Priorities in the post-Covid-19 era

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The coronavirus (Covid-19) pandemic has caught nearly every country off-guard, requiring painful adjustments to the new reality. Bangladesh is also not an exception. However, Bangladesh has relatively well-managed the acuteness of the pandemic, and its own impacts on economy and society are less extreme than many other economies, including developed kinds in north America and Europe, and other neighbouring countries in South Asia.

A key factor behind the relatively less extreme economic impacts in Bangladesh may be the recovery of domestic consumption, fuelled partly by remittances from abroad. In addition, stimulus and social protection packages and pragmatism displayed by the federal government in slowly but surely loosening the lockdown and ensuring continuation of economical activities, have helped maintain a moderate pace of monetary growth. The recent progress of the Covid-19 vaccine development raises hope that financial activities in major export destinations of Bangladesh will return to normal by mid to late 2021.

The experiences through the pandemic, however, give an chance to think about key development strategies and observe how these can be recalibrated to deliver a far more inclusive, resilient and sustainable future.

The pandemic highlighted significant inadequacies and inefficiencies in the healthcare sector and social protection schemes. Public healthcare spending in Bangladesh is probably the lowest on the globe and has led to severe under-investment in public healthcare facilities. In the post Covid-19 era, public expenditure in the health sector should be considerably increased. The introduction of a universal healthcare system is a key priority. A leaner and more capable administrative structure of relevant agencies will help in effective management of the expanding health expenditure. A more efficient healthcare administration would also help with prudent utilisation of funds for various emergency projects taken through the pandemic.

There are about 125 social protection schemes currently managed by the federal government in Bangladesh. However, various non permanent social support measures were introduced to fill the gaps in the face of prolonged lockdown. In a post Covid-19 era, the social protection schemes could be mainstreamed with an increase of budget allocation, wider coverage, better targeting, and strengthened administration and effective delivery to the beneficiaries using digital technologies.

Informal businesses faced extreme challenges during Covid-19. Appropriate policy measures ought to be developed to inspire formalisation of the informal businesses, including easier usage of finance and incentives for cottage, micro, small and medium enterprises to create occupations and jobs.

Supply chain disruptions has created a desire among major trading economies to diversify their supply chains. In the post Covid-19 world, Bangladesh can capture such opportunities by concentrating on improving the business enterprise climate, simplifying business regulations, and aggressively marketing its endowments such as for example less expensive skilled labour, strategic location and new monetary zones. The pandemic in addition has highlighted the value of e-commerce. Development of new startup ventures in e-commerce ought to be encouraged with appropriate policy and financial support for the seamless flow of commodities.

The pandemic has also exposed the inadequacies in the training sector to utilise technology for online education. Improving the delivery and quality of online education ought to be a key priority in the post Covid-19 era with particular attention to rural and lagging areas. Enhancing the caliber of education at all levels beginning with primary to tertiary level, and technical and vocational education and training (TVET) to boost skillsets of its workforce, ought to be pursued vigorously. An excellent labour force with appropriate skills will be an essential conduit of a competitive and drastically changing business climate in the post pandemic era.

The pandemic in addition has outlined the necessity for quality infrastructure investments, particularly in cities. Developing smart public transport systems in large cities should be an integral priority. Reliable, uninterrupted electricity supply and internet connectivity are prerequisites to provide essential services such as for example home based, education, healthcare, food supply services, online businesses and social protection services. Adopting a national grid code, together with upgrading the transmission and distribution infrastructure and increasing the internet bandwidth through better digital infrastructure, should be key priorities. Increased focus ought to be directed towards clean water access and modern sewerage facilities in cities.

Reshaping rural areas as monetary centres is a crucial lesson from the pandemic. Localisation of growth can facilitate equitable monetary growth through the entire country. Launching of programmes such as for example One Village, One Product (OVOP) or One District, One Product (ODOP) could create local employment, strengthen rural ecology and rejuvenate local economies. Accelerated implementation of the government's "My Village My Town" programme provides urban amenities to the doorsteps of rural dwellers.

Agriculture and rural non-farm sectors should be given more importance in light of the recent reverse migration due to the pandemic as well as a risk of food scarcity. Modernisation of agriculture for increased productivity and developing robust supply chains for agricultural products should be key areas to spotlight. Agricultural logistics systems ought to be strengthened to directly link the farmers and small agri-entrepreneurs to the consumers, curtailing the influence of the middlemen. Focus on research and development (R&D) in agricultural products can pave just how for increased food security and export potential.

The private sector will play an essential role in the post-pandemic era. Prudent fiscal and monetary policies ought to be formulated in order that they benefit the sectors that fit in the brand new norm after the pandemic. Enough liquidity should be provided to those sectors with proper regulatory reforms. Borrowings from international financial markets and multilateral institutions ought to be wisely planned in order that the sectors with strong investment needs could be adequately supported. Reforms in the financial sector will be critical to enhance resilience of the economy.

Building financial resilience, diversifying trade and production networks, and boosting business competitiveness and agility are at the core of monetary recovery in the post pandemic era. Assessing monetary vulnerabilities through risk assessments and preparing policy responses such as for example easier usage of finance, incentives for new industries, trade agreements for deeper linkages to regional and international markets, and improved trade facilitation and international logistics can all help make the economy resilient to future shocks. Adopting agile management practices, connecting to digital platforms, digitalisation of value chains for increased quality, traceability and compliance are other actions that can help businesses compete, sustain and prosper in the brand new normal.

Although the pandemic is still on, and the second or third wave is raging in lots of countries and regions, the development of vaccines is progressing well and recently reported successes provide hope for the brand new year. As the world cast its sight towards a post Covid-19 era, Bangladesh must prepare for a new normal predicated on lessons from the pandemic. With relatively less fatalities and monetary damage from the pandemic, Bangladesh is well positioned to move forward vigorously with reforms. The once in a century pandemic can start once in a hundred years opportunities for a young, resilient and vibrant nation like Bangladesh. Prioritisation and pragmatic policy shifts will be the needs of the hour.

Source: https://www.thedailystar.net

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