The coronavirus pandemic has highlighted the capitalist dysfunction showing that considering profit over people can be deadly. The study reveals the economies were more responsive toward the impact of the disease outbreaks.
Mr Sethurathnam Ravi (S Ravi) is the former Chairman of Bombay Stock Exchange Limited (BSE) confirms that the impact of the pandemic has caused on the financial market is certainly inevitable. As banks generalize to the certification request for reorganization, which is very common in the SME / MME sector, the effects of the epidemic can be easily visualized.
He believes the areas most affected by the pandemic are aviation, hospitality, construction companies and malls. In his opinion, the last companies to deal with the epidemic were the fintech companies.
Pandemics cause a short-term fiscal impact and a long-term economic impact on the nations around the world. Efforts to curb the pandemic include imposing quarantine, preparing health facilities, isolating infectious cases, and tracing contacts involving public health resources, human resources and implementation costs. It also involves health system expenditures to provide health facilities to infectious cases and the arrangement of consumables such as antibiotics, medical supplies, and personal protective equipment.
According to former BSE chairman S Ravi, Pandemics can also result in declined tax revenues and increased expenditure, which causes fiscal stress, especially in lower-middle-income countries (LMICs) where fiscal constraints are higher, and tax systems still need improvement. This economic impact severity was observed during the Ebola virus in Liberia due to the rise in public health expenditure, economic downfall, and revenue decline due to the government's inability to raise revenue because of quarantine and curfews. Economic shocks are common during pandemics due to shortage of labour because of illness, rise in mortality, and fear-induced behaviour. Other than labour shortages, disruption of transportation, closed down of workplaces, restricted trade and travel, and closed land borders are reasons for the pandemic's economic slowdown.
The pandemic has led companies and businesses to incorporate work from home in their daily life. In terms of companies, there are a vast number of such companies that have effectively compromised on their establishment costs where the office space was greatly compromised besides the introduction of the secure data protocols. The former BSE chairman said that it was approached in a mixed manner with the main objective of continuing the activities of companies and businesses and was started with strict consideration of the Covid protocols.
The former BSE Chairman has also expressed his views on the introduction of crypto to the world where he stated that the cryptocurrency has opened the positive gates of the future but given that there has been an active absence of regulations, it is somewhat labelled as risky.
Adding to that, S Ravi also established his point by keeping forward the point that when it comes to the crypto market, regulations play a vital role so that the mini-investors are offered maximum protection and there is no conduction of misspelling. He further went on to contradict that framing the regulations regularly is not what the current world can afford to do at the moment.
Thus, former BSE chairman S Ravi has kept his views on issues related to the pandemic and the new world of crypto and its future for future generations.
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