Question

It has been very interesting to watch the impacts that the Coronavirus is having on the China economy right now. You mention that socialism stems from a village mentality. What complications, if any, may exist for that type of economic philosophy on a larger scale in your opinion?

Answer 1

Answer: Outbreak of Corona virus or say COVID19 from China's Wuhan which is its epicentre as well as hub of China's pharmaceutical industry have not only impacted Chinese economic supply chains but it has equally impacted world's supply chains also.

Its true that China is politically based on the ideology of socialism for which its said that It used to emerge from Villages in a sense that it enters in to society from back door. where there is economic disparity or excessive inequalities have their presence,it can be a good breeding place for Communism whose different form is Socialism.

Although China's Political system based on Socialism ideology and principles where state has got supreme position of decision regarding social,economic as well as political but it can not be ignored that China has opened its economy way back in 1970s (although on rules that suits it) and it has become A manufacturing hub of world often called as Factory of Goods.

Hence in such a time where A Pandemic spread from China it has affected it as well as other countries of world that linked to it whether they follow Capitalistic or mixed economic System.

During Such Pandemic outbreaks similar to SARS in way back in 2003 from China,many complications such type of economic system can witness on large scale like:

Economy which is largely dominated by Centralised approach hence follow top to bottom strategy even in dealing with such virus outbreak situations also.

Similar situations happened hence time was wasted in between while waiting for higher orders.

Other problems are like exact data and numbers regarding such disruption can be manipulated and which can be more fatal.

Many Disruptions in such economic system which focus on centralised system can be witnessed like issues of social security, job loss from the view points of Firms which will try to exit the country etc.