COVID-19 and reopening

Tuesday, 19 January 2021 01:22 - - {{hitsCtrl.values.hits}}

China, the epicentre of COVID-19, has recovered its momentum and ended 2020 in a remarkably good position, ready to resume its position as the fastest growing economy in the world. Despite recording the worst growth since 1976, which was the last year of the Cultural Revolution, China has bounced back and will undoubtedly continue to dominate global policy. And it managed to quell the virus before a vaccine was widely rolled out.

Gross Domestic Product grew 2.3% in 2020, official data showed on Monday, making China the only major economy in the world to avoid a contraction last year as many nations struggled to contain the COVID-19 pandemic. And China is expected to continue to power ahead of its peers this year, with GDP set to expand at the fastest pace in a decade at 8.4%.

The world’s second-largest economy has surprised many with the speed of its recovery from the coronavirus jolt, especially as policymakers have also had to navigate tense US-China relations on trade and other fronts.

Beijing’s strict virus curbs enabled it to largely contain the COVID-19 outbreak much quicker than most countries, while government-led policy stimulus and local manufacturers stepping up production to supply goods to many countries crippled by the pandemic have also helped fire up momentum.

GDP expanded 6.5% year-on-year in the fourth quarter, data from the National Bureau of Statistics showed, quicker than the 6.1% forecast by economists, and followed the third quarter’s solid 4.9% growth. Despite concerns by analysts that consumption was low on future virus breakout worries and potential tech-related battles with the US, the numbers have proven that China has bucked the COVID-19 trend.

During the past year China earned both bouquets and brickbats from the rest of the world with many blaming it for failing to adequately warn other countries of the seriousness of COVID-19 and rights organisations voicing concerns over the containment approaches followed by China. However, one thing that the rest of the world can certainly learn from China is that strictly implementing health guidelines, social distancing and proactively putting fresh measures in place can yield positive results.

While developing countries such as Sri Lanka do not have the fiscal firepower needed to provide large amounts of stimulus as being done by multiple other countries, including the US that recently approved a $1.9 trillion package, there is little doubt that tackling the virus is the best economic support a Government can extend. Successfully containing the virus is the number one priority of the Government, especially given the reopening of borders on Thursday and it is imperative that rules are followed and transparency maintained so the public know their interests are safeguarded.

The second aspect of COVID-19 that is getting more attention is the procurement and deployment of a vaccine. If, as reports have indicated, Sri Lanka is lagging behind in the vaccine race, it is then necessary to be open about it and disclose the reasons, process and policies under consideration in this ever-evolving situation. Acknowledging the need for transparency an opposition party has already proposed a parliamentary select committee.

The Government is free to decide how it wants to take forward the COVID-19 response but it must keep public safety and transparency at its core.