Question

Briefly discuss five (5) ways in which economic planning can be used to reduce the economic impact of global pandemics such as the Corona Virus in the future.

Answer 1

The first way is the focus on building health infrastructure and allocating significant funds to work on it such as building R&D capabilities, conducting test, having sufficient number of ventilators and medical professional as part of economic planning such as budgeting. It will help prevent creation of panic in the economy and economy will face lesser negative impact in comparison to what, it is facing today. The second way is to allocate and spend funds on public health to spread social awareness and first measures to be taken up individuals on their own. It will help stop prevention of pandemic in the communities and economy will be less affected. The third way is to build contingency funds that could be of 5% to 10% of the GDP that could be used to help different segments of salaried and working class people, small and medium size businesses and entrepreneurs. It will help keep boosting confidence among households and investors. It will help GDP to keep growing despite difficulties of pandemic scenario. The fourth way is to initial a formation of specific organization that works on collecting data, observes global events and forecasts possibility of occurrence of similar pandemic situations in the future. It should be the part of economic planning and provide key inputs so that government comes into action and take proactive approach in resolving the economic problems. The fifth way is develop strategic alliance with other nations of similar objective and collaborate via part of economic planning so that resource allocation takes place and different nations can provide inputs and work strongly . It will make nations share resources and prevent pandemic with relative ease. It will help save the economy in the future.