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COVID-19 Pandemic Recession and Recovery

Author

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  • K. S. Jomo

    (Khazanah Research Institute)

  • Anis Chowdhury

    (Western Sydney University)

Abstract

This review draws pragmatic lessons for developing countries to address COVID-19-induced recessions and to sustain a developmental recovery. These recessions are unique, caused initially by supply disruptions, largely due to government-imposed ‘stay-in-shelter lockdowns’. These have interacted with falling incomes and demand, declining exports (and imports), collapsing commodity prices, shrinking travel and tourism, decreasing remittances and foreign exchange shortages. Highlighting implications for employment, wellbeing and development, it argues that governments need to design comprehensive relief measures and recovery policies to address short-term problems. These should prevent cash-flow predicaments from becoming full-blown solvency crises. Instead of returning to the status quo ante, developing countries’ capacities and capabilities need to be enhanced to address long-term sustainable development challenges. Multilateral financial institutions should intermediate with financial sources at low cost to supplement the International Monetary Fund’s Special Drawing Rights to lower borrowing costs for relief and recovery.

Suggested Citation

  • K. S. Jomo & Anis Chowdhury, 2020. "COVID-19 Pandemic Recession and Recovery," Development, Palgrave Macmillan;Society for International Deveopment, vol. 63(2), pages 226-237, December.
    • Handle: RePEc:pal:develp:v:63:y:2020:i:2:d:10.1057_s41301-020-00262-0
    DOI: 10.1057/s41301-020-00262-0
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    References listed on IDEAS

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    1. Weicheng Lian & Mr. Andrea F Presbitero & Ursula Wiriadinata, 2020. "Public Debt and r - g at Risk," IMF Working Papers 2020/137, International Monetary Fund.
    2. Gallagher Kevin & Ocampo José Antonio & Volz Ulrich, 2020. "Special Drawing Rights: International Monetary Support for Developing Countries in Times of the COVID-19 Crisis," The Economists' Voice, De Gruyter, vol. 17(1), pages 1-06, December.
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    Cited by:

    1. Veysel INAL & Serif CANBAY & Mustafa KIRCA, 2023. "Determinants of Food Prices in Türkiye: Fourier Engle-Granger Cointegration Test," Journal of Economic Policy Researches, Istanbul University, Faculty of Economics, vol. 10(1), pages 133-156, January.
    2. AlQershi, Nagwan & Saufi, Roselina Binti Ahmad & Ismail, Noor Azizi & Mohamad, Mohd Rosli Bin & Ramayah, T. & Muhammad, Nik Maheran Nik & Yusoff, Mohd Nor Hakimin Bin, 2023. "The moderating role of market turbulence beyond the Covid-19 pandemic and Russia-Ukraine crisis on the relationship between intellectual capital and business sustainability," Technological Forecasting and Social Change, Elsevier, vol. 186(PB).

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