The lockdown impacts at least 49 million people across the world are expected to fall into “extreme poverty” as a direct result of the corona pandemic crisis economic destruction and India leads that projection, with some 12 million of its citizens expected to be pushed to the very margins in 2020.
As per the International Labour Organization, it is estimated that the pandemic could reduce global working hours by nearly 7% in Q2 of 2020 – equivalent to 195 million full-time jobs.
Communities Suffering the Worst
According to estimates from the Center for Monitoring Indian Economy (a private-sector think tank), some 122 million Indians were forced out of jobs last month alone. Daily wage workers and those employed by small businesses have been hit worst by this pandemic crisis. This also includes roadside vendors, construction industry operators, hawkers, and many who squeeze out a living by pushing handcarts and rickshaws.
As per researchers, they said rural areas were the hardest hit, and the economic misery was the lockdown result, rather than the spread of infections in the remote areas. More than 80% of households had experienced a drop income and many won’t survive much longer without aid, as per the report.
The government has promised cheap credit to farmers, direct transfer of money to the poor, and eased access to food security programs, but these help people who have some documentation, which many of the poorest don’t. With millions of poverty-stricken people now in transit across the country, the food security situation is terrible, news reports are emerging of people search for food through piles of rotting fruit or eating leaves.
How to Handle the Pandemic Consequences?
As COVID-19 continues to sweep the nation and the world, businesses are looking for ways to stay productive in the face of unprecedented challenges. Businesses have moved to Virtual Recruiting and Online Interviewing of job seekers. From the usage of teleconferencing technologies like Skype and Zoom for interviews to virtual onboarding of employees has become the new normal.
Maintaining social distancing and keeping the current employees safe is the most important exercise followed by organizations presently which have revamped and re-institutionalized the dynamics of operating the organizations.
Despite the challenges Coronavirus has put in front of us, the pandemic has quickly broadened the innovator’s space by creating a solution-based approach in a very short span of time.
Businesses can also look at alternative options like checkout finance to make purchases affordable for consumers by quickly changing the total cost of purchase into small, affordable installments.
Solutions like no-cost EMIs for high-ticket items will encourage buyers to purchase need-based items such as air conditioners, refrigerators, etc. Supporting the MSME sector is crucial for overcoming the local and national economy. One such pathway of support can come from farsighted fintech lenders, who have the technological prowess to serve new-to-credit segments and geographically untapped clusters, and provide them the financial support they require during these challenging situations.