How can a country shield its citizens and economy from extreme short term and long term adverse effects following the covid-19 crisis? Countries such as Norway, Singapore, and China have experienced 4,651 cases, 926 cases, and 81,554 cases as of April 1st, 2020, respectively (“Coronavirus Cases”). These countries have been forced to take extreme measures with China and Norway undertaking total lockdown. The actions have impacted the economic health and citizens’ working procedures. Consequently, the three nations are at the risk of experiencing a national food security crisis and economic recessions. It is critical for countries experiencing the Covid-19 crisis to design effective measures for economic recovery and national food security in the short-term, during the crisis, and long term periods.
A country should design outstanding practices to promote economic recovery to prevent the effects of Covid19. The Norwegian government offers a suitable example of how governments should act. Firstly, the authority has ensured an alteration in corporate tax laws. Companies that are experiencing losses can allocate their losses to the taxed incomes in the past years. Additionally, investors of lossmaking companies can reschedule their wealth tax payments to the future. The postponement of wealth tax makes it sure that companies must not pay the dividends required to cover the wealth tax (“The Government Act”). The use of taxes is critical in promoting economic recovery.
Secondly, the government has input measures to help in the aviation industry. The aviation sector is the most affected during the crisis, with most countries suspending international flights. Aviation charges have been suspended until June 31st, 2020. Additionally, the government has put off the taxes on air travellers for flights between January 1st, 2020 and October 31st, 2020 (“The Government Act”). These measures are essential in safeguarding the aviation sector from causing a potential prolonged economic recession.
Additionally, the Norwegian government has offered financial and competence support to companies affected by the Corona Virus outbreak. The state has strengthened the procedures for companies affected by the pandemic to provide their employees with in-house training. The authority has also released grants to the counties for funding the local businesses (“The Government Act”). The procedures are critical in preventing extreme losses and economic downtime.
National Food Security
Coronavirus outbreak has strained the supply chain in countries such as Norway, Singapore and China, among others. The governments of the affected nations should design ways to prevent extreme cases of food shortage in the short run and long run. Governments should first attend to meeting the immediate needs of vulnerable populations. To start with, the government can launch procedures to feed children, whether at school or home during the crisis. Authorities working with local leadership can establish food banks and communities’ associations to feed children locally. The banks should run until the country has stabilized its food supply system (Cullen 13). such a procedure is critical to prevent vulnerable children.
Societies across the globe have different economic and food storage strengths and weaknesses. The government can partner with humanitarian organizations to launch food donations from individuals with surpluses. Preferably, donors can provide dry foods that can then be distributed to the needy such as the poor, children, and the elderly (Cullen 16). These donation plans can also run for a significant period until the country is stable again.
Lastly, the government can provide a price ceiling and floors for costly and cheap food items, respectively. These procedures can prevent low income for farmers, who may be discouraged from farming due to low income and losses. Additionally, the method prevents extremely high prices for the end consumer, which may deter buying (Cullen 16). Consequently, the food sector can be contained to ensure consistent production and consumption.
The coronavirus pandemic risks not only the lives of people but also the economy and food sectors. Governments have a critical role to play through policy formulation. The policies by Norway are solid examples of how governments can shield the economy. Additionally, the recommended food security measure can help preserve the food supply chain for nations. Thus, governments must create favorable policies to prevent drastic effects on their citizens.
“Coronavirus Cases.” Worldometer, 2020. www.worldometers.info/coronavirus/
Cullen, Maximo Torero. “Coronavirus Food Supply Chain Under Strain, what to do?” Food and Agriculture Organization of the United Nations, 2020. www.fao.org/3/ca8308en/ca8308en.pdf.
“The Government Act to Mitigate Effects of the Covid19 Pandemic on the Economy.” Norway Government, 2020. www.regjeringen.no/en/aktuelt/the-government-acts-to-mitigate-effects-of-the-covid-19-pandemic-on-the-economy/id2693471/.