The Investor Sentiment - Equity and investments forum for Sri Lankans
The Investor Sentiment - Equity and investments forum for Sri Lankans
Would you like to react to this message? Create an account in a few clicks or log in to continue.
Please send an email to contact.lankaninvestor@gmail.com if you face any technical difficulties when posting
Search
Display results as :
Advanced Search
Latest topics
HVA FoodsFri Dec 04, 2020 10:25 amThe Invisible
ACL CablesWed Dec 02, 2020 10:14 amThe Invisible
Tokyo CementMon Nov 23, 2020 9:42 amRajapaksap
Insider Dealings Fri Nov 20, 2020 2:30 ampjrngroup
UML United MotorsTue Nov 10, 2020 8:50 amThe Invisible
ExpolankaMon Nov 09, 2020 8:46 pmsmallville
Plantation Sector UpdatesSat Nov 07, 2020 8:15 amRajapaksap
HAYC - HaycarbFri Nov 06, 2020 12:11 pmsubash
LWL.N0000 (Lanka Walltiles PLC)Fri Oct 16, 2020 12:50 amsubash
CSE Daylight Robbery !Mon Sep 21, 2020 9:54 pmYin-Yang
Trading Journal Tue Sep 15, 2020 10:37 pmThe Invisible
AEL Access EngineeringTue Sep 15, 2020 7:24 pmsmallville
Disclaimer


Information posted in this forum are entirely of the respective members' personal views. The views posted on this open online forum of contributors do not constitute a recommendation buy or sell. The site nor the connected parties will be responsible for the posts posted on the forum and will take best possible action to remove any unlawful or inappropriate posts.
All rights to articles of value authored by members posted on the forum belong to the respective authors. Re-using without the consent of the authors is prohibited. Due credit with links to original source should be given when quoting content from the forum.
This is an educational portal and not one that gives recommendations. Please obtain investment advises from a Registered Investment Advisor through a stock broker

Go down
Backstage
Backstage
Top contributor
Top contributor
Posts : 3775
Join date : 2014-02-24

People first, economy next, says top economist Empty People first, economy next, says top economist

on Fri Mar 20, 2020 9:59 am

People first, economy next, says top economist
Fighting COVID-19

20 March 2020 04:17 am -
Nishan De Mel

Economist Nishan De Mel says goal should be to reduce overall harm; hence methods used to reduce COVID-19 spread do matter
Stopping economic production and services declaring holidays is too blunt a method for reducing people movement
Level of lock-down can be decided based on the mathematics of a sustainable spread



By Shabiya Ali Ahlam
As Sri Lanka is witnessing its economy coming to an almost stagnant state due to the unavoidable measures taken by the government to contain the coronavirus (COVID-19) outbreak, a leading economist in the country stressed the priorities of the political leadership should be ensuring the best for the people over all other things.


The government was quick to take precautionary measures which included closing of schools Island wide and declaring public holidays, which were requested to be extended to the private sector.


However, a social media wave was seen this week calling for a total lock-down, which comes with its own set of challenges to the economy.


“In such instances the focus of economic thinking should not be on overall GDP, lost revenue or lost trade, but on the impact that both the virus and the lock-downs will have on people’s lives.


The basic objective of good economic policies is to improve the quality of life, and to do that in a sustainable manner; GDP, trade, and revenue are only means to an end. We must not confuse them as being the end objective,” Verite Research Executive Director Dr. Nishan De Mel told Mirror Business.


The senior economist said, therefore focusing directly on the goal of improving material outcomes can provide more clarity for economic decision making, especially in the short term.

According to de Mel, there are two kinds of human vulnerabilities the relevant authorities should be concerned about, in the present context.


The first is the elderly who are most at risk, in terms of serious negative outcomes from COVID-19, and the second vulnerability the country should be concerned about is that of the poor who depend on daily income for their sustenance.


While special measures can be considered for protecting and supporting the elderly, pausing economic activity to protect the spread of COVID-19 can have quite serious negative consequences on the lives of poor daily wage earners, de Mel stressed.


“The methods for protecting the spread of COVID-19 should be sensitive to the negative impacts of those methods on the lives of the most vulnerable. The goal should be to reduce overall harm, therefore the methods selected to reduce the spread of COVID-19 do matter,” the economist cautioned.


Starting Monday (16), the government declared an all island holiday, which was extended till yesterday. The move led to a halt of operations in the business community, including the stock market, which delivered a blow to daily wage earners and those who are self-employed.


De Mel opined that stopping economic production and services declaring “holidays” is too blunt a method for reducing people movement, when the focus is on reducing overall harm.


According to him, a more targeted and less damaging method of reducing the spread of COVID-19 could be adopted through arrangements such as ‘work from home’ and for such must be supported by the government regulations and policy.


De Mel noted that epidemiologically, it would seem that the best strategy for any country was to work on slowing down the rate at which the virus will spread as it would ensure the number of people who are ill with the virus at any given time, and need medical care to get well, does not exceed the capacity of the health system.
“Therefore, the level of lock-down can be decided based on the mathematics of a sustainable spread,” he added.


Back to top
Permissions in this forum:
You cannot reply to topics in this forum