The Current Crisis: Roadmap to Overcome

MT 416_Business Communication II_Assignment

MBA/10039/19
Birla Institute of Technology, Mesra, Ranchi
MT 416_Assignment The Current Crisis: Roadmap to Overcome MBA/10039/19

The Current Crisis: Roadmap to Overcome

By-
MBA/10039/19
“We Are All A Little Broken but The Last Time, I Checked, Broken Crayons Still Color the Same”

The current crisis that the world is facing can be broadly classified as a mix of two situation
which has evolved over time. The first one being the economic crisis through which India was
already fighting which was tipped on by the second condition which is COVID 19 crisis through
which world is sailing now.
The combination of these two factors has brought not only India but the whole world on the
brink of collapse economically, politically and morally. Let us first focus on the economic crisis
that was already going on.
The Economic Crisis 2019
The economic crisis primarily kicked of because of the Trade War that was going on between
China and United States of America which took global economies by storm, as a result we saw
the Turkish Economy to collapse and the money losing its value. As India became a much more
open market, the effects could also be felt on Indian Stocks where market started to be Bearish
rather than Bullish. The other factors that contributed to the ongoing crisis was:
 Disruptions and Jolts from Reforms like demonetization, rollout of GST and the
IL&FS crisis. Demonetization gave serious blow to the domestic consumption and
vicious cycle of job losses which further effected demand and consumption which can be
categorized as multiplier effect. The rollout of GST has effect on export growths in the
implementing year and the IL&FS crisis took NBFCs for a task.
 Tight Monitory and Fiscal Policies. Monitory policy was focused upon inflation control
which made interest rates hard and fiscal policy ensuing to reduce the fiscal deficit closed
the hands of government on spending.
 Global Headwinds like USA-China Trade War and crude oil prices fluctuations and the
Brexit.
 Financial Sector as piling NPAs ratio which gave pressure on NBFCs leading to
liquidity crisis.
 The lack of cash available at disposal.
The Current Crisis: What is COVID 19?
The definition says, Coronavirus disease 2019 (COVID-19) is an infectious disease caused
by severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2). The disease was first
identified in December 2019 in Wuhan, the capital of China's Hubei province, and has since
spread globally, resulting in the ongoing  2019–20 coronavirus
pandemic. Common symptoms include fever, cough, and shortness of breath. Other symptoms
may include muscle pain, diarrhea, sore throat, loss of smell, and abdominal pain. While the

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MT 416_Assignment The Current Crisis: Roadmap to Overcome MBA/10039/19

majority of cases result in mild symptoms, some progress to viral pneumonia and multi-organ

failure. As of 5 April 2020, more than 1.23 million cases of have been reported in more than two
hundred countries and territories, resulting in more than 67,200 deaths. More than 252,000
people have recovered.
After much deliberation, the World Health Organisation has declared COVID-19 to be a
pandemic, a public health emergency across the globe. The cure is yet to be found, but the
numbers of cases are increasing exponentially. However, all the countries are taking precautions
to deal with the deadly virus which has suddenly interrupted our lives.
The virus is thought to be natural and have an animal origin, through spillover infection. The
origin is unknown but by December 2019 the spread of infection was almost entirely driven by
human-to-human transmission. The earliest reported infection has been unofficially reported to
have occurred on 17 November 2019 in Wuhan, China. A study of the first 41 cases of
confirmed COVID-19, published in January 2020 in The Lancet, revealed the earliest date of
onset of symptoms as 1 December 2019. Official publications from the WHO reported the
earliest onset of symptoms as 8 December 2019.
Economies Challenged: The Global Impact of COVID 19
As the global pandemic deepens and the human cost of Covid-19 rises, the novel coronavirus
outbreak is sending shocks through the world economy. The IMF expects global economic
growth to be just 3% this year, the lowest since the 2008 global financial crisis. Unlike in 2008,
when India was insulated from a global economic meltdown, the economy now is on the ebb,
with growth in the first quarter of 2019-20 hitting a six-year low of 5% and growth projections
being slashed by agencies for the rest of FY20.
The sizable economic effects of the pandemic are becoming apparent. Data from China indicates
the virus resulted in a 20% GDP decline in the first two months of 2020; other countries forced
to implement aggressive social distancing will likely experience similar effects. In the US, nearly
3.3 million workers filed for unemployment benefits in the week ending on March 21, breaking a
decade-long streak of job growth and shattering previous records.
The global economy now faces two threats. If governments around the world fail to slow the
virus’s progression or relax social-distancing measures too aggressively, the human toll and
economic effects will be significant. Furthermore, the pandemic is jeopardizing the stability of
the financial system. Falling oil prices, due to both the pandemic and the price war between
Russia and Saudi Arabia, have placed further stress on the economy, especially the high-yield
corporate debt market.
The Federal Reserve, The European Central Bank, Reserve Bank of India have launched an
unprecedented effort to prevent a liquidity crisis that could jeopardize the entire global financial
system, but fiscal stimulus measures are almost certainly needed to stabilize the macroeconomy.
Legislators across the developed world have promised to deliver economic relief, and many have
already done so. France, India, Germany have announced large stimulus packages.
Basically, COVID 19 is turning world into topsy-turvy.

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MT 416_Assignment The Current Crisis: Roadmap to Overcome MBA/10039/19

Roadmap to Overcome

“We shall overcome, we shall overcome, we shall overcome someday; Oh, deep in my heart, I do
believe, we shall overcome someday”

Increasingly stringent containment measures, needed to slow the spread of the Coronavirus
(Covid-19), will necessarily lead to significant short-term declines in GDP for many major
economies. In all economies, the majority of this impact comes from the hit to output in retail
and wholesale trade, and in professional and real estate services. There are notable cross-country
differences in some sectors, with closures of transport manufacturing relatively important in
some countries, while the decline in tourist and leisure activities is relatively important in others.
With these the following actions are necessary.
 Recapitalize health and epidemiological systems. The super powers have now realized
that by manufacturing missiles is not enough. Surprisingly companies responsible for
defense procurement have started making ventilators. This crisis has shown a void in
world’s healthcare system.
 Mobilize all macro-economic levers: monetary, fiscal, and structural policies. The focus
now has to shift to the counter measure to restrict this virus from spreading. In that
direction lot of money is required and hence the policies also have it shift accordingly.
 Lift existing trade restrictions especially on much needed medical supplies. These are the
times which calls for international cooperation forgetting all strains on relations.
 Provide support to vulnerable developing and low-income countries so that they can help
themselves and world to fight against this disease.
 Share and implement best practices to support workers and all individuals, employed and
unemployed – particularly the most vulnerable.
 Keep businesses afloat, particularly small and medium-sized firms, with special support
packages in hardest hit sectors such as tourism.
 Hygiene. The key to the solution is to maintain hygiene.
 Lock Down. Maintaining social distancing creates a huge change in transmissions of the
virus.
 Setting up testing, quarantine and isolation camps and healthcare system. Feeding people
and setting up assistance camps.
 Maintaining positivity and keeping up motivation to fight the outbreak. Positivity can
help everyone and unites to fight the disease.
Humanity Outshines
A very famous quote by J.K Rowling says – “Happiness can be found in the darkest of time only
if one remembers to switch on the light “. The residents of Jalandhar , Punjab woke up to an
unprecedented view – The Snow – capped Himalayan range , which was seen after 30 long years
, The people of Delhi finally got to breathe in satisfactory air quality and according to the
reports of National crime records bureau life of 3700 people is being saved every day that die

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MT 416_Assignment The Current Crisis: Roadmap to Overcome MBA/10039/19

due to road accidents , all thanks to this 21-days lockdown .Apart from these positives this
quarantine period has made us realize what we were missing in our lives .The chirping of birds ,
the rustling of leaves , the sound of water dropping , the soulful voice of azaan in evening , the
wind blowing through our hair , These are very small things but the happiness and satisfaction
derived from these are immense.
Now when everyone has just one thing to do that is pass time , 24*7 with phones is not
practically possible and this has paved way for games like Carrom , chopad , stapuuu and other
outdoor games to come into existence which got lost in this technology driven world .The fun of
playing Tambola with the entire family , the pride of defeating your grandpa in carrom , the
fighting with cousins for getting chance in blackfold , the throwing of ball at the 7stones , The
regret of not getting 6 on your dice , has made us go back in those times when there was no
phones , no internet and yet people were living happily and satisfactorily.
The COVID 19 financial aid and the initiative of PMCares truly inspires people that this is the
time where everyone forgot CAA, NRC, Communalism and stood together as one to make the
humanity survive.

Conclusion
However, there are various concerns across the world including economic concerns, at a time
when the markets were not so well the virus have brought a deadly effect not only physically but
also economically. However, there is a need for Global solidarity at this point, and all one can do
is stay in isolation with social solidarity, and maintain basic hygiene like washing one’s hands at
regular interval in order to avoid getting affected by COVID-19. Standing together, we shall pass
through such times of crisis.

Bibliography:
 https://economictimes.indiatimes.com/news/economy/finance/five-reasons-why-the-
economy-is-slowing-down/articleshow/70493541.cms?from=mdr
 https://en.wikipedia.org/wiki/Coronavirus_disease_2019
 https://www.bain.com/insights/tracking-the-global-impact-of-the-coronavirus-outbreak-
snap-chart/

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