Back to basics after pandemic?

measures, as their national debts are already considerable, and during this time of emergency their budget deficits are bursting at their erstwhile more manageable seams. All these during a period of almost all- time low oil prices, which have been a crucial contributing component to the coffers of some of these governments. So, further public spending measures would likely incur tapping into their reserves, such as foreign exchange reserves, which ironically could perhaps be of service domestically during this low period for international trade, when further depreciation of a country’s domestic currency due to lower foreign- exchange reserves is at least temporarily somewhat “affordable.” But it is not advisable for the cash thus drawn out from reserves to be cobbled together for further, higher “general” stimulus measures, as explained above. At the very least, the legislatures of various countries would have to pass supplementary budgets and exercise due diligence in scrutinizing the governments concerned as the latter vow to further undertake stimulus measures on the pretext of the novel coronavirus pandemic and the ensuing lockdowns.

Two macroeconomic points are important to keep in mind here, in the context of at least some developing countries. First, many such countries are endowed with large geographic extents, fertile landscape, abundant resources and medium- sized populations which, if optimally organized and distributed, should not incur massive economic failures that could precipitate famines or other socioeconomic unrest. My home country, Malaysia, is one such example. And I often wonder, if the many thousands ( as I learned from geography lessons) uninhabited islands in the Philippines and Indonesia, with due respect to the understandable need for environmental and wildlife conservation, could be “smartly,” responsibly and sustainably inhabited. Second, coercive measures by governments to prohibit or strongly discourage businesses big and small from firing or lowering the compensation of employees during a crisis such as now will at most function only temporarily, as the businesses thus encumbered would eventually ( or soon) be forced to close shop. And another more salient but perhaps not so “economic” point to note is that, at the end of the day, as is the case now, it is not so much the more worldly, ostentatious wealth that matters, but simple, sustaining goods and services, such as clean water and air, healthy and nutritious food, as well as decent sanitation, that will enable us to continue living.

Keeping the above in mind, the governments and the people concerned need to take a stern and critical review of their existing economic model, which for many developing, middleincome countries is supposed to thrive on a combination of resource extraction and massive industrialization, lubricated by tacitly encouraged speculation and consumption. The prolonged worldwide economic doldrums with low demand, not least the current acute downturn in the commodity cycle, exacerbated by the novel coronavirus pandemic, have amply demonstrated the shortcomings of such an economic model acting essentially alone in a typical national economy.

So, the governments, after an extensive review and consultations with the relevant stakeholders, should attempt to supplement and broaden the aforementioned national economic model, such that small- and micro- sized businesses could play more significant roles in the overall national economy, at least to the extent that most people can be self- sufficient in their livelihood. This would involve, for example, a more conducive environment with less red tape for entrepreneurships and startups, revitalization of land development projects with emphasis on modern subsistence farming, “back to village” programs to encourage urban folk and economic migrants to engage in niche farming in more rural areas, such that people who lose jobs or are looking for work would not have to wait for jobs and work to be created for them, but could instead engender their own gainful work and perhaps create a few ( but not necessarily a lot) jobs for others with similar interests.

New government stimulus measures should tailor to these subsistence and sustenance needs, such as more targeted tax cuts, incentives and loans. Policies in land use and labor must also be reformed to suit these new, more flexible needs. Critical infrastructures such as telecom and information technology, transport and logistics must be further improved by the government and major industry players to truly enable electronic commerce and work from home. Only then can people subsist more sustainably for the foreseeable future. To talk about stimulating the economy to some previously skyscraper level is an empty luxury all of us the world over can ill- afford.