The COVID-19 Pandemic and ‘Emerging & Developing Economies’

Abstract

Almost two years have passed after the outbreak of the COVID-19 pandemic in Wuhan, China.

The infection has repeatedly attacked, moving around the world, centering the US, India, Brazil, etc. and producing mutant strains with strong infectivity. The COVID-19 virus simultaneously attacks nodes through the network that economic globalization has created for the last half century, severely damaging economies. The struggle against the COVID-19 is shifting from short-term containment of virus to co-existing, to a certain extent, with the virus and recovering economic activities by improving the immunity of societies as well as providing financial support. The attacks of the COVID-19 on the world economies have structural characteristics: jumping over time, from the advanced economies to ‘emerging and developing economies,’ and from emerging middle-income economies to low-income economies. While governments in developed economies proceed with vaccination of people with abundant financial support, and support economic recovery and digitalization by taking economic stimulus measures, governments with poorer budgets are limited in financial support and people are deprived of vaccination in ‘emerging and developing economies.’ They are structurally facing more economic difficulties and risks from the COVID-19. In addition, this international structure is involved in the hegemonic struggle between the US and China. A simultaneous COVID-19 and economic recovery of ‘emerging and developing economies’ will definitely take a much longer time than in advanced economies. Currently, most sought after is the strengthening of international cooperation for financial support and equal distribution of vaccines, which will ensure economic recovery not only in ‘emerging and developing economies,’ but also in developed economies.