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Effects of Covid on poverty can be limited by balancing economic shutdown: Experts


Published : 05 Oct 2020 08:23 PM

Speakers at a conference said that the nature of the pandemic and the ways to tackle it have prolonged the fight against poverty.

The opined that the negative effects on poverty can be limited by balancing economic shutdown and the need to maintain livelihoods of the poor though this is a policy dilemma.

The observations were made in the concluding session of the SANEM International Development Conference (SIDC) on “COVID-19 and Development Challenges”, on Saturday.

South Asian Network on Economic Modeling (SANEM) organized the 3 day conference, began on October 1, 2020. 

The day featured a session on “Poverty and Human Development”, a session on “Country Experiences” and a panel discussion on the theme of the conference “COVID-19 and Development Challenges”. The panel discussion was attended by Professor Francois Bourguignon, Former Chief Economist, the World Bank, and Chair Emeritus, Paris School of Economics, Professor Kunal Sen, Director, UNU-WIDER and eminent Bangladeshi economist Professor Wahiduddin Mahmud.

In his opening remarks, Professor S. R. Osmani said, “Significance of a pandemic for poverty and development have never been so grave due to the nature of the coronavirus. The nature of the pandemic and the ways to tackle it have prolonged the fight against poverty.”  Eleanya Nduka, Lecturer, Department of Economics, University of Nigeria, Nsukka, and PhD Candidate, University of Exeter, UK, presented the third paper of the session, titled “COVID-19 lock-down measures and social protection in Nigeria”. 

The second session of the day on “Country Experiences” was chaired by Dr Mia Mikic, Director, Trade, Investment and Innovation Division of the UNESCAP, Bangkok. As the discussant was present, Dr Saikat Sinha Roy, Professor, Department of Economics, Jadavpur University, Kolkata, India.

The third paper, titled, “COVID-19 effects on SMEs in China”, was presented by, Dr Xiaobo Zhang, Senior Research Fellow, IFPRI, Washington D.C. The paper discussed the conditions, productivity, optimism and distribution of labour in the Chinese SMEs. 

Professor Bourguignon said, “During this crisis, economic recession is likely to raise absolute poverty with unambiguous effects on inequality.” He discussed in details different aspects of policies undertaken by LDs and Developing Countries to tackle the pandemic. 

Addressing the context of Bangladesh amid the ongoing global crisis, Professor Wahiduddin Mahmud remarked, “What should concern us now most is the lingering effect of the lockdown, on the prospect of economic recovery and restoration of livelihoods of the poor, given the ongoing health crisis.” 

Eminent Economist Professor Rehman Sobhan also joined the virtual session and shared his insights and observations. He pointed out, “The notion that exists in South Asia regarding reducing poverty, which is largely derived from improved GDP growth, has to be reconsidered.” 

Following an open discussion, Dr Selim Raihan delivered the closing remarks. He thanks all the panelists, chairs, discussants, paper presenters and participants of the web-conference.