Effects of Global Pandemic especially in the least developed Countries by Dr.T.Umapathy, S/o C.Thulsidass, Assistant Professor Department of Economics D.G.Vaishnav College Arumbakkam - Chennai - 600 106

 

Effects of Global Pandemic especially in the least developed Countries

by

Dr.T.Umapathy, S/o C.Thulsidass,

Assistant Professor

Department of Economics

D.G.Vaishnav College

Arumbakkam - Chennai - 600 106

 

Introduction:

Countries are classified as developed, developing, least developed countries based on Per Capita Income, Human Asset Index & Economic Environment and vulnerability Index especially the least developed countries are facing structural hindrance to sustainable development and highly vulnerable to economic and environmental issues with less human capital, especially in the LDCs

Bleak Economic progress of LDCs:

Least developing countries are striving hard to withstand among developing and developed countries to maintain their status. Pandemic forced the bureaucratic to impose sudden restriction on trade which is unexpected and made the least developed countries suffer. The Least Developed Countries are slightly losing their economic stability between 2019 & 2020. It pulls back the Economic growth of the Least Developed Countries from 5percent to -0.4 percent negatively. Economics worried about the per capita income in the Least Developed Countries will drop down to 2.6 percent during 2020 & 91% of the Least Developed Countries are experiencing a fall in average income level. The Least Developed Countries groups are facing this Bleak Economic Outcome rarely in three decades of Economic functionaries.

This unforeseen recession will augment job seekers and block credit access to Micro Small and Medium Enterprises (MSME) to a greater extent. The Least Developed Countries are good at exporting fuel, minerals and metals, garments, and tourism services.

Food stocks are slowly depleting from buffer leads the LDCs to suffer a lot to manage and assure food security. The economic progress of LDCs is always a question if the problem is unsolved. It may turn poverty into dreadful poverty across the globe; the impact on LDCs is unfortunate.

The combined aggregate merchandise trade deficit will positively surpass in 2020 compared to 2019 ($91 billion). The Global Economic downfall due to pandemic harms poverty and food security.

Capital flow is another primary factor that paves the way to speed up the growth engine of LDCs. Financial need. It is indispensable for LDCs to overcome this hardship in reality; data proves that the private sector capital inflow is weak to support LDCs.  Even donor countries are not aware of their long-standing commitment is one of the main reason for ignoring.

Conclusion:

Under this circumstance, any government must take stern steps to overcome any Economic barriers by new resilience policies which will protect their citizen through livelihood support. The main reason for reiterating LDCs is to attain sustainable development to prove the strength through commitment & Economic Progress.