Are low income or african countries prepared for the

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Are low-income or African countries prepared for the health impacts? Airlines are cutting flights to China but not all of them (e.g. Ethiopian Airlines). A Center for Global Development blog suggests that none of the African countries are prepared to respond to such outbreaks (Glassman, 2020). Low-income countries may be worse prepared to address the health impacts because of (i) poor health and nutrition at the outset and poor quality of health care; (ii) resource constraints; (iii) low influenza vaccination rates; and (iv) vulnerable supply chains. 7.2 Measures to contain economic impacts in China and other countries Short-term economic measures to stabilise markets include fiscal, monetary and financial measures. For example, China is planning a liquidity boost of some $173 billion. China has also reduced its one and two week repo rates by 10 basis points. Some countries fear losing access to Chinese markets. For example, Cambodia and Ethiopia have both announced that they will keep flights going. This strategy carries a risk in terms of health impacts at this stage compared with for the countries that have banned flights. It may, on the other hand, avoid the worst of the economic slowdown (e.g. through impacts on tourism). The Cambodian prime minister has said that cancelling flights to and from China is out of the question as it will ‘kill the hospitality and service industry in Cambodia’ (Ng, 2020) . Other countries need to monitor the impacts. As China has begun to play a major role in their economies (through, for example, the Belt and Road initiative), shocks will also be felt harder now compared with previous shocks. There could also be temporary winners in economic terms. China will produce less this quarter. Those countries to take its place may gain temporarily. Wuhan/China plays a major role in some of the largest supply chains, such as that of electronics. Global attention has begun to focus on impacts. In a statement, the World Bank Group has stated that it is ‘monitoring the wider economic and social impacts of this crisis. We support China’s efforts to respond including its efforts to maintain resilience in its economy. We recognize that it is the poorest countries and most vulnerable populations that are often hardest hit by global disruptions like these’ (World Bank, 2020).
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16 8 CONCLUSIONS AND SUGGESTIONS This paper has examined the economic vulnerability of countries to the recent outbreak of Coronavirus. We argue that, while the SARS virus in 2003 had a limited effect on global growth of around 0.1%, or $50 100 billion, Coronavirus is different in spread (faster), mortality rates (lower) and measures taken (more and faster). It is too early to tell the impact, but it seems prudent to expect a larger economic of at least around $360 billion this time.
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