Open AccessEconomic Transition, Creating Opportunities and Establishing Resilience of Post-Covid Era in the Latin America and the Caribbean
Author(s) -
Félix Julca Guerrero,
Edwin Ramírez-Asís,
Wendy Allauca-Castillo,
Hugo Maldonado-Leyva,
Guillermo Peláez-Díaz,
C. Fernández-López
Publication year - 2022
Publication title -
webology
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.259
H-Index - 18
ISSN - 1735-188X
DOI - 10.14704/web/v19i1/web19221
Subject(s) - poverty , informal sector , workforce , unemployment , social protection , development economics , vulnerability (computing) , economic growth , latin americans , economic policy , business , gross domestic product , tourism , economic sector , economics , political science , economy , computer security , computer science , law
Latin America and the Caribbean has started adopting the various policy measure to develop the economic status of the region. The Covid-19 situation has impacted significantly on various sectors and structures of the region such as poverty, unemployment, economic and social inequalities among the people. The LAC region is navigating the various challenging atmosphere during the Covid-19 era, which has been affected directly in the contraction of gross domestic product of the region. Because of the lockdown procedures has impacted significantly on all economic activities, reduced the global demand especially the trade, and affected the entire tourism sector. Subsequently, the Covid-19 lockdown measures hit the poor people who lives under the poverty and those working in the low-paid wages workers in the informal sector. The informal sector workers are already not receiving any kind of social security measures. It is also noticed that 38 percent of the total workforce in the informal sector are not having any form of social security and affected a lot during the lockdown. According to OECD, this pandemic crisis made the micro, medium and small industries in vulnerable situation of the LAC region countries. It affected 2.7 million companies in LAC and influenced for the loss of 8.5 million jobs. Many of the LAC policy makers and the government responded in a very effective manner to protect and safe-guard the people from extreme poverty and vulnerability. Various monetary and fiscal policy measures have been taken and the crisis and revive the economy. The immediate action is taken on important segment such as supporting the poor household by creation of new jobs, generating employment through industries and firms. The necessary economic policy formulation supported the transition of the economy from the crisis to prosperity.