Covid-19 Pandemic; Recession, Virtual Revolution Leading to De-globalization?

  • 1 Clark University BC, , Jagiellonian University, , Massachussets

Abstract

Objective: The article is an attempt to make a diagnosis about the impact of the Covid-19 pandemic on global trends, including organizational processes in enterprises, and challenges for organization leaders in many areas. Issues such as recession phase in which the economy will find itself, de-globalization and the increase in virtualization of both the economy and entire societies are discussed in the article.

Methodology: The research method is a review of the literature, not very extensive, on the subject. There is a lack of research on social and cultural consequences of Covid-19 pandemics, and at the same time we are experiencing a flood of media information. The author is aware that impact assessment is subject to uncertainty and that it must be multidimensional.

Findings: The review of the literature, as well as reports from financial institutions, show that the economies of individual countries are entering a phase of stagnation and recession. This will probably lead to a global recession. The text indicates the sectors and types of enterprises that will be most affected by the changes. The article proves that governments’ attitude to health care functions may change, as well as the role of states and international financial institutions. Virtualization of communication seems to be an important change. It is difficult to answer the question whether a pandemic will affect globalization or de-globalization, government decisions at national level are significant, but they draw from international experience.

Value Added: The article becomes an important voice on the impact of a pandemic on the functioning of the economy and globalization.

Recommendations: A question was posed demanding further analyses: whether strengthening the central government would mean de-globalization tendencies. It seems that the virtualization of social and economic life will continue after the pandemic expires, which needs to be confirmed. The impact of the pandemic on the world should be the subject of many research studies in the future.

If the inline PDF is not rendering correctly, you can download the PDF file here.

  • Albulescu, C. (2020a).Coronavirus and financial volatility: 40 days of fasting and fear. Published Mar 9. arXiv preprint arXiv:2003.04005.

  • Albulescu, C. (2020b).Coronavirus and oil price crash: A note. Published Mar 13. arXiv preprint. arXiv:2003.06184.

  • Ayittey, F. K., Ayittey, M. K., Chiwero, N. B., Kamasah, J. S., & Dzuvor, C. (2020). Economic impacts of Wuhan 2019-nCoV on China and the world. Journal of Medical Virology. doi: 10.1002/jmv.25706.

  • Balsa-Barreiro, J., Vié, A., Morales, A. J., & Cebrián, M. (2020). Deglobalization in a hyper-connected world. Palgrave Communications, 6(1), 1–4.

  • Bonaparte, Y. (2020).Pricing the Economic Risk of Coronavirus: A Delay in Consumption or a Recession?. Published Mar 5. Available at SSRN: https://ssrn.com/abstract=3549597 or http://dx.doi.org/10.2139/ssrn.3549597.

  • Brightman, C., Treussard, J., & Ko, A. (2020). Oh My! What’s This Stuff Really Worth?. Advisors Perspectives. https://www.advisorperspectives.com/commentaries/2020/03/05/oh-my-whats-this-stuff-really-worth, 10.03.2020.

  • Fetzer, T., Hensel, L., Hermle, J., & Roth, C. (2020).Perceptions of Coronavirus Mortality and Contagiousness Weaken Economic Sentiment. Published Mar 8. arXiv preprint arXiv:2003.03848.

  • Fornaro, L., & Wolf, M. (2020).Covid-19 Coronavirus and Macroeconomic Policy: Some Analytical Notes. http://www.crei.cat/wp-content/uploads/2016/07/CMP.pdf, 10.03.2020.

  • He, L. Y., Lin, X., & Zhang, Z. (2020). The impact of de-globalization on China’s economic transformation: Evidence from manufacturing export. Journal of Policy Modeling. Published online Feb 5. https://doi.org/10.1016/j.jpolmod.2020.02.001.

  • Khan, N., & Fahad, S. (2020).Critical Review of the Present Situation of Corona Virus in China. Published Feb 23. Available at SSRN: https://ssrn.com/abstract=3543177.

  • Kickbusch, I., & Leung, G. (2020). Response to the emerging novel coronavirus outbreak. BMJ, 368. https://www.bmj.com/content/368/bmj.m406.short, 10.03.2020.

  • Kozlov, N., & Sokolova, N. (2020). Deglobalization: The Impact of the External Environment on Russian Economic Development. Norwegian Journal of Development of the International Science, 38-2.

  • Leiva-Leon, D., Pérez-Quirós, G., & Rots, E. (2020).Real-Time Weakness of the Global Economy: A First Assessment of the Coronavirus Crisis. London: Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=14484.

  • Leonardi, P. (2020). You’re Going Digital-Now What?. MIT Sloan Management Review, 61(2), 28–35.

  • Liu, Y., Gayle, A. A., Wilder-Smith, A., & Rocklöv, J. (2020). The reproductive number of COVID-19 is higher compared to SARS coronavirus. Journal of Travel Medicine. published online Feb 13. DOI:10.1093/jtm/taaa021.

  • Phelan, A. L., Katz, R., & Gostin, L. O. (2020). The novel coronavirus originating in Wuhan, China: challenges for global health governance. Jama, 323(8), 709–710.

  • Ragheb, M. (2020). Risk quantification. Nature, 2, 26.

  • Ramelli, S., & Wagner, A. F. (2020). Feverish Stock Price Reactions to the Novel Coronavirus. Available at SSRN 3550274, https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3550274, 10.03.2020.

  • Sapovadia, V. K. (2020).Terrestrial and Celestial Forces Expose Vulnerable Economists: Financial Crisis 2008 vs. 2020. Available at SSRN 3547745, https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3547745, 10.03.2020.

  • Tian, F., Zheng, Q., & Chao, K. (2020), Current and future of technologies and services in smart e-learning. SOCA, 14, 1–3. https://doi.org/10.1007/s11761-020-00288-9.

OPEN ACCESS

Journal + Issues

Search