Capitalism is the process where the economy is controlled by the private sector and not the state. Coronavirus Phobia is a crucial debate today, and it is a harsh variable that is damaging economies. COVID-19 impacts different fields directly or indirectly and we have to be prepared for similar scenarios to expect more stress during a recession and slow economic growth. Coronavirus spots the spread of hostility against infected persons in different societies and how social interaction is drawn to the tendency of more isolation to them. Some countries quarantine in government hospitals, and some others don't.
Human beings tend to satisfy isolation through indirect ways like involvement in social media to express their existence. They can also be derived to participate in online shopping and increase the demands of online buying instead of traditional shopping as long as they are quarantined and have no physical access (Fuchs, 2020). This shopping can hold a growth opportunity for local online selling companies in all consumption sectors, including delivery and transportation. But they have to deal with the strict changing rules applied by a given government to secure people as the health concerns are getting more rigorous.
One of the developed countries in Latin America has a tourism-based economy with a reputable import basket from China, starting from T-shirts, and mobile accessories to cars, and construction materials.
The tourism sector is impacted by the slow growth and the spread of Corona according to a report issued by the central bank of Costa Rica called Commentary on the national economy February 2020, which points to majors cancellations of reservations and flights to the country in response to coronavirus's fears. This cancellation causes a low flow of hard currency to the economy, Corona spread forced Costa Rica like many other countries in the world to analyze alternative destinations to replace China, the problem is that such a shift cost more. One optimal solution Costa Rica can do is to take advantage of the rapidly changing situation where many tourists are searching for a safe destination rather than those epidemic ones. Costa Rica is still at low Corona confirmed cases, and it can be the right choice for tourists to visit if the government could guarantee public health protection for locals and visitors.
One of the systems that are controlled by the government is the banking system. Coronavirus has led to the adoption of cashless businesses, which leaves the citizens at the mercy of the service providers who, in most developing countries, are the private sector. This adoption is one of the most beneficiary sectors of the crisis where most of the business has already been linked to bank payments, as will be illustrated in the following study case of Czech. Due to fears of the coronavirus spread, people tend to convert local currency to other currencies. The conversion happens through demonetized options, which means more dependence on banking services.
According to official data, the country is expected to face economic difficulties due to Corona, which directly caused a significant drop in currency value because investors tend to abandon the Czech Koruna in favor of foreign currencies and online banking.
The slow domestic growth expected by the Czech central bank for 2020 is influenced by the impact of the imports after VAT free cancelation. This cancelation adds more pressure on the economy to struggle with the coronavirus factor, which is already impacting the flow of raw materials and goods, and the trade movements to or from the country.
The Czech government is trying to control the situation and secure people by taking precautionary procedures like extended delay time flights from Asian destination as Prague or Hanoi. For example, the Ministry of health has banned the exports of disinfectants from being added to other substances ban lists being activated after the Corona debate.
In conclusion, the virus will lead to the rise of self-independent individuals and the growth of the private sector. This trend is hazardous to any nation, and when not considered, it will be more dangerous to any government than the advantage it can bring to the economy.
Fuchs, C. (2020). Everyday Life and Everyday Communication in Coronavirus Capitalism. triple: Communication, Capitalism & Critique. Open Access Journal for a Global Sustainable Information Society, 18(1), 375-399.
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