The COVID-19 pandemic has affected the whole of humanity. The SARS-COV-2 virus has caused various impacts in different parts of the world. Based on projections by the UN Economic Commission for Latin America and the Caribbean (ECLAC), there was a 9.1% decrease in regional economic growth in 2020, a 13.5% rise in unemployment, and an increase in the poverty rate of 7.0 percentage points. These numbers are worrying, but experts have come up with some solutions. Check their insights below.
What are some solutions for Caribbean nations that could help to mitigate the impact of COVID-19?
“Global acknowledgement of vulnerability as well as the Caribbean’s unwavering commitment to building resilience domestically and by invitation are the common threads that must be sown into the fabric of an economy, society, and environment in a post-COVID context for the Caribbean. The economy and society must evolve sufficiently to permit them to absorb and flexibly rebound from internal and external shocks. One of the ways to do this is to increase the capacity of the domestic market and economy to sustain themselves if a global threat, whether to the extent of COVID-19 or lesser, again threatens destabilization. That is, focus on firing the pistons of domestic economic activity – with less reliance on fiscal measures. Society as a functioning capillary must remain intact for the sake its own authenticity (societal identity, culture, music, expression, uniqueness) and posterity. Furthermore, a society facing a global threat must be careful not to abandon its vulnerable and at-risk populations – the elderly, children, homeless, unemployed, mentally and physically challenged. It must therefore have the budgetary wherewithal to house, aid, rescue, and protect its most vulnerable members. Finally, Caribbean economies must protect the environment up to the level of its value to the economy which, for Caribbean economies, is high due to the GDP generated from tourism and its related and dependent activities.”
“To face the collateral effects of COVID-19, advances in 1) closing the technology gap, 2) stimulating innovation and 3) a more efficient relationship among economic agents is fundamental in the Caribbean region. The design and promotion of public policies based on new technologies and green economy will offer a new range of instruments that will aim at increasing productivity levels in key sectors such as health, education, and tourism. The impact on these sectors will have ripple effects on the rest of the economy resulting in more robust economic growth, better job opportunities, and a gradual reduction in inequality. To achieve these goals, a joint effort from households, companies, and governments is relevant to effectively address and reverse the effects of the pandemic at the national level.”
“The economies of Latin America and the Caribbean will not recover until 2023. In Caribe, Granada, Antigua and Barbuda, Dominica, and the Dominican Republic could see recovery before 2022, Saint Lucia will have greater growth. Trinidad and Tobago, Haiti, and Jamaica will have minimum growth, inflation and debt will increase in some economies. Strategies must be different. For economies with inflation, indebtedness and strategic resources, it is recommended to put in place: a) economic policies for promoting investment, b) fiscal reforms, c) Works for taxes (Oxl) and Government to government (G2G). The presence of NGOs, the Escazú Agreement, and corruption should be evaluated. In the case of economies based on tourism, there are two scenarios with the new USA government. The pessimistic scenario is about increased restrictions where tourist flow increases by 30%. The optimist scenario means that the tourist flow and transport increase by 50%. The free market and trade are important, commodity-exporting countries such as Trinidad and Tobago, Barbados and the Dominican Republic could see lower demand which will generate higher prices and fiscal deficits. In this case, it is recommended to: a) redefine production based on internal demand and b) establish tripartite strategies: tourism, production and trade.”
“Tourism has been one of the sectors most affected by the COVID-19 pandemic and it is an activity of vital importance to Caribbean nations. In 2018, tourism represented 21.6% of GDP but during the period January-August 2020, the number of tourists fell by 64% according to the Economic Commission for Latin America and Caribbean (ECLAC). A short-term solution to revive tourism is to focus on a more regional tourist market, developing packages for countries such as Mexico and Central America, applying the relevant biosecurity protocols. Furthermore, this region requires the major development of financial services through technology, promoting innovation with Fintech Platforms that facilitate transactions in hotels and restaurants, giving opportunities to local entrepreneurs for their creation. At the production level, it is necessary to reduce dependence on primary goods and encourage innovation to manufacture value-added products to increase local production and exports, especially in large economies such as the Dominican Republic and Trinidad & Tobago. This will boost demand for better-skilled workers and the generation of better-paid jobs. It will be fundamental to creating the training programs that the industry requires. Innovation will be vital to overcoming this crisis.”
“In this region, particular attention should be given to indigenous communities, especially with the development of specific healthcare assistance. Gender inequality is also on the increase with women being more economically vulnerable, facing increased domestic violence, and being overwhelmed by the amount of care and domestic duties they perform. Poor communities are plunging into greater poverty and, by not attending school, most children are out of education and more exposed to abuse. But simply addressing these issues will not suffice. In order to be effective, policy-making processes should promote the active engagement of these different stakeholders. And, once the pandemic is finally under control, implementing a recovery plan with a human rights approach will be crucial to putting the region back on the path of sustainable growth and promoting the end of all inequalities.”
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