Covid-19, a Mongolian experience /2/
Since 27th of January, the epidemic spreads in disguise. Many experts, and common people suddenly became alive on TV, media and everywhere. It was like full of vague ideas and advices as if it is compelling answer to this mysterious case. Every member of this new crews contemplate that this virus is a big deal, so that isolating society is must to save as many lives as possible.
Mongolian economy is dependent on exports of our mineral resources. We export to China, so that our Central Bank holds our value of currency MNT as stable as possible versus USD. Government decided to lockdown mineral export for a month. It all happened in the blink of an eye. Companies cannot estimate whether it was a month or so at that moment. As a result, tiny little economy based on resource export declined and shrank from the day one. Small and medium enterprises faced a huge blow of managing its payables. There was a social committee that states `Postpone the RENT` and people start not to pay the loan interest and payments.
Government stands not to amend the state budget as if they had Plan B earlier than spread of COVID-19. 2020, according to our constitution, it is an election year. In other words, budget was approved in a quiet big deficit, due to politicians who really want to put investment in their local districts as a duty of promise. It is obvious that any politician pledged to develop its country, so that we can`t also blame those power-holders in the parliament.
Although, government was very good at keeping the quarantine, at the same pace, economy was getting declined day by day. NGOs started to speak on behalf of those who are suffering economically from this environment. The whole world was, I believe, could not reply properly because COVID-19 spread and risk duration is totally based on vague consensus.
Last week /on 1st of April precisely/ government of Mongolia held a discussion on a draft parliamentary resolution and accompanying bills on a package of measure to stimulate the economy at last. The package contains 14 measures in four areas, all to protect the employment and support those business entities to carry on their activities. I was watching TV News as it was lively broadcasting; The first thought was… This is Fool`s Day… Is that really true?
It is almost impossible to live without paying taxes and social securities in the capitalist system. All I read from BBC, The Economist, Time, Bloomberg Business Week was just about huge lending from the state towards entities during this hard time. However, our government is quite different than those developed ones. They will not charge you, but somehow, they would try to attract some last-minute investment from overseas and plus BoM via internal bond or debenture. The amount is aroung 2 billion USD which is almost 20% of our GDP. The decision takes effect from April 1, 2020 until October 1, 2020.
Globally, the vast increase in state power has taken place since the World War II. Even, a symbol of peace, the Olympic games was postponed to 2021. 1980, exactly 40 years ago, due to cold and harsh race between Capitalism and Communism it has been like that. Also, 80 years ago, because of Hitler, the outbreak of disastrous war, the game was not organized. With all these instances, COVID-19 is much bigger challenge that all politicians have thought before, now they are acknowledging. This new world order is now on the way.
Staying at home, social distancing is not an easy task. You must wear masks everywhere you go, above all wash your hands. One of my friend, husband of an owner, who is in charge of small pharmacy is saying that, ‘There is no sales, mate. People are not sick nowadays. I think they wear mask so that any infectious disease now cannot spread as used to be.’; The owner of event management company, also of one of my ex-colleague mentioned that the revenue is zero, now need to think about their possibility of organizing online events in order to carry their work on. It seems like world is shut down. I would not imagine in any of my dream that this sort of lockdown is really possible at this developed era. Certainly, COVID-19 would alter permanently the way we handle business, travel, and cooperate with each other. It is not going to be like before in the future.
Although, human race is technologically developed and made some great things, now it is the time to accept the fact for any virus and its developed version could easily damage the globalisation, due to our new ways of life.
/to be continued/