The current situation of the world is in shambles due to the sudden hit of the COVID-19. The pandemic has not only taken thousands of lives but has also put a threatening paw on the livelihoods of many. All across the world, hundreds and thousands have been stripped off their means of income and are struggling to find a way to make ends meet. Before the pandemic, there has been a steady rise in emerging markets sourcing and the developing economies were having consistent growth. This was slowly but steadily bridging the gap between the incomes of the poor and rich. With an unexpected stop in the economy flow, the gap is now wider than ever with no way out.
A few developing countries already have a large section of unemployed youth; the pandemic is likely to increase the unemployment bigger than ever. Studies have shown that COVID-19 has had an immense effect on the men and women belonging to the lower strata of society. To estimate the range of effects on inequality, experts have explored a few facts.
Where To Work –
The option of working from home has become crucial in everyone’s life in these trying times. However, this path is open mostly for the privileged class and the low-income workers have no means of doing so. Due to this, many sectors faced unemployment in the initial days of lockdown and are now in dire need of jobs. This unfortunate income distribution has suffered greatly more in the emerging markets sourcing and developing countries.
Losing their jobs would result in increasing the gap between the rich and poor, thus affecting the chain of the economy.
Welfare Will Suffer –
The first hit of the rising inequality will be inflicted upon the living means of the commoners. People’s well-being has gone into a toss due to the after-effects of the pandemic and everyone is trying to cope with the failing situation. A welfare measure, that includes the major changes in one’s life, shows how badly the economy has been affected by the pandemic. A fall of almost 8% has been recorded by the welfare measure which is quite alarming. The GDP of many developing countries has fallen beyond imagination and is calling for extreme measures for revival.
Everyone everywhere is struggling to reduce the income gap and is trying their best to bring the flow of cash back to normal. This would surely take some time in the emerging markets sourcing but can be done effectively with some strategic steps. Firms and individuals alike have to adapt to some changes in order to get back on track. Social assistance, expanding eligibility criteria, promoting financial inclusion and providing access to the internet are some of the low-key options for survival. The government must take extra care of the low-income households for they are the worst sufferers. There lies a bright future beyond the present crisis, and time and strategy will surely overcome the hurdles.
Sourcing Instinct 