critical to save people’s lives and for combating the spread of the corona virus, these measures have affected the agricultural operations with many migrant workers unable to participate in agricultural activities. The disruptions arising from COVID-19 responses have impacted agricultural activities and its supply chain, including the marketing, transportation, distribution and consumption of agricultural goods and inputs in South Asia ( Rasul, 2021 ).

The intensity of COVID-19 shocks on agriculture in the South Asian countries is high because the timing of the COVID-19 pandemic outbreak coincided with the planting and harvesting season of many crops including wheat, paddy, fruits and vegetables. For instance, in Bangladesh, farmers could not deliver harvested watermelon to markets due to transportation bans ( Das et al., 2020 ; ICIMOD, 2020 ; van Bodegom, and Koopmanschap, 2020 ). According to FAO (2020), the pandemic restrictions in Bangladesh severely hampered the country’s export of tropical fruits. Additionally, due to travel restrictions, seasonal labourers could not reach the agricultural sites for the Boro rice harvest, which accounts for over half the nation’s rice production. Marketing and selling of poultry, dairy and fruits have also been affected severely in many South Asian countries, particularly the hill and mountain regions. Despite government many efforts, urban poor households in Bangladesh faced acute food insecurity during the lockdown period ( Das et al., 2020 ).

COVID-19 has disrupted food transportation and supply chain in different parts of South Asia. Because of transport restriction and market disruptions, prices of farm products have collapsed and farmers have had to sell their harvested products at very low rates. For instance, farm prices for wheat in India have declined substantially due to lack of facilities to transport the harvest to the markets ( Dev and Sengupta, 2020 ). Similarly, demand for poultry has also shrunken considerably. While prices of farm products have declined, the consumer price of many essential food items increased in almost all the South Asian countries during the initial outbreak of the COVID-19. During the lockdowns most of the countries experienced higher prices of food items and even shortage of food. The situation was further aggravated by the restriction of cross-border movement of goods and trade. A few of the major grain-exporting countries also restricted their exports out of fear of domestic food shortages, which disrupted international trade and regional food markets, and caused acute scarcity in import dependent countries. Border restrictions furthermore affected the transport of agricultural inputs such as chemical fertilizers, seeds, and farm equipment. A decline in food and inputs trade affected food availability in remote areas and may have caused price hike in food importing countries like Afghanistan, Bhutan, Maldives and Nepal ( ICIMOD, 2020 ). For instance, in Afghanistan, initially food prices increased by 30% in Kabul when its border with Pakistan closed, with wheat flour prices increasing by 80–100% in March ( Rahim, 2020 ). Meeting food and nutritional requirements in many South Asian households has been a challenge due to the increasing food prices and loss of jobs during the period of the lockdown. Many poor households have been pushed to cut their expenditure on food items which has compromised their nutrition. Several households have even been forced to borrow money or use their savings to buy food. As estimated by the United Nations University, the COVID-19 pandemic will push 16 million people in South Asia into extreme poverty ( Sumner et al., 2020 ; UNESCAP, 2020). Moreover, a global economic slowdown is highly likely to force international migrant workers to return to their home countries, thus drying up vital foreign exchange resources in many South Asian countries which will consequently affect their food purchasing power.

Socio-Cultural Impacts

Physical isolation caused by the lockdowns has impacted social relationships, social interactions, and shed light on deep-rooted social norms and exclusions all over the world including South Asia. Sudden layoffs and loss of work have led to depression, alcoholism, substance abuse, and in some cases suicides ( Hossain et al., 2020 ). Although poor and disadvantaged groups suffers more. Newspaper reports and videos circulating on social media record thousands of migrant workers stuck at national and international borders, unable to return to their own homes expressing a sense of abandonment, unfair treatment, and rage. The negative psychological impacts of the pandemic and measures to contain it are raising concerns about mental wellbeing, especially that of senior citizens, frontline healthcare providers, and individuals with existing health problems. The restricted mobility caused by lockdowns has been especially challenging for chronic patients and the differently abled who require regular medical care, but in many cases, have been unable to access it. There is very little public information available regarding the conditions of those living in state institutions—prisons, mental health institutions, shelter homes, and orphanages ( ICIMOD, 2020 ). Many students whose campuses are closed find themselves stranded, often very far from their homes and many express a sense of hopelessness. Sudden layoffs and loss of work have led to depression, alcoholism, substance abuse, and in some cases, suicides. Closure of schools has also denied to children of poorer households, access to mid-day meals which could have adverse effects on nutrition, resulting in increased rates of stunting (UNESCAP, 2020). It is also reported domestic abuse of women has sharply increased during the lockdown period in many parts of South Asia ( ICIMOD, 2020 ). The covid-19 pandemic has intensified the existing inequalities and further creating new forms of exclusion.

Emerging Social Risks and Vulnerabilities

Social protection system is very limited across the South Asian countries, where vulnerable population is expected to face unprecedented challenge due to the COVID-19 pandemic at their own expense. A huge share of populations in the region is involved in informal work with daily wage labor. The COVID-19 pandemic is likely to bring additional risks and challenges for South Asia, impacting communities and households through multiple channels. The poorest of the poor households and communities have already been impacted through the collapse/reduction of tourism, sharp fall in migration and remittances (both external and internal), and loss of jobs in the urban areas. Informal jobs in the cities and urban areas have evidently shrunk. Large numbers of internal migrant workers have returned back home and many international migrants are also returning or will have to return to their respective countries of nationality in the short- or medium-term. These initial impacts of COVID-19 will, however, permeate to other sectors including agriculture.

Besides the loss of income from job and migration, the South Asian population will suffer from the dampened demand of their products and services due to fall in aggregate demand and avoidance behavior (e.g., tourism, travel, recreation) due to ongoing risks of contracting the virus. Moreover, the loss of income and fall in remittances may increase indebtedness and force households to sell their productive assets and/or severely restrict the ability of the poor households to invest in education of their children, and/or compromise on their nutrition, which will have long-lasting effects. This may deepen poverty, inequalities and vulnerabilities in the region. The economic and social costs of the COVID-19 outbreak are likely to be significant and long-lasting.

Besides few online schooling, most of the schools are closed and millions of children are out of school. It is expected that many children, especially girls, marginalized communities, and the disabled may not be back to school, as they will be forced to make up for their household income loss caused by the pandemic. Table 6 presents the existing drivers, emerging risks and challenges, and potential implications for South Asia.

TABLE 6 . Emerging social risks and challenges and possible socio-economic implications.

It is evident from Table 4 that the Covid-19 pandemic has led to multiple risks and challenges. Due to the restriction on travel, tourism, and gathering of people to maintain physical distancing, the demand for all kinds of goods and services are suppressed due to forward and backward linkages. As a result, trade volumes (both imports and exports) have declined considerably. However, the domestic spending on health sector, and social security has been increased, but tax revenue declined which have macroeconomic implications.

As a large share of economic activities in South Asia are informal, the closure of factories and restaurants, and the decline of tourism and demand for goods and services, has shrunk the region’s labor absorption capacity. As a result, unemployment rates have soared while incomes have declined ( CMIE, 2020 ). This has made millions of households vulnerable to poverty.

When factories, construction sites, travel and tourism sectors closed, migrant workers returned back to their villages. This return-migration trend is also taking place at the international level, where migrant workers working in foreign countries have lost their jobs and are returning back home. Returnee migrants need additional support for their survival and in the absence of such support system, their families are more likely to be vulnerable to poverty since households not only need to support additional members but have also lost remittances. Covid-19 is likely to deepen poverty and reinforce inequality, increase social tension, disturbances and crimes in South Asia.

Emerging Opportunities

The current situation provides a unique opportunity to use the disruptive forces of the COVID-19 pandemic and the associated policies for recovery; to accelerate the transition to more sustainable and resilient societies ( Rasul, 2020 ). Some of the short-term measures to address the challenges of COVID-19 can be linked to economic growth by investing in natural capital to improve the long-term productivity and resilience in the region. This requires strategic thinking and strategies for long-term investment to ensure that short-term actions result in long-term benefits. Short-term support can be linked to long-term socio-economic growth through appropriate planning and strategizing which will improve the social and environmental conditions for the sustainable recovery of the health and economic sectors ( Rasul, 2020 ). For example, food for work programs can be linked to programs that construct or maintain local infrastructure such as roads, irrigation canals, management of watershed thus helping poor households to cope with vulnerability while building assets that are essential for society. Similarly, requirements to include energy efficiency in building designs can be linked to support provided to building construction companies to restore jobs, thus providing job restoration in the short-term and climate benefits in the long-term.

Leveraging Civil Society and Private Innovation

The lockdown has also prompted actors involved in supply chains to adapt a number of important private sector innovations to cope with the pandemic restrictions ( Sulser and Dunston, 2020 ). E-commerce has been growing steadily in the recent years in South Asia due to increased digital connectedness and the development of information and communications technologies. During this period, for instance, consumer-led groups on Twitter, Facebook, and WhatsApp have organized with Farmer Producer Organizations in several countries to find ways of bringing food to markets ( Narayanan and Saha, 2020 ). Many farmers began delivering produce directly using WhatsApp to secure aggregated orders in housing cooperatives in nearby cities ( Narayanan, 2020 ). In India, Swiggy, a fast-growing food delivery app and logistics company, delivers for 40,000 restaurant partners, helping them with its “jumpstart package” to recover sales, while the Swiggy Capital Assist Program helps pay for hygiene and distancing upgrades. During the farmers’ markets shut down, some farmers traveled to cities to set up shop at roadsides maintaining physical distance. In India, Flipkart is growing fast during the COVID-19 crisis and developed a “hyperlocal delivery”grocery service linking SME suppliers with domestic supermarket chains like Vishal Mega Mart with its e-commerce operations ( The Economic Times, 2020 ). Nepal’s nascent e-commerce sector has also growing steadily since the lockdown started.

Global energy demand has declined sharply due to the mitigation measures of COVID-19 and energy price is also going down sharply. Since most of the South Asian countries are net energy importers, the falling oil price could benefit these countries. The reduced oil prices will not only lower the import bill but also help save foreign exchange and will have positive impacts on the current account balance. For example, India is the fourth largest consumer of oil in the global market and a rough estimate suggests that “a US$ 10 fall in crude could reduce the current account deficit by approximately 0.5% of GDP and the fiscal deficit by around 0.1% of GDP” (Sandeep Nayak, The Economic Times, January 12, 2015). The lower oil prices will have positive impacts on manufacturing, cost of fertilizer production for agriculture, costs of transportation and many other energy dependent sectors. The Pakistan government has already declared a reduction in oil prices by Rs. 20 per liter ( DAWN, 2020 ). The decrease in oil prices will decrease production cost and can have positive impacts on managing inflation and living expenses.

Another sector with future growth potential is health services and medical goods and services. Because of COVID-19 pandemic, people are now more conscious about health and the governments may thus invest more in strengthening health facilities. This is likely to increase the demand for health and medical products, including food items with health benefits. This could create an increased demand for health and medicinal products, including the foods with nutritional benefits. The pandemic and resultant disruption in supply chain has created a need for proper development of local economy, local food system, and both on- and off-farm activities. Other important areas of emerging opportunities could be the development of internet-based service sectors. The pandemic has created additional demand for internet-based economic activities, such as online shopping, distance education, as well as online medical services and work from home, which may change the demand for office space and travel needs. Policies that reduce job market frictions and facilitate labor adaptation to these job opportunities would be needed, once the pandemic is controlled in working toward a self-reliant economy for the region.

The COVID 19 pandemic also provides an opportunity to build resilience in the most vulnerable region through the use of stimulus packages to tackle the poverty and other issues. The government may plan strategically to prevent risks and improve resiliency, for instance by promoting sustainable development to reduce the impact of other shocks, such as natural disasters, in the future. As South Asian countries have committed to meet the SDGs by 2030, the governments should utilize their resources and invest in assisting the people affected by the COVID-19.

Government and Civil Society Responses

The governments of South Asian countries have responded promptly and adopted several policy measures to contain the spread of the COVID-19, support the poor people to ensure food, and provide stimulus to economic sectors. In this section, we briefly present the economic response measures taken by South Asian countries.

Response to Support Vulnerable People

The major focus of government response on preparations to contain the spread of the virus, increase resources for the health-care system including financial support for medical testing and treatment of the disease, as well as fiscal support for emergency public interventions to increase hospital capacity and medical supplies. All the governments have strengthened their social protection programmes (cash and asset transfer, including food) and provided resources for supporting poor and vulnerable groups, and provided wage support to low-wage workers. For instance, the Government of Afghanistan allocated US$ 15 million to contain corona virus; the Government of Bangladesh allocated US$ 29 million to fund the COVID-19 preparedness and response; the Government of India allocated US$ 22.6 billion to provide essential food items, health facilities, fuel and direct cash to support the poor people and senior citizens; and the Government of Pakistan introduced a relief package worth US$ 7 billion for next three months. The governments of Bhutan, and Nepal also adopted different social protection measures to support poor and vulnerable groups. For example, Nepal government took full responsibility of bearing the cost of testing and treatments of people who have been infected by the coronavirus. In some of these countries, monetary incentives and support was also provided to encourage people to comply with the quarantine efforts. Besides government support, NGOs, civil societies, private sector and religious organizations also extended their support in providing food and essential items to the poor. In Pakistan, government has Ehsaas program to strengthen coordination with NGOs and other civil bodies to target the poor population for delivery of rations more effectively.

Response to Minimize the Short-Term Economic Pain

Besides supporting vulnerable people, governments of South Asian countries have also adopted various fiscal and monetary measures to minimize the short-term economic pain and to inject liquidity into the financial system. The governments have adopted different measures including concessional lending to prioritized sectors, reduced restrictions on payments such as forbearance of taxes, rent and utility payments and deadlines for loan payments to make liquidity available and to provide flexibility for debtors. For instance, the Reserve Bank of India rolled out a plan of 1.8% of GDP to increase liquidity in the financial sectors. In addition to the central government efforts, some States in India also adopted stimulus measures to sustain economic activities and support the poor. For instance Kerala State has announced US$ 2.6 billion package (2.5% of the state GDP) for economic recovery and some direct transfers to poor households ( World Bank, 2020a ). Similarly, Government of Pakistan introduced a huge stimulus package and financial support including US$ 600 million support to SMEs and tax refunds to the export industry ( World Bank, 2020a ). Government of Bangladesh announced the plan of US$ 588 million salary support to garment and other export industries to support their workers. Government of Nepal also introduced concessional loans for SMEs to pay their workers.

Response to Reopen and Revitalize Economy

Different countries adopted different strategies for gradual opening of the economies and providing financial support to priority sectors to revive economic activities. Government of India has adopted a measure of zoning the country based on the prevalence of the coronavirus cases to relax the lockdown and gradually restart economic activities in areas where the virus is absent or low in number, yet taking stringent measures in the hotspot areas. The state government of Assam, India has constituted a task force to design strategies to revive the state's economy. India’s central bank has introduced measures to increase liquidity to increase access to credit for the pharmaceutical, construction and tourism industries. Bangladesh government is providing 50–70% subsidy to farmers for buying harvesters to address the challenges of labor shortage in paddy harvesting. The governments of Bhutan, Myanmar and Nepal have also rolled out different measures to stimulate SMEs ( World Bank, 2020a ). It is heartening that Benapole- Petrapole land border between Bangladesh and India has opened recently after three weeks of lockdown to facilitate movement of people on emergency ground ( ICIMOD, 2020 ).

Conclusion and Policy Recommendations

The COVID-19 pandemic has posed a huge risk and severely impacted the socio-economic condition and livelihood of people in South Asia. The coronavirus is still spreading and it is difficult to predict when it will be completely contained. The unprecedented challenge posed by the COVID-19 pandemic calls for very urgent and decisive actions to ensure that people’s lives are saved, livelihoods are protected and the economy recovers. The Covid-19 outbreak has caused direct high costs on human health and economic activities, and poses the most adverse effects on livelihoods of the poor and the most vulnerable communities. This study discusses some of the crucial key points that may help assist vulnerable group of people who are suffering from this pandemic. Since the coverage of social security system is minimal or absent altogether in most of the South Asian countries, the government should manage to give some sort of social security facilities to the poorest population, more specifically when they lose their informal employment opportunities. Improving saving habits of the poor and providing access to banking services would, for instance, provide safety nets during times of crisis.

As health, environment and social issues are interconnected, concerted efforts are required to mitigate and recover from the damages brought by the COVID-19 on our societies and economies. Governments need to prioritize their activities for short, medium, and long-term. Regional and global cooperation is also necessary to address the ripple effects of COVID-19 on different societies. The countries of South Asia must act collectively to address their challenges and to create favourable conditions for economic recovery. Importantly, innovative strategies and approaches are needed to address the coronavirus challenges. The governments of the South Asian countries may consider the following policy measures to mitigate the negative impacts of the pandemic on the poor and most vulnerable sections of the society and to promote economic recovery.

1 Plan for an economic recovery from COVID-19 to develop a strategy to adapt quickly based on the situation, avoiding blanket lockdowns so that areas with low intensity risk are not affected due to closure of the local economies, since blanket shutdown of the economy has taken a devastating toll on the economy and people’s livelihoods. The Indian approach of categorization of the country based on the prevalence of the corona virus cases and opening the economic activities in areas where virus is absent or low, and introducing stringent measures in hotspot areas could be a good starting point. Detailed guideline, however, is necessary to operationalize such policies, such as following clear protocol developed based on local condition and evidence as well as clear strategies for containing the virus after opening. Due to the lack of such protocols, the risk of resurgence of the COVID-19 virus is quite high in these countries, as it is has evidently been occurring in the United States and European countries. It is important to use the media intensively to raise awareness among public and disseminate targeted health care education and self-protection as well as supporting mental health ( Khajanchi et al., 2020 ).

2 Develop roadmap for achieving short, medium, and long-term goals to revitalize the national and sub-national economy by taking into account the specific condition and needs of the poor and vulnerable groups at sub-national level. In the short term, focus should be on addressing the immediate health crisis, ensuring food and nutritional security, shorter-term job creation and transferring incomes to the needy population to survive the economy. Medium term focus should be on boosting economic activities to recover the economy and in designing and implementing the best possible stimulus to achieve financial recovery. The long-term goal should be t ransforming or bouncing the economy forward by promoting long-term sustainable growth and poverty reduction.

3 O rchestrate the fiscal, monetary and development interventio n in an integrated and coordinated manners so that different policy measures complement each other and multiply their effects in economic recovery. While the short-term focus will be on addressing the impacts of the pandemic and restoring jobs and employment, the long-term focus could be on improving long-term productivity and resilience by investing in a balanced portfolio of physical, human, social and natural capitals, which will build capacity to deal with future challenges and mitigate the impact of future pandemics and other socio-economic shocks. For example, investment in health, education, skills development, innovation, technological upgrading, and green infrastructure and natural capital will increase the productive capacity of the population and provide sustainable returns for future generations.

4 Redouble the efforts of social protection to protect the poor, vulnerable groups, and migrant workers and compensate the loss of income so that they can maintain minimum standard of living and do not slide back to poverty. Investment in social protection and job creation will be needed to protect the vulnerable in the short term, but policy priorities could gradually shift to reducing the environmental risks affecting human health and vulnerability to climate change. Protecting and enhancing natural capital such as forests, soils, water resources, ecosystems, biodiversity, air quality, and climate can support human health and productivity and improve long-term resilience. For example, investment in green infrastructure such as renewable energy can supply clean energy and improve air quality, which leads to long-term health benefits and positive climate outcomes

5 Boosting economic activity and i nvesting in job creation in areas where poor and lowly skilled workers can participate and get benefits. In striving for sustainability, policy choices, and investment decisions should be arranged strategically in such a way that they not only address immediate problems but also build long-term resilience, strengthen the existing poverty alleviation program and targeted poverty reduction programs in asset building and economic recovery.

6 Promote regional cooperation to facilitate expedient cross-border movement of essential goods and services including medicines, medical equipment, foods, and other essential items. South Asian countries must work together to address the challenge of pandemic and fast and sustainable economic recovery.

7 Review and revise the policy priorities by withdrawing subsidies from fossil fuels and providing subsidies to green recovery, improving health facilities, boosting economic activities, and focusing on programs that alleviate poverty and vulnerabilities. The drop in oil prices offers an opportunity to withdraw the existing subsidies on oil and other fossil fuels and invest more on renewable energy sectors that support green jobs. Local food system should also be strengthened at community levels to improve local food self-sufficiency and nutritional outcomes.

Data Availability Statement

The original contributions presented in the study are included in the article/Supplementary Material, further inquiries can be directed to the corresponding author.

Author Contributions

GR, conceptualization, writing and rewriting; AN, AH, AM, SR, AL, PG, FA, AM, ES provided inputs.

Conflict of Interest

The authors declare that the research was conducted in the absence of any commercial or financial relationships that could be construed as a potential conflict of interest.

Acknowledgments

This research was supported under ICIMOD’s core fund. ICIMOD gratefully acknowledges the support of its core donors: the Governments of Afghanistan, Australia, Austria, Bangladesh, Bhutan, China, India, Myanmar, Nepal, Norway, Pakistan, Sweden, and Switzerland. The views and interpretations in this publication are those of the authors and are not necessarily attributable to ICIMOD or its member countries.

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Keywords: COVID-19, socio-economic impact, public health, Poverty and inequality, South Asia

Citation: Rasul G, Nepal AK, Hussain A, Maharjan A, Joshi S, Lama A, Gurung P, Ahmad F, Mishra A and Sharma E (2021) Socio-Economic Implications of COVID-19 Pandemic in South Asia: Emerging Risks and Growing Challenges. Front. Sociol. 6:629693. doi: 10.3389/fsoc.2021.629693

Received: 15 November 2020; Accepted: 15 January 2021; Published: 24 February 2021.

Reviewed by:

Copyright © 2021 Rasul, Nepal, Hussain, Maharjan, Joshi, Lama, Gurung, Ahmad, Mishra and Sharma. This is an open-access article distributed under the terms of the Creative Commons Attribution License (CC BY) . The use, distribution or reproduction in other forums is permitted, provided the original author(s) and the copyright owner(s) are credited and that the original publication in this journal is cited, in accordance with accepted academic practice. No use, distribution or reproduction is permitted which does not comply with these terms.

*Correspondence: Golam Rasul, [email protected] , [email protected]

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• March 3, 2021
• COVID-19 , Trust between Citizens & Institutions

Like all countries caught in the first wave of the COVID-19 Pandemic, the Ramaphosa government has had to take some tough decisions: ease into a hard lock-down regulation or take a softer but cautious approach. South Africa was quick out of the starting blocks opting for a hard lockdown that imposed strict curfew restrictions that only allowed certain essential sectors to operate, forced small and medium businesses to endure greater strain on their operations, limited social gatherings and urged social distancing and mask wearing as part of the personal protective measures. The harshest impact was on the alcohol and tobacco industries that saw the sale of these products being banned.

Prior to the onslaught of COVID-19, South Africa had slid into a technical recession by the end of 2019. This was the second time that the country had recorded a recession under Cyril Ramaphosa’s Presidency. By the start of 2020, the South African economy was experiencing some of its worst structural economic constraints : 

• Economic growth was recorded at 0.2%
• Agriculture was the main drag on the economic growth, contracting by 1.4%
• Formal unemployment reached 29% 
• Youth unemployment was the biggest concern, estimated at 53.18% with those younger than 25 years old comprising a rate of 58%
• Major credit rating agencies like Fitch and Standard and Poor downgraded South Africa’s sovereign debt from stable to negative
• The budget deficit widened to 4.5% due to revenue shortfalls
• State wages and spending constituted the highest spending of over 34% of consolidated expenditure in the 2019-2020 budget 
• Bailouts to distressed State Owned Enterprises continued, while
• Household debt constituted over 34% of GDP, meaning that more than one third of families across the country relied on debt as part of their household income.

A bleak picture underpinned the country’s socio-economic landscape. The situation was made more vulnerable by increasing inequality and the rise in basic food costs due to the volatility of the currency’s (ZAR) exchange rate which saw fuel hikes, in addition to electricity tariff income. The impact of wasteful government expenditure coupled by financial irregularities and corruption became an added burden to the socio-economic dilemma of the state. And so by the time the COVID-19 inflection point arrived, the country’s socio-economic stability was already in a fragile state of affairs. 

2021 will be much like 2020. The only difference this time around is that we have had a trial run and will hopefully be better prepared to absorb the shocks and pursue a coherent pathway to policy reform and better socio-economic outcomes. @SanushaNaidu Tweet

COVID-19: The First Wave: Tipping Point

During the first wave which took place between May – July 2020 and under level 5 lock-down measures, the intention was to flatten the curve and allow for emergency services like the medical health sector to be prepared as the infection and transmission rates increased. 

While President Ramaphosa and his government were praised for their expedient efforts to assuage the onslaught of the virus, criticism was levelled against the South African administration in terms of the debate relating to lives versus livelihoods. Given the economic predicament that faced the majority of the poor, vulnerable and marginalized, Ramaphosa and his cabinet had to reorient spending in the national budget. This took the form of a US$26 billion (constituting about 10% of the country’s GDP) relief package that saw:  

• the adoption of the Temporary Employer/Employee Relief Scheme (TERS) being implemented under the Unemployment Insurance Fund (UIF)
• Debt relief measures for Small and Medium enterprises negatively affected by the Pandemic, and
• The rollout of Social Relief Distress measures including additional monetary payments for child support beneficiaries, an unemployment grant for those not receiving any form of social assistance, and the disbursement  of food parcels to vulnerable households.

In the short-term, government’s response to the socio-economic effects of the pandemic were deemed appropriate to defray the socio-economic costs of an economy that was faltering. 

Delaying the Inevitable 

As much as the social relief grants were a stop-gap measure to ease the plight of the destitute as well as of an overburdened state, the restrictive measures of the level 5 lockdown regulations exposed the untenable circumstances that South Africa found itself in. For one, government did not have the kind of cash injection to rollout a stimulus package to underwrite the socio-economic costs of the pandemic. Government saw its economic reaction to stimulate a flailing economy caught between a rock and hard place. Austerity remained a single most important feature of government’s economic policy so as to retain the dynamics of the neo-liberal architecture of a market led approach and appease international investors.   

Second, the disconnection between the macro and the micro dimensions of the economy became overwhelmingly obvious. It was abundantly clear that cottage industries and small businesses operating in sectors like tourism were not able to absorb the costs of the pandemic. Unfortunately, this meant that those with a low skill base became casualties in the unemployment scourge. 

Third, by the time the country moved to lock-down level 3 restrictions, the war on the invisible enemy had become a battle of lives versus livelihoods. Food security was rife with female-headed households being the worst affected. This was as a result of businesses and industries collapsing with formal and informal employment opportunities taking on a bleak outlook.

Fourth, the ugly scourge of corruption and financial irregularities and tender fraud of government contracts for Protective Personal Equipment (PPEs) reared its ugly head. For instance the payments through the TERS programme had been frozen when it was discovered that the scheme was being defrauded by unscrupulous business owners who were not giving the money to their employees. Then there were the PPE corruption scandals , ranging from price collusion between retailers on masks and sanitisers to large-scale contracts that deviated from tender processes and were awarded to individuals that had close links to the ruling party. 

It became unconscionable that at a time of an unprecedented crisis, selfish material interests were put ahead of easing the pain and suffering of the many by ensuring that ‘A better life for all’ can be pursued. In addition, the scorecard on government achieving its implementation goals on the rescue package was viewed with mixed reactions. Bureaucratic inertia and institutional bottlenecks made the distribution of grants and relief measures that much harder. As the Institute for Economic Justice had outlined in their fact sheet ‘government needs to radically reduce onerous requirements, cumbersome processes, and stringent eligibility criteria’.

The Second Wave: Over the Tipping Point

In many ways the second wave, which occurred between December 2020 and January 2021, followed the first. The easing of lockdown measures did little to mitigate the risks in social behaviour. If anything, as lower lock down regulations took effect, the idea of a new economic normal returned to business as usual. The toll of the first wave saw people wanting to enjoy their civil liberties, while for the many of those employed in low cost industries, the necessity to keep a job and earn a living was much more important.

By the time the second wave with its new variant had embedded itself in the landscape of the country, South Africa was struggling to push through the recession. If anything the recession had become more acute and the festive holiday season saw another adjusted level three lockdown with mask-wearing becoming legally mandatory. But the dye had been cast and the socio-economic picture was bleak to say the least. 

In the Finance Minister’s budget speech delivered on 24 February 2021, the contextual analysis of the country’s economic and social situation was alarming. To this end:

• The economy contracted by 7.2%
• 2.2. million jobs were shed in the second quarter of 2020
• Unemployment spiked to its highest levels at over 32% in the fourth quarter of 2020
• Revenue collection from taxes dipped well below expected returns
• Less disposable income at the household level
• Poverty and Inequality was increasing 

The writing on the wall

The COVID-19 pandemic exposed the inevitable regarding South Africa’s socio-economic structural conditions. Issues of distrust were accompanied by levels of apathy towards the ruling elite in actually being able to address the pandemic. There were bigger existential questions in respect of whether state institutions were able to provide the necessary social services and protection to improve the lives of ordinary people. The conundrum that South Africa faced in the way that its socio-economic architecture was impacted by the COVID-19 crisis was that most of the challenges facing the poor and vulnerable were not due to the pandemic but rather to the bureaucratic nature of the state and its lack of efficiency.

As the country moves towards the local government election, it will be significant to monitor electoral behaviour of the majority of vulnerable and indigent that have been negatively impacted by the pandemic. The warning signs are already there where there does not seem to be much value being given to the democratic dispensation. Service delivery protests are becoming a daily feature of township life where material circumstances, lives and livelihoods have not changed. 

Even the middle class have felt the pinch of the pandemic. It is very likely that more middle class households will find themselves having to be prudent with their finances. 

Added to this is the exacerbating effect on foreign economic migrants who will have to deal not only with the harsh effects brought on by the virus but also xenophobic backlashes. 

2021 will be much like 2020. The only difference this time around is that we have had a trial run and will hopefully be better prepared to absorb the shocks and pursue a coherent pathway to policy reform and better socio-economic outcomes. The challenges for government is to be bold in its policy certainty, reduce an oversized and predatory bureaucracy and mitigate the risk of a third wave which South Africa cannot afford. 

Sanusha Naidu is a senior research associate with the Institute for Global Dialogue. She is a regular commentator on domestic affairs and foreign policy issues. The view presented is personal.

Article by:

Sanusha Naidu

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Top Ten Global Economic Challenges: An Assessment of Global Risks and Priorities

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February 1, 2007

To learn more about the critical issues and challenges facing the world today, explore  11 Global Debates , a collections of essays celebrating 10 years of research by the Global Economy and Development program at Brookings.

The beginning of 2007 offers a conflicting picture of the global economy for those trying to discern trends, challenges and opportunities. Concerns about energy security and climate sustainability are converging-finally bringing consensus in sight on the need for action in the United States, but prospects for breaking the global stalemate are still years away. While some developing countries are succeeding in bringing hundreds of millions out of poverty, too many are still mired in a doom spiral of conflict, poverty, and disease- despite the entry of new philanthropists, advocates and global corporations into the field of development. China’s projected 9.6 percent growth rate is sending ripples to the farthest reaches of the planet-creating opportunities but also significant risks. The United States remains in the “goldilocks” zone, but this is premised on continued borrowing from abroad at historically unprecedented rates while many Americans fret about widening inequality and narrowing opportunity. While the United States concentrates on civil war in the Middle East, most leaders in the region are preoccupied with putting an outsized cohort of young people to work and on the road to becoming productive citizens.

What are the most important challenges we face and what are the potential solutions? In Washington, D.C., where short-term political wrangling too often crowds out the harder and more important long-term challenges, this inaugural publication of Brookings Global Economy and Development seeks to put the spotlight squarely back on the most consequential issues demanding action. It seeks to size these issues, offering policymakers and leaders a concise and clear view of the critical challenges as viewed by leading experts in the field. From economic exclusion of youth in the Middle East to a pragmatic approach to energy and environmental security, this “top 10” is intended to mark core issues and shed light on opportunities and challenges with a broader and longer-term perspective.

When we gather a year from now, we would expect many of these challenges to remain front and central, but we would hope this publication would elevate their visibility and help sustain a dialogue on their resolution.

1. Energy and Environmental Security Warwick McKibbin and Peter Wilcoxen

Energy and environmental security has emerged as the primary issue on the global agenda for 2007. Consensus has recently been forged on the potential for long-term economic, national security and societal damage from insecure energy supplies and environmental catastrophe, as well as the intense need for technological advances that can provide low-polluting and secure energy sources. Yet despite growing global momentum, there is still little agreement on the best set of actions required to reduce global dependency on fossil fuels and greenhouse gas emissions. Confounding the international policy challenge is the disproportionate impact of high oil prices and global warming across nations, insulating some countries from immediate concern while forcing others to press for more rapid change.

2. Conflict and Poverty

Lael Brainard, Derek Chollet, Jane Nelson, Ngozi Okonjo-Iweala, and Susan Rice

In a world where boundaries and borders have blurred, and where seemingly distant threats can metastasize into immediate problems, the fight against global poverty has become a fight for global security. American policymakers, who traditionally have viewed security threats as involving bullets and bombs, are increasingly focused on the link between poverty and conflict: the Pentagon’s 2006 Quadrennial Defense Review focuses on fighting the “long war,” declaring that the U.S. military has a humanitarian role in “alleviating suffering, ? [helping] prevent disorder from spiraling into wider conflict or crisis.”

3. Competing in a New Era of Globalization

Lael Brainard, Robert Litan, and Wing Thye Woo

Is the new episode of globalization just another wave or a seismic shift? While individual elements feel familiar, the combined contours are unprecedented in scale, speed, and scope.

4. Global Imbalances

Barry Bosworth, Lael Brainard, Peter Blair Henry, Warwick McKibbin, Kenneth Rogoff, And Wing Thye Woo

Today’s interconnected world is in uncharted territory: the world’s sole hegemonic power, the United States, nurses an addiction to foreign capital, while up-and-coming powers such as China and oil exporters sustain surpluses of increasing magnitudes. Some worry that the world is at a tipping point, where only a dramatic shift in economic policy can alter the looming trajectory. Others see underlying structural factors perpetuating gross imbalances for a sustained period.

5. Rise of New Powers

Chong-En Bai, Erik Berglöf, Barry Bosworth, David de Ferranti, Clifford Gaddy, Xiao Geng, Homi Kharas, Santiago Levy, Leonardo Martinez-Diaz, Urjit Patel, Shang-Jin Wei, Wing Thye Woo

The rise of “emerging powers”-a group that usually includes the so-called BRICs (Brazil, Russia, India, and China), but which sometimes is applied more broadly to include South Africa, Mexico and others-is reshaping the global economy and, more gradually, international politics. Growing much faster than the rest of the world, these economies are changing the structure of international production and trade, the nature and direction of capital flows, and the patterns of natural resource consumption. At the same time, the growth of these countries is beginning to shift the global distribution of power forcing the great powers to come to terms with the reality that they will need to share management of international rules and systems in the coming decades.

6. Economic Exclusion in the Middle East

Navtej Dhillon, Caroline Moser, and Tarik Yousef

The Middle East has before it what could be one of the greatest demographic gifts in modern history-a potential economic windfall arising from a young and economically active workforce. Today, young people aged 15- to 24- years old account for 22 percent of the region’s total population, the highest regional average worldwide. With the right mix of policies, this demographic opportunity could be tapped to spur economic growth and promote stability.

7. Global Corporations, Global Impact

David Caprara and Jane Nelson

The private sector is becoming a significant player-indeed some might say the dominant player-in shaping the global economic and development agenda. Multinational corporations with operations that span the globe, and in some cases capacities and networks that match those of governments, have a particularly important role to play in helping to spread the opportunities and mitigating some of the risks of globalization.

8. Global Health Crises

Maria-Luisa Escobar, David de Ferranti, Jacques Van Der Gaag, Amanda Glassman, Charles Griffin, and Michael Kremer

From responding to the threat of pandemic flu to efforts to control the spread of HIV/AIDS, the world has begun to realize that global health issues are relevant for any citizen, regardless of nationality, residence or status. Despite improvements in the world’s collective ability to battle disease with advances in medicine and technology, global health needs remain unmet, making the entire world vulnerable to health crises. In particular, the poor continue to suffer disproportionately from inadequate health services, exacerbating their struggle out of poverty.

9.  Global Governance Stalemate

Colin Bradford, Ralph Bryant, and Johannes Linn

Today’s global challenges-nuclear proliferation, the deadlock of global trade negotiations, the threat of pandemic flu, and the fight against global poverty-cannot be solved by yesterday’s international institutions. To resolve the world’s most pressing problems, which touch all corners of the globe, we must adapt our global governance approaches to be more representative and thus more effective by encouraging and enabling the key affected countries to take an active role in generating solutions.

10. Global Poverty: New Actors, New Approaches

Lael Brainard, Raj Desai, David de Ferranti, Carol Graham, Homi Kharas, Santiago Levy, Caroline Moser, Joe O’Keefe

The challenge of global poverty is more urgent than ever: over half the world’s population-nearly 3 billion people-lives on less than $2 per day; nearly 30,000 children die each day-about 11 million per year -because they’re too poor to survive. With such a toll, addressing poverty in new and more effective ways must be a priority for the global policy agenda. Fortunately, a variety of new actors are bringing new perspectives, new approaches and new energy to the challenge.

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What are the Socio-economic Issues in South Africa?

• May 12, 2023

South Africa is a country that has undergone significant changes over the past few decades, from the fall of apartheid to the country’s first democratic elections in 1994. Despite these changes, the country is still facing significant socio-economic challenges. In this essay, we will examine what are the socio-economic issues in South Africa.

Unemployment

One of the most pressing socio-economic issues in South Africa is unemployment. According to the World Bank, the country’s unemployment rate was 32.5% in 2020, one of the highest in the world. This problem is particularly acute among young people, with more than half of those aged 15-24 out of work. Unemployment has a range of negative consequences, including poverty, crime, and social unrest.

Poverty is another significant socio-economic issue in South Africa. According to the World Bank, 55.5% of the population was living below the poverty line in 2020. This problem is particularly acute among black South Africans, who are more likely to be unemployed and live in poverty than other racial groups. Poverty is linked to a range of other social issues, including poor health outcomes, low educational attainment, and a lack of access to basic services.

South Africa is one of the most unequal countries in the world, with a Gini coefficient of 0.63 in 2020, according to the World Bank. This inequality is largely a result of the legacy of apartheid, which created significant disparities in income and wealth between different racial groups. Today, these disparities persist, with white South Africans on average earning significantly more than their black counterparts. Inequality is linked to a range of other social issues, including poor health outcomes, low educational attainment, and social unrest.

Education is another significant socio-economic issue in South Africa. While the country has made significant strides in improving access to education since the end of apartheid, there are still significant disparities in educational attainment between different racial and socioeconomic groups. According to UNESCO , the country has a literacy rate of 86.4%, but this varies widely depending on factors such as race, location, and socioeconomic status. Education is linked to a range of other social issues, including unemployment and poverty.

Healthcare is another significant socio-economic issue in South Africa. While the country has made significant strides in improving access to healthcare since the end of apartheid, there are still significant disparities in healthcare outcomes between different racial and socioeconomic groups. According to the World Health Organization, the country has a life expectancy of 63 years, one of the lowest in the world. This is linked to a range of factors, including poverty, malnutrition, and the high prevalence of HIV/AIDS.

Housing is another significant socio-economic issue in South Africa. According to the Census 2021, about 15.7% of households live in informal dwellings such as shacks and backyard structures. This problem is particularly acute in urban areas, where there is a shortage of affordable housing. The lack of adequate housing is linked to a range of other social issues, including poor health outcomes, low educational attainment, and social unrest.

In conclusion, South Africa is facing a range of significant socio-economic issues, from high levels of unemployment and poverty to significant disparities in income and wealth between different racial groups. Addressing these issues will require a range of interventions, from improving access to education and healthcare to addressing the shortage of affordable housing. While progress has been made since the end of apartheid, there is still much work to be done to create a more just and equitable society for all South Africans.

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Socio-economic Issues Essay Grade 11 Learning Materials

• Jun 14, 2023
• 1. Overview of Important Socio-Economic Issues
• 2. Business Solutions to Deal with Socio-Economic Issues
• 3. Industrial Actions
• 4. Labour Relations Act
• 5. Description of the Term “Trade Unions”
• 6. History of Trade Unions
• 7. Role of Trade Unions
• 8. Functions of Trade Unions
• 9. Download Socio-economic Issues Essay Grade 11 PDF

As Grade 11 learners, it is essential to develop a comprehensive understanding of the socio-economic issues that shape the world we live in today. These issues encompass a wide range of challenges arising from the complex interaction between society and the economy. In this essay, we will explore several important socio-economic issues and delve into business solutions, industrial actions, and the role of trade unions in addressing these challenges.

To begin, we will provide an overview of significant socio-economic issues that impact individuals, communities, and nations. These issues include income inequality, unemployment, poverty, education disparities, healthcare accessibility, and social justice. Understanding these challenges is crucial for developing a broader perspective on the interconnectedness between economic systems and social well-being.

Next, we will examine the role of businesses in dealing with socio-economic issues. Companies have the potential to contribute positively to society through initiatives such as corporate social responsibility (CSR). We will explore how businesses can implement sustainable practices, invest in community development projects, and promote fair wages and inclusive work environments. By doing so, businesses not only contribute to economic growth but also address pressing socio-economic concerns.

In addition to business solutions, we will explore the concept of industrial actions. These actions, such as strikes and protests, are employed by workers and trade unions to negotiate better working conditions, wages, and treatment. We will examine the importance of collective bargaining and how industrial actions can influence employers to address workers’ concerns. It is crucial to understand the impact of these actions on both workers and the broader economy.

To provide a legal framework for labor relations, we will discuss the Labour Relations Act. This legislation governs the relationship between employers, employees, and trade unions. Understanding the provisions of this act is essential to comprehend the rights and responsibilities of all parties involved and the mechanisms in place for resolving labor disputes.

Lastly, we will explore the history, description, and role of trade unions. These organizations have played a vital role throughout history in advocating for workers’ rights and addressing socio-economic issues. We will delve into the historical context in which trade unions emerged and the milestones they achieved. Additionally, we will discuss the functions of trade unions, including collective bargaining, representation of workers, lobbying and advocacy, training and skill development, health and safety advocacy, and social welfare initiatives.

By examining these various aspects of socio-economic issues, business solutions, industrial actions, and the role of trade unions, Grade 11 learners can gain a deeper understanding of the complexities of our economic and social systems. This knowledge will empower them to critically analyze and contribute to discussions on important societal matters, fostering a sense of social responsibility and encouraging them to become active participants in shaping a more just and equitable future.

Overview of Important Socio-Economic Issues

Socio-economic issues are complex challenges that arise from the interactions between society and the economy. They encompass various aspects of people’s lives, including income, employment, education, healthcare, poverty , inequality, and social justice. These issues have a significant impact on individuals, communities, and nations as a whole. In this essay, we will explore some of the most important socio-economic issues, as well as business solutions, industrial actions, and the role of trade unions in addressing these challenges.

Business Solutions to Deal with Socio-Economic Issues

Businesses play a crucial role in addressing socio-economic issues, as they are major contributors to economic growth and employment. Many companies recognize the importance of corporate social responsibility (CSR) and actively seek to mitigate the negative impact of their operations on society. They implement sustainable practices, invest in community development projects, and promote diversity and inclusion within their workforce.

Moreover, businesses can contribute to economic development by creating job opportunities, offering fair wages, and providing skill development programs. By prioritizing ethical business practices and responsible supply chains, companies can contribute to the overall well-being of society and help alleviate socio-economic issues.

Industrial Actions

Industrial actions, such as strikes and protests, are often employed by workers and labor unions to address socio-economic issues. When employees are dissatisfied with their working conditions, wages, or treatment, they may resort to collective action to negotiate with their employers. Strikes can disrupt business operations and put pressure on employers to address the concerns of the workers.

While industrial actions can be disruptive, they are an important means for workers to exercise their rights and advocate for better working conditions. It is essential for both employees and employers to engage in meaningful dialogue and find mutually beneficial solutions to prevent prolonged conflicts that can negatively impact the economy and society at large.

Labour Relations Act

The Labour Relations Act (LRA) is a significant piece of legislation in South Africa that governs labor relations and protects the rights of both employers and employees. Enacted in 1995, the LRA aims to promote fair labor practices, maintain industrial peace, and create a conducive environment for productive employment relationships.

The LRA provides a framework for collective bargaining between employers and trade unions, allowing them to negotiate employment terms and conditions, such as wages, working hours, and benefits. It recognizes the right of workers to form and join trade unions, as well as the right to strike, provided certain procedural requirements are met. The Act also sets out mechanisms for resolving disputes, including mediation, conciliation, and arbitration, to ensure fair and efficient resolution of conflicts between employers and employees.

Furthermore, the LRA establishes various institutions and bodies to enforce its provisions and regulate labor relations. These include the Commission for Conciliation, Mediation, and Arbitration (CCMA), which facilitates dispute resolution, and the Labour Court, which adjudicates labor-related matters. These institutions play a crucial role in upholding the principles of fairness, equity, and justice within the labor market.

The LRA has undergone amendments over the years to align with evolving labor market dynamics and promote social justice. It strives to strike a balance between protecting the rights of workers and enabling businesses to operate efficiently and sustainably.

Overall, the Labour Relations Act in South Africa serves as a vital legal framework that safeguards the rights of workers, promotes collective bargaining, and provides mechanisms for resolving labor disputes. It plays a pivotal role in maintaining harmonious and productive labor relations, contributing to the social and economic development of the country.

Description of the Term “Trade Unions”

Trade unions are organizations formed by workers to protect and advance their collective interests. They represent workers in negotiations with employers, advocate for better wages and working conditions, and protect workers’ rights. Trade unions operate in various sectors and industries, representing workers from different occupations, such as manufacturing, services, healthcare, education, and transportation.

Trade unions play a vital role in balancing power dynamics between employers and employees. They provide a collective voice for workers, allowing them to negotiate fair wages, safe working conditions, and other employment benefits. By advocating for workers’ rights and addressing socio-economic issues, trade unions contribute to creating a more equitable and just society.

History of Trade Unions

The history of trade unions in South Africa is deeply intertwined with the country’s struggle against racial discrimination, economic inequality, and social injustice. Trade unions emerged as vital platforms for workers to unite and advocate for their rights during the challenging times of apartheid.

In the late 1800s, as South Africa underwent industrialization, workers, particularly those in mining and manufacturing sectors, faced harsh working conditions, exploitative practices, and unequal treatment based on race. In response to these grievances, workers began organizing themselves into trade unions to confront these socio-economic challenges collectively.

One of the significant milestones in South Africa’s labor history is the formation of the South African Trades and Labor Council (SATLC) in 1918. The SATLC aimed to unite workers across racial lines and fought against discriminatory labor policies that favored white workers over their black counterparts. Despite the challenges of racial segregation, the SATLC played a crucial role in amplifying workers’ voices and advocating for better wages, improved working conditions, and fair treatment for all workers.

The 1940s and 1950s witnessed the growth of trade unions representing various racial and occupational groups, such as the African Mine Workers’ Union (AMWU), the Food and Canning Workers’ Union (FCWU), and the Garment Workers’ Union (GWU). These unions united workers across racial lines, challenging the divisive policies of the apartheid government and striving for a more equitable society.

The 1970s and 1980s marked a turning point in South Africa’s labor movement. Trade unions, such as the National Union of Mineworkers (NUM) and the Congress of South African Trade Unions (COSATU), emerged as powerful forces in the struggle against apartheid. They organized strikes, protests, and boycotts, demanding equal rights, improved working conditions, and an end to racial discrimination. The trade union movement played a vital role in mobilizing workers and building alliances with other anti-apartheid organizations, ultimately contributing to the dismantling of apartheid and the birth of a democratic South Africa.

After the end of apartheid, trade unions continued to be significant actors in South Africa’s labor landscape. They focused on addressing socio-economic issues such as unemployment, poverty, income inequality, and worker rights protection. Trade unions actively engage in collective bargaining, participate in policy-making processes, and advocate for the rights and well-being of workers across various sectors.

Today, trade unions in South Africa, such as COSATU, National Education, Health, and Allied Workers’ Union (NEHAWU), and National Union of Metalworkers of South Africa (NUMSA), continue to play a critical role in safeguarding workers’ interests and promoting social justice. They strive to create fair working conditions, protect job security, and address the ongoing challenges faced by workers in a rapidly changing economic landscape.

Role of Trade Unions

The role of trade unions extends beyond protecting the rights of individual workers. They serve as collective bargaining agents, negotiating with employers on behalf of their members to secure favorable employment terms and conditions. Trade unions strive to ensure fair treatment, non-discrimination, and equal opportunities for all workers.

Trade unions also play a crucial role in promoting social justice and advocating for societal change. They often engage in political activism to influence labor laws and policies that impact workers’ rights. By mobilizing their members and using their collective voice, trade unions can address socio-economic issues such as income inequality, workplace safety, and job security.

Functions of Trade Unions

Trade unions perform several functions to address socio-economic issues and protect workers’ interests. These functions include:

Collective Bargaining: Trade unions engage in negotiations with employers to establish collective agreements that outline terms and conditions of employment, including wages, working hours, and benefits.

Representing Workers: Trade unions act as representatives and advocates for their members, providing support and assistance in workplace matters, including dispute resolution and grievances.

Lobbying and Advocacy: Trade unions actively participate in political processes to influence legislation and policies that affect workers’ rights, social welfare, and economic equality.

Training and Skill Development: Trade unions often provide training programs and educational resources to enhance the skills and employability of their members.

Health and Safety Advocacy: Trade unions work to ensure safe and healthy working environments by advocating for workplace safety regulations, training programs, and appropriate protective measures.

Social Welfare Initiatives: Many trade unions engage in community development activities, including providing support for marginalized groups, promoting social inclusion, and addressing broader socio-economic issues.

Download Socio-economic Issues Essay Grade 11 PDF

In conclusion, socio-economic issues are multifaceted challenges that require collective efforts to address effectively. Businesses have a significant role to play in promoting sustainable practices and contributing to economic development. Industrial actions, guided by labor laws such as the Labour Relations Act, allow workers to voice their concerns and negotiate for better conditions. Trade unions have a long history of advocating for workers’ rights and addressing socio-economic issues. They serve as vital representatives, negotiators, and agents of change in promoting fair treatment, social justice, and economic equality for workers. By understanding and addressing these important socio-economic issues, societies can strive towards a more inclusive and equitable future.

• # Apartheid
• # Congress of South African Trade Unions
• # Corporate social responsibility
• # Economic inequality
• # Racial segregation
• # South Africa
• # Trade union

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Essay on Economic Issues In The Philippines

Students are often asked to write an essay on Economic Issues In The Philippines in their schools and colleges. And if you’re also looking for the same, we have created 100-word, 250-word, and 500-word essays on the topic.

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100 Words Essay on Economic Issues In The Philippines

The Philippines suffers from high poverty rates. Many people lack basic needs like food, shelter, and clothing. This is because jobs are scarce and many are low paying. The government is trying to create more jobs and improve living conditions, but progress is slow.

Unemployment

Unemployment is another big issue. There aren’t enough jobs for everyone. This leads to people not having money to buy things they need. The government is working on this problem by trying to attract more businesses to the Philippines.

Education in the Philippines is not always good quality. Many schools lack resources like books and computers. This makes it hard for students to learn and succeed. The government knows this is a problem and is working to improve schools.

Infrastructure

The Philippines needs better infrastructure, like roads and buildings. Poor infrastructure can make it hard for businesses to operate and for people to get to work. The government is investing in infrastructure to try to fix this problem.

Corruption is a big problem in the Philippines. It makes it hard for the government to improve the economy because money is not always used correctly. The government is trying to stop corruption, but it is a difficult problem to solve.

250 Words Essay on Economic Issues In The Philippines

Introduction.

The Philippines, a Southeast Asian country, faces numerous economic problems. These issues include poverty, unemployment, and corruption. Let’s explore these issues in detail.

Poverty is a significant problem in the Philippines. Despite the country’s economic growth, many people still live in harsh conditions. They struggle to afford basic needs like food, shelter, and education. The government is trying to reduce poverty, but progress is slow.

Another big issue is unemployment. Many Filipinos do not have jobs, especially young people. This problem is due to a lack of job opportunities and skills mismatch. A lot of people have skills that do not match the jobs available.

Corruption is also a major issue in the Philippines. It affects the economy because money that should be used for public services ends up in the wrong hands. This problem hinders economic development and increases poverty.

To sum up, the Philippines faces several economic issues. These problems include poverty, unemployment, and corruption. Solving these issues is not easy, but with the right policies and actions, the country can improve its economy.

500 Words Essay on Economic Issues In The Philippines

The economy of the philippines.

The Philippines is a country in Southeast Asia made up of over 7,000 islands. Its economy is mixed, meaning it has both private businesses and government involvement. The country’s economy has seen growth in recent years, but it still faces many challenges.

Issue 1: Poverty

One of the main economic problems in the Philippines is poverty. Despite economic growth, a big part of the population still lives in poverty. This means many people don’t have enough money for basic needs like food, shelter, and education. Poverty is more common in rural areas where farming is the main source of income.

Issue 2: Unemployment

Unemployment is another big problem. This means there are people who want to work but can’t find jobs. The COVID-19 pandemic made this worse, as many businesses had to close. The government is trying to create more jobs, but it’s a slow process.

Issue 3: Inequality

Inequality is another issue. This means that the wealth in the country is not shared equally. A small group of people own a big part of the country’s wealth, while many others have very little. This makes it hard for people to improve their lives.

Issue 4: Natural Disasters

The Philippines is often hit by natural disasters like typhoons, earthquakes, and volcanic eruptions. These disasters damage homes, roads, and businesses, which hurts the economy. The government has to spend a lot of money to repair the damage and help people recover.

Issue 5: Dependence on Overseas Workers

A lot of Filipinos work in other countries and send money back home. This money is a big part of the country’s income. But it also means the country depends a lot on other countries’ economies. If these countries face economic problems, it can hurt the Philippines too.

Ways to Improve

To solve these problems, the government is working on several things. They are trying to help farmers by providing better tools and training. They are also trying to create more jobs, especially in manufacturing and services. They are investing in education to give people better skills for these jobs. And they are working on improving the country’s infrastructure to make it more resilient to natural disasters.

In conclusion, while the Philippines has made progress, it still faces many economic challenges. By focusing on reducing poverty, creating jobs, reducing inequality, and improving resilience to natural disasters, the country can continue to grow and improve the lives of its people.

That’s it! I hope the essay helped you.

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