Covid-19: Socio-Economic Implications and Effect of Government Policy Initiatives on Developing Economies

Abstract

This research investigates the socio-economic implications and effect of government policy initiative of coronavirus on developing economies from a neoliberalist theoretical perspective using a pragmatist approach and mixed method research. Quantitative and qualitative data have been employed to evaluate the effect of the virus on developing economies. The findings of this research reveal the following: that the coronavirus caused significant mortality and morbidity in developing countries and its rapid spread of across countries, and across borders led to a global economic recession. Several drastic government measures were taken to curb the spread of the virus through restriction of individual freedom and movement. These measures include social distancing, and isolation; closures of educational institutions, religious institutions, and businesses, prohibition of public events, and restriction of domestic and foreign travel. Furthermore, the prolonged lockdown measures taken by developing countries to contain the spread of the virus worsened their economic crises. It is expected that the pandemic will reduce economic growth, worsen government debt, increase inflation and worsen current account deficits. The long-term effect of the pandemic in developing countries is the worsening of inequality and poverty and wiping off the economic development strides gained in the last two decades.