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How Coronavirus Affected the supply chain Networks/ Businesses

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The public health Emergency as novel  COVID-19 has  caused the product flow to be changed around the global and it caused the disruption of the supply chain network to a great extent .As world is the global village and interconnected with one another for different  purposes . The most important manifestation of globalization is the Economic integration. The Corona virus outbreak caused the disruptions to every aspect of life but considerably to the Economy of every country and the global supply chains. The economy wheel is the fluctuation of the economy between periods of expansion (growth) and contraction (recession). When we think about the disruption or disturbance of the supply chain network by COVID-19 , It will be impacted in the four ways  first of all ”  problem in  Production of new products ” e.g.  Demand for sanitizers and toilet papers have tremendously risen these days but racks are empty in the stores due to the production constraints. due to this epidemic the whole supply chain network disturbs because there is limited production in the organizations due to many reasons  the foremost is the limited access to  workforce  or the employees due to quarantines as the  virus is continuous to spread  around the world so government advised to stay at home so it reduces the overall normal productions of the factories and the leaders also need to think about how they can protect the health of their employees and also help their workers who are ill . 

Due to the pandemic most of the companies have started work from home but it is not that effective. there are different drawbacks related to that too . second one is the” cost of the products” due to this pandemic  organizations have to bear the additional costs of shipping for the products to stay in the market as complete lockdown for the businesses is not easy and it will ultimately  be horrifying for the economy as well .Third is the ” products that have already being manufactured and present in the market and in these days people are stocking down (the essential items) but there is the limited supply at the backend due to factory lockdowns and this could lead to the loss of market shares for different companies as the customers are looking for the substitutes as well, due to the shortage of products in the market due to this pandemic outbreak.

Fourth is the ” customer satisfaction’’ in this period of higher uncertainty people are looking in order to fulfill their needs they are not considering their wants their first priority for this they are looking for the substitutes of the products no matter if they have a brand loyalty for certain brand or products. All this has changed due to the shortage of the products and rising uncertainty in the market. The spreads of COVID-19 has pushed the pause button on the world’s economy let’s talk about the world’s power Economic houses. China has the world’s largest economy behind US one of the main reason of its rising economy is the massive  network of different factories in china includes from T shirts to mobile phones to all consumer goods for the consumers all over the World .Today china  makes up of 1/3 of world manufacturing and is the world’s largest exporter . As world is the global village and supply chain is interconnected so deeply across the world. So if the issues appear in the china’s economy it can felt across the world. As the COVID-19 pandemic outbreak was first identified in Wuhan china in December 2019, As of 28 March 2020 more than 650,000 cases of COVID-19 have been reported in over 190 countries resulting in approximately 30200 deaths. And due to the vigorous spread of virus globally it has impacted every country directly or indirectly. In an effort to stop the spread of the virus the Wuhan China epicenter of the virus was completely sealed off and in China mandatory factories shutdown in most of its provinces in order to halt the spread of corona virus.

All the Businesses across the globe are badly affected by the COVID-19 outbreak e.g. The Hyundai Motors in South Korea had stopped their production in early February due to not getting its parts that they usually import from China. Chinese Car sales dropped drastically by 86% in last month and other companies like Tesla and Geely are start selling cars online as consumers stay away from showrooms. On the other hand most of the components of iPhone are manufactured in china so it relies heavily on China for its production. China suggest Apple’s corona virus problem may be worsen in future. As there is the steep decline in the iphone sales in February that is 61% and according to analyst it will be worse in future. As the corona virus impacted every business so the Investors in US stock market suffers their worse week in February after the Global finance crises since 2008. Investors fear the spread of the virus will destroy the economic growth of countries. . Central Banks in many countries including the United Kingdome has slashed down the Interest rates. Due to the corona virus outbreak European automotive crises deepens, as plants have been closed temporary and demand likely to fall up to 20% this year.

Travel Industry has been badly impacted by the outbreak of corona virus .In order to halt the further spread of this virus as Airlines cutting down their flights and tourists cancelling business trips and holidays and the Government around the world have imposed the travel restrictions in order to stop the spread of virus as a controlling measure. In order to slow down  the spread of virus as it is affecting the globe drastically Government of almost every country has  close down the restaurants , bars ,  and social places  closure of the Restaurants cause the Knock -on  effect on the related industries  such as food production , dairy products , fish farming  food and beverages , wine and beer production  the issues were especially troublesome in industrialized where enormous extents of whole categories of food  are normally imported typically by  just-in-time logistics. In addition to all this as the virus has spread globally the oil market is continue to suffer losses but the uncertainty is still there to answer the questions, how deep? and how long? Corona-virus impacts the oil market  because of  the Travel restrictions imposed by the Government which limits the use of  jet  fuel and  due to the slowdown of supply chain network   , lockdowns, less mobility , shutting down of factories this has the very direct affect on the oil consumption. and In late January projections the oil consumption would decline by approximately by 600 __800,000 barrels per day (bpd) over Quarter 1 and by 200,000 (bpd) over the entire year eclipsed by  International energy Agency’s (IEA). Gold is traditionally considered as the safe haven for the investors throughout the world.

When crises hits, Investors often choose less risky Investments, but even the price of Gold tumble -down briefly In March as investors were fearful about global recession. These are some high profile cases. Now, there are certain suggestions for the businesses in order to cope with the prevailing uncertainty. There are certain lessons that the companies can learn from the current situation. There have to be some mitigation strategies as well. Companies can work more proactively and agile by good planning. They can overcome the risk by making improvements in the recognition of risk profiles .By implementing the risk management strategies and many more. After the Covid-19 global emergency, we will see organizations can be categorized as one of two classifications. There will be those that don’t do anything, trusting such a disturbance won’t ever happen again. These organizations will be facing exceptionally hazardous challenges in future. Furthermore, there will be firms that notice the exercises of this emergency and make interests in mapping their supply chain Network. The businesses organize themselves so they don’t need to operate blind when the following emergency strikes again in future and they would be capable enough to rapidly make sense of arrangements .These organizations will be the victors in the long run.

Zaianb Arshad is a MS scholar “Business and management” Comsats University, Lahore Campus Pakistan. Contact: Zarshad996[at]gmail.com

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Economy

World Order Is Old Order: New World Order Is No Order

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The grand hallucinations: When there is any order, it always becomes visible as an orderly progression, when it is supposed to be a secret or an invisible order, then it is grand hallucinations for a cult of illusionists. Observe how the World Order is an old order, and notice how the new world order is no order. The random engagements in illusionary cultish acts of chaos sold as order. Fakery sold and resold as victory, illusions pushed as hallucinations of success. Courage is needed to see the big magical acts of grand hallucinations.

The feel of afternoon-high: Across the world, free economies are already bent, twisted or broken, while procedures, policies and laws, everything on sale for the right price. Mighty-money, delivered crisply stacked, shrink-wrapped as freshly printed solutions, to buy more chaos, spread misery and create the economic hallucinations and stage the smoke and mirrors, all without any totals, balances or columns. Sold to feel a real afternoon-high.

The interchange: When integrity gone, fakery dominates, when real value-creation gone value-manipulation regulates, when vision gone illusions thrives, when national economics gone hallucinations declared as great success and reality interchanges to fakery.  

The elasticity left: Needed across the free economies of the world, no further proof required, a total change, no further verification needed, as political power no longer economical power, no further help needed, as most nations in need of basic diaper change. Visible damage to skills and competency, inability to understand and articulate the real problems with grassroots solutions is now a big tragedy of our times. Nations already stretched via rubber band economy, some with elasticity left before going bust.

The truth: Which nation has the capacity to face the truth? Which nation can fix itself not just top reshuffle, but rather from top to bottom to the real core? Which nation can uplift its citizenry to stand up to global age skills and cope with global speed and competitiveness? Which nation is capable of understanding and has the right to mobilize its hidden national entrepreneurialism and provide a future for the next generation?

No electricity and missing bulbs: Is there any value left in the most cherished Machiavellian style political power without ever creating any economic power? Is there any remaining value in economic power play of today without entrepreneurial growth models? What good are economies when stuck in waste paper baskets still without digitization like a nation being without electricity? What real economic value is created when odd mindsets playing with economic development procedures like creating light but with no bulb?  

Welcome to cold facts and warm realties.

The branded nations: Why each and every single nation of our planet is now branded every single day of the year? Like it or not, agree with what is said, disagree with what gossiped, simple fact of the day,  each nation is branded, between each sunrise and sunset. Here is some advanced level insight for the national leaderships on global corporate communication challenges, as what may be altering their efforts on global affairs, what might mold their global trades as the deep undercurrents of global ‘likes’ and ‘dislikes’ from the global populace shape their national global image and rate of popularly and any level of respect on world stage.

The global opinion: Observe how fast the world changed, how the ocean of “global opinion” is now drowning ponds of “national opinion”. Notice, nations already intoxicated, in joy over the popularity of their own national opinion, while having just an opposite global opinion on the world stage. What does this mean to a nation’s image supremacy, how does this translate into economic impacts? Why is any global opinion of any kind important anyway? Be cautious, if such important topics are not discussed in your boardrooms, check out the restrooms.

The fabric of humankind. Every huge, little, deadly, serious or funny incident of any kind, becomes ‘alive’ in global social media, where despite all controls its is processed with common sense with common emotions, commented and circulated around the world, many times, registered, measured, analyzed, criticized and humanized as good, bad or ugly in the minds of the global populace.  No one can stop it. Facing truth is now a new global challenge of moral strength, something that increasingly demands insight and awareness. Shunning, arguing or defending and fighting has little or no power, as the real power hidden is in critical thinking to solve common good, humankind issues.   

The 200 nations, now under their own global digital spell, responding, and adjusting their own feedback and updating reality checks, influenced by the five billion, connected populace driving the world opinion.  The voices are no longer the big old-media, as they have already lost their credibility and power,  but across the world the new known and unknown big and small clusters of people sharing their thoughts amongst their local and global connectivity and surroundings. The truth rises, because this is how the critical needs for common good and social justice advances. The fabric of humankind stretches, starts to cover all nations.

Weaponization of Ideologicalism:  Why are most nations increasingly unable to control their restless citizenry? How much more will the citizens of these nations, continuously influenced by the global opinion, facing common sense, chasing truth, turning internal tribalism, into cultural wars defining limits of ideologies, as Weaponization of Ideologicalism slowly ripping local social fabric and crushing economies. Where are the repairmen, where are the solutions, which leadership is ready to articulate and bring national mobilization of entrepreneurialism as an untapped national treasure. Which nation is ready to face reality and show their advanced skills?

The aimless directives: When nations appear aimlessly drifting into hallucinations, the lack of vision, absence of social justice, unable to control internal tribalism, cultural wars move to ideological wars. Nations fragmented and splintered, now facing street by street mental wars. The visible lack of skills at the top management, lack of speed of execution at middle level and the absence of any motivation at remaining workforces now seriously limits all new options.

The coming revolution: The next global revolution, driven by economic chaos based on social failures, while the middle classes already disappeared, may not be about the mobs of commoners with broom-sticks but most likely the imploding calm and silent systemic collapse of bureaucratic administrative blockades and fall of economic intellectualism for destroying the fabric of humankind.

The absence of dialogue, only proves lack of real pragmatic solutions, skills and competence. Electioneering, sloganeering and fakery of wars to remain in power with no real economic solution, in global opinion a colossal failure.  Therefore, “Self Mastery” urgently needed to differentiate between a mesmerized mind with an enlightened one will possibly be a way to face the new challenges. Economies will only improve when old methodologies declared broken

The new world order: No other time in the history of civilization, so many globally connected will hold responsible the so few in power for destroying the remains of world order and bringing the world to a nuclear war.  A war, suggested to eliminate five billion people. It is possible, the coming revolutions to be less about anarchy but more about establishing real meritocracy. The need to search, find and strive for real value creation to answers grassroots prosperity affairs and eliminate lingering bureaucracies with fermented layers of incompetency. How soon will the five billion connected reach a critical point to select the right players with right policies and declare common good the new ultimate goals? This may eventually lead to a new world order. Pandemic was just a sneeze, economy, now like a hole in the empty pocket, leadership like a circus show, while billions looking up. Acquire mastery. Get ready for major global shifts of major economic behaviorism. The rest is easy. 

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Economy

Mosul’s recovery moves towards a circular economy

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Five years since the end of the ISIL(so-called Islamic State in Iraq and the Levant) conflict in 2017, the International Organization for Migration (IOM) in Iraq and the UN Environment Programme (UNEP), with funding from the Government of Japan, has established a debris recycling centre in Mosul. After its initial use, the centre has now been handed over to Mosul Municipality for its continued, sustainable operation.

“On behalf of the Iraqi Government, the Ministry of Environment expresses its gratitude to the Government of Japan for generously supporting this important project and to UNEP and IOM for enabling the sustainable management of the huge quantities of conflict debris and restabilization of the liberated areas in an environmentally sustainable manner,” said Iraq’s Minister for Environment, Dr. Jasim Abdulazeez Humadi.

The handover of the Mosul debris recycling centre marks a significant step in the sustainable management of the huge volumes of debris — an estimated 55 million tonnes — created by the ISIL conflict. It also opens the way for the recycling of routine construction and demolition waste, contributing to ‘building back better’ and an increased circularity in Iraq’s development.

UNEP West Asia Regional Director, Sami Dimassi, emphasized that “by reducing waste, stimulating innovation and creating employment, debris recycling also creates an important business opportunity.” Indeed, construction companies in Mosul have expressed interest in purchasing the recycled aggregate, thereby underscoring the longer-term sustainability of debris recycling.

“This project supports recovery and livelihoods by drawing on principles of a circular economy, wherein waste and land pollution is limited through production processes that reuse and repurpose materials for as long as possible,” explained IOM Iraq Chief of Mission, Giorgi Gigauri. “Collaboration and sustainability are key priorities in IOM’s work toward durable solutions to displacement, and we are pleased to have partnered with UNEP and the Government of Japan so that this is represented not only in the function of the plant itself, but also in its functioning, by supporting local authorities to be prepared to effectively operate the plant moving forward.”

On 28 July 2022, Mosul Municipality hosted an event to officially hand over the debris recycling centre, attended by senior government officials and academia, as well as representatives from IOM, UNEP and the United Nations Assistance Mission for Iraq (UNAMI).

Masamoto Kenichi, Charge d’Affaires, Embassy of Japan to Iraq stated: “We are glad to know that the project funded by the government and people of Japan has contributed to cleanup of debris and reconstruction of Mosul. We would like to commend UNEP, IOM and the city of Mosul for their tremendous efforts of turning the legacy of ISIL’s devastation into building blocks of reconstruction”.

Through the rubble recycling project, nearly 25,000 tonnes of debris have been recovered and sorted, of which around half was crushed into recycled aggregate. Material testing of the recycled aggregate endorsed by the National Center for Structural Tests of the Ministry of Planning confirms its compliance with the Iraqi State Commission for Roads and Bridges design standards for road foundational layers and its suitability for several low strength end-use applications such as concrete blocks and kerbstones.

The project created 240 much-needed jobs through cash-for-work schemes targeting vulnerable persons, including 40 women.

Building on this experience, IOM has set up two other debris recycling operations in Sinjar and Hamdaniya in Ninewa Governorate, and a third in Hawija in Kirkuk Governorate, where a pilot phase using a mobile crusher was implemented in al-Buwaiter Village in 2021. In addition, two other conflict-affected governorates — namely Salah al-Din and Anbar — have  also shown a high-level of interest in replicating and scaling up debris recycling in their own regions. 

UNEP has been supporting Iraq in cleaning up the huge volumes of debris created by the ISIL conflict since June 2017. Initially, this included carrying out technical assessments and planning workshops with UN-Habitat, and subsequently designing and implementing debris recycling pilot projects to support returns in Mosul, Kirkuk and other conflict-affected areas in cooperation with IOM.

UNEP

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Economy

Digital Futures: Driving Systemic Change for Women

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Authors: Erin Watson-Lynn and Tengfei Wang*

As digital technology continues to unlock new financial opportunities for people across Asia and the Pacific, it is critical that women are central to strategies aimed at harnessing the digital financial future. Women are generally poorer than men – their work is less formal, they receive lower pay, and their money is less likely to be banked. Even when controlling for class, rural residency, age, income, and education level, women are overrepresented among the world’s poorest people in developing countries. Successfully harnessing digital technology can play a key role in creating new opportunities for women to utilise formal financial products and services in ways that empower them. 

Accelerating women’s access to the formal economy through digital innovations in finance increases their opportunity to generate an income and builds resilience to economic shocks. The recently issued ESCAP guidebook titled, Harnessing Digital Technology for Financial Inclusion in the Asia Pacific, highlights the fact that mechanisms to bring women into the digital economy are different from those for other groups, and that tailored policy responses are important for women to fully realise their potential in the Asia-Pacific region.

Overwhelmingly, the evidence tells us that how women utilise their finances can have a beneficial impact on the broader community. When women have bank accounts, they are more likely to save money, buy healthier foods for their family, and invest in education. For women who receive Government-to-Person (G2P) payments, there is significant improvement in their lives across a range of social and economic outcomes. Access to safe, secure, and affordable digital financial services thus has the potential to significantly improve the lives of women.

Despite the enormous opportunity, there are numerous constraints which affect women’s access to financial services. This includes the gender gap in mobile phone ownership across Asia and the Pacific, lower levels of education (including lower levels of basic numeracy and literacy), and lower levels of financial literacy. This complex web of constraints means that country and provincial level diagnostics are required and demands agile and flexible policy responses that meet the unique needs of women across the region.

Already, across Asia and the Pacific, governments are implementing innovative policy solutions to capture the opportunities that come with digital finance, while trying to manage the constraints women often face. The policy guidebook provides a framework to examine the role of governments as market facilitators, market participants and market regulators. Through this framework, specific policy innovations drawn from examples across the region are identified which other governments can adapt and implement in their local markets.  

A good example of how strategies can be implemented at either the central government or local government levels can be found in Pakistan. While central government leadership is important, embedding tailored interventions into locally appropriate strategies plays a crucial role for implementation and effectiveness. The localisation of broader strategies needs to include women in their development and ongoing evaluation. In the Khyber Pakhtunkhwa province, 50,000 beneficiary committees comprising local women at the district level regularly provide feedback into the government’s G2P payment system. The feedback from these committees led to a biometric system linked to the national ID card that has enabled the government to identify women who weren’t receiving their payments, or if payments were fraudulently obtained by others.

In Cambodia and the Philippines, governments have implemented new and innovative solutions to support remittance payments through public-private-partnerships and policies that enable access to non-traditional banks. In Cambodia, Wing Money has specialised programs for women, who are overwhelmingly the beneficiaries of remittance payments. Creating an enabling environment for a business such as Wing Money to develop and thrive with these low-cost solutions is an example of a positive market intervention. In the Philippines, adjusting banking policies to enable access to non-traditional banking enables women, especially those with micro-enterprises in rural areas, to access digital products.

While facilitating participation in the market can yield benefits for women, so can regulating in a way that drives systemic change. For example, in Lao People’s Democratic Republic and India, different mechanisms for targets are used to improve access to digital financial products. In Lao People’s Democratic Republic, the central government through its national strategy, introduced a target of a 9 per cent increase in women’s access to financial services by 2025. In India, their targets are set within the bureaucracy to incentivise policy makers to implement the Digital India strategy and promotions and job security are rewarded based on performance.

These examples of innovative policy solutions are only foundational. The options for governments and policy makers at the nexus of market facilitation, participation and regulation demands creativity and agility. Underpinning this is the need for a baseline of country and regional level diagnostics to capture the diverse needs of women – those who are set to benefit the most of from harnessing the future of digital financial inclusion.

*Tengfei Wang, Economic Affairs Officer

This article is the second of a two-part series based on the findings of the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) Policy Guidebook: Harnessing Digital Technology for Financial Inclusion in Asia and the Pacific, and is jointly prepared by ESCAP and the Griffith Asia Institute.source: UNESCAP

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