Possible political and economic repercussions of the Corona pandemic
Currently, international efforts are focused on understanding the nature of the Corona virus, in order to take appropriate preventive measures, or even find effective treatment to limit the spread of the epidemic, or to produce a vaccine for it, but the major political and economic impacts have not yet emerged.
- Politically: the world may witness an increasing decline in the influence of international organizations such as the United Nations, the European Union and others, due to the inability of these organizations to respond to the epidemic and take supportive measures for member states, as happened in Italy, which European Union countries were unable to support in light of the escalating crisis, after a failure The Italian medical sector absorb the size of the injured.
Possibly, international relations will become more closed in the post-Corona era, when the spread of the epidemic begins to decrease, and autoimmunity increases in response to it, because its spread and transmission from one country to another will likely leave impacts on international relations and will be paid to reshape them in a way that guarantees each country that They have control and control that allows them to move quickly to face any similar crisis, and this approach may encourage that countries have embarked upon the epidemic with their own efforts.
- Economically: the effects of the Corona outbreak began to appear on the economy, as the global export sector suffered losses estimated at 50 billion USD. It can be said that the economic effects will not be limited to this, but what appeared may be tantamount to exposing only the tip of the iceberg.
Significant difficulties, for the most part, may interfere with the process of restarting the interconnected global economy, as many countries may turn to the process of settling some industries and reshaping trade relations between them in anticipation of similar crises.
One of the expected repercussions of the Corona epidemic on the economy is the increase in government spending on the health sector and the establishment of infrastructure and social services to bridge the defects revealed by Corona, and this will naturally hinder efforts to diversify the resources that depend on creating huge investments.
Of course, negative effects can be expected on the economies of the countries where the Coruna virus appeared at first, such as China, which is currently suffering from a decline in industrial production and sales – the auto sector fell by 92% – which may continue even after the crisis recedes as a kind of decline in the confidence of other countries Trade with China.
In fact, the Corona pandemic may lead to the fading of the model of the concentrated countries that many countries depend on to provide the necessary inputs to the industry, and push them to rely on research on other alternatives and a basket of options to avoid the recurrence of the “China” model that many countries rely on to rent materials. Initially, this would substantially reformulate trade relations