Will it be business as usual as and when the global pandemic triggered by novel Coronavirus subsides? As micro-biologist across the globe work against time to find a vaccine to the deadly pathogen; people are beginning to calculate both the biological as well as economic loss brought about by the pandemic.
Phillip Braun, Clinical Professor of Finance at the Kellogg School of Management, North Western University, avers two changes which this crisis may wrought about in the business community. In an interview to Sumit Pande, he says, the manufacturing sector will re-examine their supply chains and service sector will have to devise ways to deal with any future pandemics. Here are the excerpts of the interview.
What do you think would be the overall financial implications of the current crisis on a developing economy like India?
For all economies around the world, the crisis will have a very large negative impact on financial markets and overall economies. Because developing countries’ economies and financial markets are more volatile than those of developed economics normally, the economic impact for developing economies will be greater than that for developed economies.
Do you think after the current crisis is over, it would be business as usual for the world? Will this change how the world would do business in the coming years- both in the manufacturing and service sectors. And how.?
Difficult question to answer. I do not think it will be business as usual. I think after these crisis manufacturing companies (and countries) will re-examine their supply chains and the service sectors will need to examine how to make themselves more immune to impacts like this virus.
Do you think that the nations across the globe will have to re-calibrate their strategy vis a vis spending on health care?
Yes, health experts have been warning for years, the potential for a pandemic like we are experiencing now, but not much was done. After this crisis all countries are going to spend more on healthcare to prepare for the next pandemic.
How do you think this crisis affects the poor and the deprived and what should be done to mitigate their problems?
Around the world, the poor and deprived will suffer the most. They will not be able to get the appropriate healthcare during this crisis, and those who live on the streets will not be able to even practice self-distancing.
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