Examining How Countries Are Positioning Themselves For The Pandemic And Economic Uncertainty

Written by Smart Olawale and Thales Kroth de Souza .

The United State is having it tough trying to hold on to the global power lest it rolls down to Xi's China, who are obviously coordinating a strategic and commendable global response and doing a great job domestically as regard the COVID'19 Pandemic.

Governments of other countries are not having it any easier too. Apparently, the coronavirus pandemic will lay bare the rottenness of states’ governments if leaders fail to coordinate a restorative response to the global emergency.

Experts have already predicted that things are never going to remain the same after COVID, though the changes are things that will only be known when they unfold in the future. Around this uncertainty is the scurrying effort of governments to position their states for the present situation and aftermath of the Coronavirus.

So far, the measures adopted by most countries are similar. Due to the highly contagious nature of the virus, countries enforced lockdown on citizens, encouraged the use of face masks and preached social distancing.

The virus definitely caught many countries off guard, as there are already worries about how the economy will get by if the lockdown continues longer than expected.

Recently, the position of companies is to follow the recommendations of the local authorities in accordance with the rules and the sense of “quarantine” in order to gradually make the economic and social opening of businesses more flexible.

In Brazil, there were questions about which orientation to follow mainly and the country's governance started quarantining with the closing of shops and services, trying to reduce the impacts of the pandemic, brought protection instruments, purchase of respirators, masks and waited for tests and survey determine the next position.

The marketing of Brazil was severely affected due to the lack of political alignment of government officials and there were changes in authorities, constantly disputed by the image and extrapolation of marketing.

With the increasing number of deaths, but with enough and strategic preparations, several cities obtained the adequate infrastructure to face the COVID-19 pandemic as recommended, but they had image problems due to the lack of economic weakness.

The attractiveness of several cities and companies in the face of the pandemic led to a weakening of business, strengthened digital marketing, destabilized micro and small enterprises. Economic surveys such as that of SEBRAE (Brazilian Micro and Small Enterprises' Support Service) show that more than 600 thousand companies went bankrupt.

The IMF (National Monetary Fund) described the pandemic as the biggest global crisis since World War II. According to FGV (Getulio Vargas Foundation), 43% of the companies had negative impacts in March 2020 and several large companies requested judicial reorganization, which caused the vote in the Chamber of Deputies of Brazil to vote on projects that make companies and businesses more flexible to obtain credit offers, resources through public and private banks to face the moment.

The Federal Government of Brazil will make approximately R $ 115 billion available to more than 60 million people, divided into instalments and a payment table, registered by an application of Caixa Economical Federal (Federal Savings Bank), analyzed by Dataprev (Social Security Technology and Information Company) organ linked to the Ministry of Economy and made available again by Federal Savings Bank.

The commercial reopening will take place gradually in the states and municipalities according to the strategy of medical assistance and control of the number of deaths and infected.

There is also an almost similar story in the Sub-saharan. In April, the World Bank had predicted that the continent’s economy could shrink by 5.1% and could suffer recession for 25 years as the impact of the Coronavirus outbreak, especially in the face of the lockdown strategy.

Already Bloomberg had reported how the strict lockdown in South Africa hampered the country’s sales. Countries in the continent whose economic dependence is majorly crude oil are faced with realities following a fall in crude prices. And the private sector continues to record low sales volume.

In a country like Nigeria, there is deflation.?Locally made agricultural products that are harvested in this period are sold at unprofitable rates due to the interstate travel restrictions.?

The informal sector suffers indeed because of the lockdown and people are afraid that any elongated severe negative impact on the sector which contributes immensely to the national GDP of the country and constitutes largely to the labour force figure may start validating the Africa Union report that said nearly 20 million jobs in the African continent is threatened.

It is, therefore, no surprise that African countries are beginning to ease the lockdown restrictions and instituting committees to assess risks and set guidelines. Though, Africans seems not to have come to the realities of the Coronavirus pandemic yet. There are wide beliefs that the figures released, especially in Nigeria, are either false or doctored.

While social media data (for example the result of the online poll conducted by Lagos State and Ogun State government conducted) agrees that Nigerians want the lockdown to continue, their attitude when restrictions are eased is not reflecting the precautionary motive of the lockdown. The social distancing rules are defied and there are no effective uses of the face masks.?

There is great news in the midst of this: in Africa, there is a new wave of sensitivity to digital disruption.

In the same vein, more strategies are adopted as commercial tests and openings continue. Without a doubt, these are new times for business and interactivity with customers for companies to manage their cash generation.

Informal jobs are already leading the way for millions of people to secure resources to pay debts; according to the analysis and information company for credit decisions and business support Serasa Experian already counted approximately 65 million defaulting consumers for March 2020, a complicated scenario in local and regional economies.

After cases of corruption of public entities were discovered such as the ‘Mensal?o’ in 2005 and ‘Petrol?o’ since 2014, here comes the ‘Covid?o’: operations and investigations are already underway on overpricing of hospital equipment, contracts without bidding, supposedly diverse public deviations in municipalities and states.

Citizens around the world will have to face the new normal with suspected cases of COVID-19 and in recovery by reducing and trying to reduce negative impacts on commercial practices for the return of job creation and emerging economies.

The interesting contrasts for therapy to cope with the crisis are the tools and support for micro and small businesses that gain visibility in virtual commerce. Negotiating deadlines, resources, guarantees, there are several uses to negotiate more breath for the company and survive at the moment.

Competitions tend to return gradually like sports, but without an audience for now as in Germany, a unique example now, and different to follow the new sports calendar. They are new winds to continue life.

And despite the strengthening of the economy, domestic hope seems to be the engine for the revolution from the digital phase, reflecting in various sectors consequently. The certainty is already answered by the recruiters in the forms of recruitment and remote work, being adjustable according to the demands of results.

The behavioral and reflective skills of the video interview already point to the next adversities such as those born after 2000, the Millennials, which are more intense, urgent and inconstant for questions. For 74% of recruiters, born after 2000, they get frustrated more quickly and may be the public most affected by the pandemic on their return to work (source: Catho).

A new wave of insecurity may spark new horizons, but part of the population's complete understanding already knows: it is always good to be prepared for unforeseen events and crises, whether economically through financial education, or psychologically to face adversity.

The conclusion for any effect is still to remain focused and the hope for the feeling of healing rediscovered of the greatest good that everyone has: the power to start over.