University of Westminster

Question 1.

The biggest global shock of 2020 is the Covid-19, involving coincidental disruptions to both supply and demand in the integrated world economy. On the supply side, the contagious infection has led to a reduction in the labor supply and productivity; moreover, lockdowns, business suspension, and social distancing also cause a cut in the supply chain. On the demand side, layoffs and the loss of or insufficient income owing to morbidity, quarantines, and unemployment as well as worsened economic conditions reduce individual and household consumption. Although there has been an increase in the demand in specific sectors like food stores at the beginning of the pandemic, demand for their services has evaporated from other sectors, such as aviation and tourism. The number of health-related jobs, such as Nurses and Medical Equipment Preparers are employed in industries undergoing highly increased demand.

Amid the country's lockdown, the COVID-19 outbreak dealt a huge blow to China's service sector. The service sector suffered a temporary but severe downturn with large parts of the economy shut down and hundreds of millions of people staying at home while China curbed the spread of the virus. The lockdown led to a significant rise in online grocery transactions, with food product sales increasing 26.4% year-on-year in January and February (Chipman Koty, 2020).

The boom in online grocery stores has put a strain on cold chain supply management, as operators are struggling to handle the supply and distribution of fresh and perishable products. In the light of this challenge, e-commerce operators are turning to artificial intelligence (AI) to develop efficient delivery strategies as well as to work with local glass grocery stores to ensure that items are new and readily accessible. In an attempt to improve demand, in April of this year, the Chinese government announced plans to set up 46 new cross-border pilot e-commerce zones. It was expected to nearly double the number of the country's 59 pilot zones. Cross-border e-commerce pilot zones are special jurisdictions intended to promote international trade through e-commerce networks and offer preferential policies, such as VAT exemptions and excise duties, as well as reduced corporate income tax rates.

A danger to Uzbekistan's ambitious economic and social transformation stems from the COVID-19 crisis. Promising signs of development in the private sector and employment formation in tourism, horticulture, and services are now at high risk. These industries may be among the worst hit by the crisis wiping out the major tourist and high-value horticulture export seasons, and by domestic closures halting industrial production and trade. The President of Uzbekistan has signed a US$ 1 billion economic relief plan to support the economy and needy population groups. COVID-19 prevention and its controlling programs, social assistance for low-income households, support for strategic economic areas, and small enterprises will be funded by the Anti-crisis Fund.

First of all, Uzbekistan has taken necessary steps to avoid a fall in the population's income, to maintain jobs in pursuit of preventing redundancy or layoffs, and to prevent unemployment. Also, employers are forbidden from ending employment contracts with workers infected with coronavirus or quarantined viruses, as well as with parents of children under the age of 14.

Secondly, several humanitarian help was given to support employment in the informal sector and create additional job vacancies. At the beginning of 2020, after the quarantine was announced, 426,700 people returned from abroad, while 143,400 people did not have the opportunity to go abroad for proceeding work.

In economic sectors’ phased usage, industry rehabilitation and increased exports of finished goods have become a key priority during the latest coronavirus pandemic. Travel agents and hotel services, Uzbekistan Airways JSC, Airways State Unitary Enterprise have been exempted from property and land taxes, and the rate of social tax was reduced to one percent.