Ascent Digital Model United Nations 2020

World Health Organization

Background Guide

Agenda: Discussing the progress of government strategies and formulating follow-up

actions/ plans to reduce the spread of Coronavirus (COVID-19) worldwide.

Executive Board:

Chairperson: Sanat Puri

Vice-Chairperson: Sriansh Rath

Director: Priyavardhan Mishra

Note: The present document intends to make you aware of the background of the agenda
put forward for the discussion. It does not imply the expression of any opinion whosoever
on the part of the Secretariat of AD
Letter from the Executive Board
Dear Delegates,
We welcome you to this simulation of the World Health Organization at Ascent Digital Model
United Nations 2020. From the off, it is our hope that you have begun your initial and most basic
research into the agenda and related topics. On the outset, we must be aware of the Mandate of the
Committee and understand that though general debate can happen on this agenda, the resolutions
made during council cannot pertain to matters beyond the ambit of our mandate.
We hope that the following study guide can provide an insight into the nature and functionality
of the committee. However, we must also warn you that this guide is merely an assistive
document, and should by no means encompass the entire scope of your research into the agenda.
We, the members of the Executive Board, do indeed expect the debate in committee to follow a
certain direction that shall be made clear by this guide, however, we would highly appreciate
delegates to find different viewpoints and angles to the issues put forward by the agenda. Your
Executive Board is here to guide debate, and will be taking part in substantive debate only
through the updates and questions to you. We will refrain from giving our opinion on matters
unless we are ruling on Points of Orders. Regarding Rules of Procedure, we would ask you to be
conversant in them but not regard them as strict and unbreakable. Rules of Procedure were made
to aid debate, not hamper it, so we would like to keep the Points of Orders for usage of personal
pronouns to a minimum. Further, we would love for the delegates to converse amongst
themselves and promptly let the Executive Board know if they wish for any rules to be amended
to improve debate.
We urge you to use this background guide only as a starting point for your research. At no point
are you supposed to rely completely on it. Only when you research beyond the guide can we
ensure healthy debate. What this Executive Board expects is that you to express an analysis of
the information you have, not to just read out that information. This will be a fast paced
committee, and despite the tremendous pressure, it will be a refreshing experience from the usual
pace of debate in MUNs. Never be afraid to suggest something out of the box, because it is
going to be discussed by your peers if you can lobby. We expect the delegates to perform well
by striking the right balance between Substantive and Procedural knowledge.
Lastly, we would request all the delegates to put sincere efforts in preparation and research for
the simulation and work hard to make it a fruitful learning experience for all. Feel free to
contact us if you have any queries or doubt.

Regards
Executive Board
World Health Organization
Ascent Digital MUN 2020
Worldwide havoc due to outbreak of COVID-
19
The World Health Organization (WHO) has declared a pandemic over a new coronavirus which
causes an illness known as COVID-19 that has spread to nearly every country. The disease has
killed more than 190,000 people and infected more than 2.6 million, nearly 750,000 people have
recovered. 
Each and every country is affected by this pandemic and is under quarantine and the world is still
desperate to find the cure of the disease. Since 2 January 2020, the three levels of WHO (China
country office, Regional Office for the Western Pacific and headquarters) have been working
together to respond to this outbreak of COVID-19.

 Outbreak in People’s Republic of China: The birth nation of this virus was in the city
Wuhan, which oversaw death and devastation in the beginning of the year 2020. The total
cases recorded are 82,804 with the death toll stands at 4632, yet the recovery rate
provides a ray of sunshine with 77,257. The current active situation represents the
number as 915 as currently infected patients out of which 858(94%) are in mild condition
and 57(6%) are in critical condition. China encountered the highest death rate on
February 10-15th with the numbers crossing 50,000+ cases. 

The Chinese government started to take stern measures as it said in a report released on
28th February from a mission organized by the World Health Organization (WHO),
where the Chinese government allowed 13 foreigners to join 12 Chinese scientists on a
tour of five cities in China to study the state of the COVID-19 epidemic and the
effectiveness of the country’s response. 
The team began in Beijing and then split into two groups that travelled to Shenzhen,
Guangzhou, Chengdu, and the hardest hit city, Wuhan. They visited hospitals,
laboratories, companies, wet markets selling live animals, train stations, and local
government offices. The group also reviewed the massive data set that Chinese scientists
have compiled. (The country still accounts for more than 90% of the global total of the
90,000 confirmed cases.) They learned that about 80% of infected people had mild to
moderate disease, 13.8% had severe symptoms, and 6.1% had life-threatening episodes of
respiratory failure, septic shock, or organ failure. The case fatality rate was highest for
people over age 80 (21.9%), and people who had heart disease, diabetes, or hypertension.
Fever and dry cough were the most common symptoms. Surprisingly, only 4.8% of
infected people had runny noses. Children made up a mere 2.4% of the cases, and almost
none was severely ill. For the mild and moderate cases, it took 2 weeks on average to
recover.
 Chinese authorities also built two dedicated hospitals in Wuhan in just over 1 week.
Health care workers from all over China were sent to the outbreak’s centre. The
government launched an unprecedented effort to trace contacts of confirmed cases. In
Wuhan alone, more than 1800 teams of five or more people traced tens of thousands of
contacts. Aggressive “social distancing” measures implemented in the entire country
included cancelling sporting events and shuttering theatres. Schools extended breaks that
 began in mid-January for the Lunar New Year. Many businesses closed shop. Anyone
who went outdoors had to wear a mask.
On April 8, Wuhan began allowing people to leave for the first time since the central
Chinese city was sealed off 76 days ago to contain the coronavirus that first emerged
there late last year. The cities across the nation are following orders to “fully restore”
production and resume normal life.  Although there are various questions for which the
world seeks answers, like has China really beaten coronavirus? 

 Devastation in Italian Republic: After the wide spread of the disease, Italy was one of
the first nations whose name started to come up in media about facing the nuisance of the
pandemic. The total cases reported are 192,984 with death toll of 25,969. Out of the total
active cases 104,354(98%) are in mild condition and 2173(2%) are in serious condition.
60,498(70%) are recorded to be recovered and the hospitals have discharged those
patients, yet are still under observation and the country is still in quarantine. 

Italy confirmed a third death on February 23rd, while local authorities brought the Venice
Carnival to an early close and suspended sport events. Thus the pandemic had entered the
European continent. Taking stern measures Italy imposed a strict quarantine in the state
of Lombardy and 14 other areas in the north, affecting a total of 16 million people on
March 5th
On March 21st, as Europe remained the epicentre of the pandemic, with Italy reporting
4,825 fatalities amid 53,578 cases, the European Union took the unprecedented step to
suspend rules on public deficits, giving countries free rein to inject spending into the
economy as needed. The worst-affected areas are in the industrial north of the country -
Lombardy, the region around Milan, and Veneto near Venice. Nevertheless, most doctors
believe that Italy's actual toll is substantially higher because most care home deaths are
not counted and the number of people who died outside hospitals is unknown. 
Government officials have sought to reassure the public, and insisted steps were being
taken to prevent the spread of the disease. Schools, universities and cinemas have been
closed and several public events cancelled. 
Eleven towns at the centre of the outbreak - home to a total of 55,000 people - have been
quarantined. Prime Minister Giuseppe Conte has promised to outline his plan for the next
stage in Italy's battle against the virus. Italy's national lockdown is the longest one
currently in force anywhere in the world. 
 The government has sent in the army to enforce the lockdown in Lombardy, the northern
region at the centre of the outbreak, where bodies have piled up in churches. Thus, Italy
was crippled with the spread of the disease till the end of the March and was eagerly
taking up measures to overcome the situation, with the full country staying in a major
lockdown and hospitals running at full thrusters.
On April 20, Italy reported its lowest number of deaths in a week, while the country
recorded its first drop in the number of people currently suffering from the novel
coronavirus since it recorded its first infection in February. The country is not yet free
from the disease and still under major lockdown but with the graph which was taking a
curve has now changed to a linear scale have given hope to the Italian government.
 Havoc started in the Kingdom of Spain: The outbreak continued to spread in the
European continent with the next country as its prey was the Kingdom of Spain. The total
cases confirmed are 223,759 with a death toll of 22,902. Currently active cases are
105,149 out of which 97,444(93%) are in mild condition and 7705(7%) are in serious
condition. The recovered 95,708 comprises of total 81% of the total active cases found. 

Spain recorded 838 new coronavirus deaths on March 29th, marking the country's highest
daily jump in fatalities. Thus the Kingdom of Spain started to provide a breeding ground
for the virus to grow in the European Continent. In Spain, one of the hardest-hit countries
in the pandemic, the coronavirus spread quickly and widely without being detected,
especially among the elderly. While they stressed it was too early to carry out a detailed
analysis, the experts pointed to the country’s sociable lifestyle and close ties between
young and older family members as significant factors in the virus’s spread. 
“The problem here is the size of the epidemic, the great quantity of infections which we
had at the epidemic peak,” said Fernando Rodriguez, a public health professor at
Madrid’s Autonomous University. One of the major factors leading to spread of the virus
is the low Mortality rate and late detection of the virus in Spain. Unusually warm weather
helped the growth of the virus.
 Lifestyle could also have played a role in a country where people spend a lot of time
outside in groups eating out, having drinks, attending religious processions, protesting or
just going for a walk. In addition, Spain has the most people living in flats of any
European Union country, according to EU statistics agency Eurostat. 
Also close contact with senior citizens acted as a factor which led to the growth of the
virus. While Spaniards have a long average lifespan and the country has a high number of
seniors who are more vulnerable to the virus. It is common for several generations to live
under the same roof in Spain. Also Families frequently visit relatives who live in nursing
homes, which became tragic focal points of the pandemic in Spain.
The next major factor leading to the widespread of the disease are the strained healthcare
system. Spain’s public healthcare system is ranked in the top 10 in the world by the
World Health Organization (WHO), but it has suffered deep spending cuts since the
global financial crisis more than a decade ago. While it has a strong primary care
network, hospitals have fewer beds than the European average, which forced them to
improvise during the pandemic. 
These factors made the wide spread that it reached the royal blood of the Kingdom of
Spain, causing the death of Princess Maria Teresa being the first royal death due to
COVID-19.
Yet on April 24th, Spain reported 367 new coronavirus-related deaths, the lowest daily
toll in over a month. A total of 22,524 people have died from COVID-19 in Spain, amid
219,764 cases. At last there is some ray of hope for the Spaniards, but still the
government has imposed aggressive lockdown in the country as Spain becomes the
country with the most affected country of Europe.

 Widespread in Islamic Republic of Iran: After China, Iran being the next Asian
country to witness the widespread of the disease. The total cases confirmed are 89,328
with a death toll of 5620. The currently infected patients are 15,485 out of which
12,389(80%) are in mild condition, whereas 3096(20%) are in critical condition which is
 a great matter of concern for the authorities in Iran. Total number of 68,193 patients are
found to have recovered, thus Iran still has high hopes in eradicating the disease.

On February 19th, Iran reported two deaths from the coronavirus thus the matter for
concern started early in the year 2020 for Iran. 
Then a shocking news appeared to the world , on February 25th,when Iran's Deputy
Health Minister Iraj Harirchi, who, a day earlier, had given a press briefing on the
outbreak, confirmed he had coronavirus. The country's official total reached 95 cases
with 15 deaths. Seeing the massive widespread of the disease government officials
decided on March 9th, 70,000 prisoners had been released because of the coronavirus
outbreak in the country, without specifying if or when those freed would need to return to
jail. 
On April 3rd Iran became the worst-hit country in the Middle East, and reported a total
death toll of 3,603 amid 58,226 cases. However, President Hassan Rouhani said that
"low-risk" economic activities would resume from April 11th.
 The widespread was massive because Iran's government 'didn't botch the response. As
the virus spreads in Iran, the government has been criticised for its response to the crisis,
particularly how it handled the situation in Qom, now the country's worst-hit city where
the outbreak began. It has also been accused of playing down the number of cases. But
Iranian political analyst Mohammad Marandi claims the Iranian government acted to
fight the virus as soon as the first case was discovered. 
The government are still taking various strict actions like President Rouhani ordered
shopping centres and bazaars across the country to shut for the 15-day holiday. The only
exceptions are for pharmacies and grocery stores. The authorities have also closed key
religious sites, among them the highly-revered shrines of Hazrat Masoumeh and Imam
Reza in the cities of Qom and Mashhad. 
The government came under severe criticism when it had earlier chosen not to close the
shrine in Qom, the holy city at the centre of the outbreak, visited by millions of Shia
Muslim pilgrims every year. The World Health Organization (WHO) has sent Iran
diagnostic kits, protective equipment and medicine in a number of shipments since the
first Covid-19 case was reported there in February. 
The increasing graph of the cases took a decreasing curve on April 11th in Iran. The
hospitals are getting cases with major recovery and Iran is still trying hard to get back on
its feet and start with its normal life. But the country is still under a major quarantine as it
is not yet completely free from the disease.
 

 
 
 Desolation in the Republic of India:  The most populated country in the world also was
affected with the pandemic. The total cases confirmed are 26,496 with a death toll of
825(12%). Total recovered patients comprises of 5,939 which are discharged from the
hospital yet are still under major quarantine as ordered by the government officials. 

The lockdown was announced by Mr. Narendra Modi, Prime Minister of India, on 24th
March. Three days before the official announcement of the lockdown Rajendra Bhatt, the
district collector of Bhilwara in Rajasthan was gearing up for a precarious situation. On
March 21st, he issued the first directions in the district closing down all industries,
factories, brick kilns and other establishments in which more than 10 workers were
employed. The Rajasthan government had directed all district collectors on March 19 to
impose Section 144 of the criminal procedure code(CrPc) in their respective districts after
a couple who had returned from Italy were found infected with coronavirus in Jaipur.
That was when the first case was reported in Bhilwara as well. Industrial lockdown of
textile hub was one of the first moves while medical interventions were being made to get
people off the streets. With many large industries involved in textile manufacturing, the
order to shut down industries quite literally put the lid on all industrial activity and
employment in Bhilwara. Realising the repercussions on the economy and law and order
due to the ban on large industries, the district administration swung into action the very
next day ordering the district industrial in-charge to talk with all establishments urging
them not to entrench workers and ensure a part of their wages were paid.

The next step was hostels taken over for quarantine. By March 23rd, as cases continued to
rise, the police department swung into action erecting barricades within the district and at
its borders to further clamp down on intra and inter district movement. The
administration meanwhile ordered that all police check posts be supplied with furniture,
tents and drinking water to ensure perpetual manning by police personnel. With the
district and various zones within it effectively sealed, the administration requisitioned for
quarantine facilities with at least 6,000 beds in various places. The guest houses of
various big industries were put at the disposal of health authorities and the district
administration instructed officials to draw a list of various dharamshalas (charitable guest
houses) whose rooms could be requisitioned to increase quarantine capacity.

Additionally, hostels of government and privately owned educational institutions were

readied to house patients. After the order, 11 educational institutions gave hundreds of
hostel rooms to the administration. While the district administration was building the
infrastructure to meet the consequences of community transmission, medical teams were
already in the final stages of tracing down the first batch of suspected infections and all
those who were in their proximity. By March 25th, the administration was getting more
concerned about the situation at Brijesh Bangar Memorial Hospital in Bhilwara which
seemed to be the epicentre of the spread across the district. Of the 19 cases reported by
now, an overwhelming majority were medical professionals; many of whom worked at
this hospital. There were 63 patients in the Intensive Care Unit (ICU) of the hospital;
some of whom would later test positive for coronavirus. The hospital’s records were
seized and teams sent to track the families of all 63 patients in villages across the district.
Their families were subject to coronavirus tests and areas surrounding their homes
sprayed with disinfectants. Thus began the move of screening 92% of the population to
eradicate the disease from its roots. With no new coronavirus cases till date, the
‘Bhilwara model’ has become a talking point in policy circles on how ruthless isolation
and door-to-door screening can help stem the spread of the deadly pandemic.
 Similarly to that the Kerala model has also achieved a great success and has helped to
flatten the COVID-19 curve. 
 On January 23rd, three medical students travelled from Wuhan, China to their hometowns
in Alappuzha, Thrissur and Kasargod in Kerala, India. They had been studying at the
Wuhan Institute of Medical Sciences, but were evacuated from China — along with
hundreds of other students — after the government announced it would lock down the
city and others in Hubei province, in response to the coronavirus crisis. On returning, the
students were asked to report to their nearby hospitals for screenings and to self-isolate at
home, out of concern that someone could bring the virus — which had already infected
over 7,000 people and killed 170 others in China — home. A week later, on January 30,
one of the three students tested positive for the virus, becoming India’s COVID-19
Patient Zero. The student was immediately transferred to an isolation ward at the Thrissur
Medical College hospital and was started on a five-day course of antiviral medication.

For 28 days — two weeks longer than the globally-recommended quarantine period —
she stayed at the hospital, wearing disposable clothes, eating on plates that were then
immediately incinerated, and being tested for the virus every alternate day. By Feb 3, her
two colleagues from Wuhan had also tested positive and were isolated at the same
hospital. After they tested negative for a whole week, the students were released from the
hospital on Feb. 20, and allowed to return home. 
By the time the students were placed into quarantine, a state wide strategy to combat any
potential spread of the virus had already been put into place. As of January 25, the
government deployed healthcare teams to locate all returnees from China, screening them
and quarantining them at home. 

People returning from high-risk areas were asked to report to their nearby hospitals for
temperature checks. Local government bodies had been asked to monitor their own
localities for people who flew into the state after Jan. 14th. 
On Feb 3rd, the state also directed medical colleges and hospitals to set up isolation
wards and asked the virology institute (located in Maharashtra, a neighbouring state) to
set up a local facility to ensure speedy testing of labs. Twelve additional labs were also
set up to be able to identify COVID-19 patients early. 

Now, three months later, Kerala could be the first state in India to potentially flatten the
coronavirus curve. Even though it was the first state to report a coronavirus case, it boasts
the lowest mortality rate — two deaths out of 447 confirmed cases — and is already
considering easing restrictions in certain districts, while the rest of the country remains on
lockdown.
Even though India being the second largest populated country of the world and sharing
borders with the birth land of the virus the total number of cases till hasn’t reached that
high like the European countries because of its aggressive and well imposed methods to
tackle the outbreak. The country is still in lockdown up to May 3rd as given by the orders
of Mr. Modi and the country still fights with the virus by staying at home and until
further notice has been made.

 Mayhem in United States: The virus broadcasted its proper colours when the holocaust
started in the States. The total number of cases confirmed is 970,757 with the death toll of
54,941. The recovery rate is at 118,633 which provide Americans some ray of hope. Yet
the devastation and destruction of human welfare and economy is unprecedented. 

On February 27th, the number of infections passed 82,000 worldwide, including more
than 2,800 deaths; the US was considering invoking the Defence Production Act which
would grant President Donald Trump the power to expand industrial production of key
materials or products for national security. In Washington State a person died who was
infected of coronavirus on February 29th, marking the first fatality due to the virus in the
United States. The man in his 50s had underlying health conditions, and there was no
evidence he had close contact with an infected person or a relevant travel history that
would have exposed him to the virus. A death reported in Northern California on March
4th became the first fatality outside Washington State. The victim was an elderly man
with underlying health conditions, who was probably exposed to the virus on a trip
aboard a Princess Cruises ship that travelled from San Francisco to Mexico in February. 
A ship carrying more than 3,500 people was held at sea off the coast of California as it
travelled from Hawaii on March 4th. The Grand Princess previously carried a passenger
who became the first person to die from coronavirus in California, and was ordered to
stay at sea for days as it awaited test results. Officials later confirmed 21 positive cases of
coronavirus.

In the US, the White House and Senate leaders of both parties struck an agreement
on March 25th on a sweeping $2 trillion measure to aid workers, businesses and a
healthcare system strained by pandemic. By the end of the week, the US accounted for
the highest number of coronavirus infections in the world, recording more than 124,000
cases and 2,000 deaths, more than double the figure two days before. Hence the
conditions started worsening in the United States and it had already started to suffer a lot.
This critical situation of the US was due to silence and misinformation which led to
spread of the virus. 

Another major problem was medical supply shortages of Masks, gloves, gowns and
ventilators. Doctors and hospitals across the country, but particularly in areas hardest hit
by the pandemic, are scrambling for items essential to help those stricken by the virus and
protect medical professionals. The lack of adequate supplies has forced healthcare
workers to reuse existing sanitary garb or create their own makeshift gear. A shortage of
ventilators has state officials worried they will soon be forced into performing medical
triage, deciding on the fly who receives the life-sustaining support - and who doesn't.
There was failure in social distancing which thus resulted in such a critical situation of
the nation. College students on spring break from classes packed Florida beaches. New
York City residents filled subway cars. Across the country, there have been numerous
examples of Americans failing to heed the calls by public health professionals to avoid
close social contact, sometimes abetted by local and state government officials who have
been reluctant to order businesses to shutter and citizens to shelter in place. Even steps
taken with the best of intentions might have had adverse consequences. Curtailing public-
transportation services, such as New York's subway, may have led to trains and busses
that were more crowded. Universities that sent students home to their families may have
 contributed to the spread of the virus by returning infected individuals to cities,
neighbourhoods and homes not yet in full lockdown.

The US recorded on April 11th a total death toll of 20,071, surpassing Italy's toll of
19,468. Cases in the US topped 519,000.
On April 21, US President Donald Trump announced on Twitter that he "will be signing
an Executive Order to temporarily suspend immigration into the United States!" If the
coronavirus is exposing some of the flaws in the US healthcare system - high costs, a lack
of universal coverage and supply chains that are unable to withstand a shock - it also
could end up highlighting the strength of the nation's research and drug development
infrastructure.

Pharmaceutical manufacturers and medical researchers are rushing to learn more about
the virus in an attempt to devise new strategies to defeat the pandemic. One company has
developed a new fast-response test that can identify those carrying the virus almost
immediately, ending the current testing backlog and allowing public health officials to
quickly identify new outbreak hotspots and make quarantining decisions.
Thus these are various frantic measures adopted by the United States to outwit the spread
of the virus, yet the nations hasn’t completely recovered and all the citizens are still under
a major lockdown fighting with the disease. 

On April 23th, the number of US citizens who filed for first-time unemployment benefits
in the five weeks since the start of coronavirus-related lockdowns reached a record 26
million. On April 24th, the total death toll in the United States passed 50,000 amid more
than 880,000 reported cases. Thus, United States has become the nation with the highest
number of infected patients of COVID-19.

Highlights of WHO actions so far

 Harnessing a broad global coalition to develop and evaluate candidate vaccines as

quickly and safely as possible by convening and coordinating multiple public and
private partners and using the best scientific and public health evidence and ethical
principles.
 Mapping candidate vaccines and their progress across the world and fostering
regular open dialogue between researchers and vaccine developers to expedite the
exchange of scientific results, debate concerns and propose rapid and robust methods for
vaccine evaluation.
 Defining the desired characteristics of safe and effective vaccines to drive and focus
research that is public health and needs oriented.
 Coordinating clinical trials across the world to accelerate multiple actions with the aim
of providing a safe and effective vaccine as early as possible.

Important Questions to be Addressed:

1. How countries are using technology to fight coronavirus

 2. The technologies being used against the pandemic are raising questions about
excessive surveillance.
3. How countries are using technology to fight coronavirus
4. The technologies being used against the pandemic are raising questions about
excessive surveillance.
https://economictimes.indiatimes.com/tech/software/how-countries-are-using-technology-to-
fight-coronavirus/articleshow/74867177.cms?from=mdr
How governments can soften the economic blow of Coronavirus

 Governments have a role to play in softening the economic impact of Coronavirus.

 From spending on healthcare to business continuity plans, there are various options
available.

A key role of government is to protect the well-being of its people—most crucially and visibly
during emergencies such as the recent outbreak of the coronavirus. The IMF has $50
billion available in rapid-disbursing emergency financing to help countries suffering from the
virus. As Managing Director Kristalina Georgieva said, what we want is to guarantee that people
are not going to die because of a lack of money.

Saving lives

The priority for governments and the global community is to prevent people from contracting the
disease and to cure those who do. More health spending can save lives both at home and
globally.

Given the virus’ rapid contagion, action can help ensure that countries’ health systems—
including those that have limited capacity—do not become overwhelmed.

The health spending must occur regardless of how much room in the budget a country may have.
Low-income countries urgently need grants or zero-interest loans to finance the health spending
they might not otherwise be able to afford. Experience with past epidemics, such as Ebola, shows
that speed in deploying concessional finance is essential to contain the spread of the disease.

Developing an effective vaccine also requires public money.

A plan to protect people and firms

Governments should protect people from the economic impact of this global health crisis. Those
who are hit the hardest should not go bankrupt and lose their livelihood through no fault of their
own. A family-operated restaurant in a tourism-reliant country, or the employees of a factory
shut down because of a local quarantine will need support to weather the crisis.

Depending on their administrative capacity, governments can help people and firms right now in
several ways:
1. Spend money to prevent, detect, control, treat, and contain the virus, and to provide basic
services to people that have to be quarantined and to the businesses affected. For example,
national governments can allocate money for local governments to spend in these areas or
mobilize clinics and medical personnel to affected places, as China and Korea have done.

2. Provide timely, targeted, and temporary cash flow relief to the people and firms that are most
affected, until the emergency abates.

Give wage subsidies to people and firms to help curb contagion. For example, France, Japan, and
Korea are providing subsidies to firms and individuals for leave taken to stay home to care for
children during school closings. France is offering sick leave to people directly affected by the
virus who have to self-quarantine.

Expand and extend transfers—both cash and in-kind, especially for vulnerable groups. China is
accelerating payments of unemployment insurance benefits and expanding social safety nets.
Korea is increasing job seeker’s allowances for young adults and expanding them for low-
income households.

Provide tax relief for people and businesses who can’t afford to pay. China is easing the tax
burden for firms in the most vulnerable regions and sectors, including transportation, tourism,
and hotels. Korea is providing income and VAT tax extensions to businesses in the affected
industries. China, Italy, and Vietnam are offering tax extensions to cash-strapped
businesses. Iran is simplifying taxation for corporations and businesses. China is allowing for a
temporary suspension of social security contributions for firms.

3. Create a business continuity plan. Whether you are a ministry of finance or a tax or customs
administration, you need to provide services to citizens, taxpayers, and importers in case of
widespread contagion, relying as much as possible on electronic means. For example, in the
United States, the Federal Emergency Management Agency coordinates the continuity of
operations and activities in the federal government.

Some of these measures can occur through administrative means and others would require an
emergency budget, which would also take stock of the overall fiscal cost.

It is also important to communicate to the public how emergency action and changes to original
budgets are compatible with stability and sustainability. IMF capacity development can help
countries to strengthen their administrative emergency response capacities in public financial
management and revenue administration.

To support governments requiring financial assistance, several facilities are available from the

IMF and the global community, as highlighted by the IMFC.

Right now, the most effective fiscal support measures to the economy are the ones we discuss
above. These will prevent or limit the spread of the disease and protect the people and firms most
affected. Countries’ so-called automatic stabilizers—the fall in taxes and rise in unemployment
and other benefits for those whose incomes and profits decline—would also kick in.
 The next IMF Fiscal Monitor in April 2020 will return to these issues and provide further details
on policies undertaken until then by our member countries.

The economic effects of COVID-19 around the world

This article was updated on 23 April 2020.

Latest developments:

 Around 4.4 million Americans filed for unemployment last week.

 China's economy contracted in the first quarter of 2020 - the first time since records
began in 1992.

 Denmark has said companies registered in tax havens won't be able to access financial
assistance.

Have you read?

 Coronavirus and flu: Why COVID-19 poses more of a threat 

 'Over-reacting is better than non-reacting' - academics around the world share thoughts on
coronavirus

 CDC advises against gatherings of 50 or more - Today's COVID-19 updates and analysis

Confirmed cases of the COVID-19 coronavirus have surpassed 2.6 million globally. Businesses

are coping with lost revenue and disrupted supply chains as factory shutdowns and quarantine
measures spread across the globe, restricting movement and commerce.
Unemployment is skyrocketing, while policymakers across countries race to implement fiscal
and monetary measures to alleviate the financial burden on citizens and shore up economies
under severe strain.
The International Monetary Fund (IMF) on 9 April said the coronavirus pandemic had instigated
an economic downturn the likes of which the world has not experienced since the Great
Depression.
Here are some of the ways the outbreak is sending economic ripples around the world.
Predicted slump for Asia
On 15 April, the IMF warned economies in Asia would see no growth this year, for the first time
in 60 years, with the service sector particularly under pressure.
National lockdowns across the region have meant airlines, factories, shops and restaurants have
suffered the greatest economic shocks.
Just a day after the IMF warning, official data showed the Chinese economy had contracted in
the first quarter - the first time since quarterly records began in 1992.
Gross domestic product (GDP) in the world's second largest economy fell 6.8% in January-
March year-on-year - more than the 6.5% forecast by analysts and the opposite of the 6%
expansion in the fourth quarter of 2019.
The Chinese economy is likely to be hit further by reduced global demand for its products due to
the effect of the outbreak on economies around the world.
Data released on 16 March showed China's factory production plunged at the sharpest pace in
three decades in the first two months of the year.
For 2020, the country's economic growth is expected to fall to 2.5%, according to a Reuters poll
- its slowest in almost 50 years.

Monetary policy: central banks act but stocks, oil continue to come under steep pressure

To combat the economic fallout, the US Federal Reserve on 15 March cut its key interest rate to
near zero.

But the move, coordinated with central banks in Japan, Australia and New Zealand in a joint-
effort not seen since the 2008 financial crisis, has failed to shore up global investor sentiment. As
of 9 April, the S&P 500 stock index is down more than 13% since the start of the year, while
global oil prices have plummeted more than 47% year-to-date.

The Fed on 9 April unveiled a new batch of programs, saying it plans to provide $2.3 billion in
loans to small and midsize businesses, as well as US cities and states. The US central bank also
expanded its corporate lending program to include some classes of riskier debt.

Meanwhile, the European Central Bank (ECB) also took action, launching on 18 March a €750
billion Pandemic Emergency Purchase Programme that is expected to last until the end of this
year.

A fiscal response

On 20 March, the UK announced radical fiscal spending measures to counter the economic
impact of a worsening crisis. The government said it would pay up to 80% of the wages of
employees across the country unable to work, as most businesses shut their doors to help fight
the spread of coronavirus.

Earlier in the month, the Danish government announced it would help private companies
struggling to manage the fallout from the pandemic by covering 75% of employees' salaries, if
firms agreed not to cut staff.
Denmark has announced restrictions on companies that are registered in tax havens from
accessing financial aid. Companies applying for state aid will also have to commit to not paying
dividends or make share buy-backs this year and next.

Poland had already announced restrictions on access to state aid based on whether large firms
pay taxes in the country.

The European Union more broadly has implemented fiscal measures to shore up the
economy worth more than €3 trillion.

Meanwhile, the US government passed an unprecedented $2 trillion stimulus package at the end
of March, including direct payouts to millions of Americans.

The impact on employment

In the UK, the government's independent economics forecaster, the Office for Budget
Responsibility (OBR), warned on 14 April that the country's economy could shrink by a record
35% by June 2020.

It also estimates UK unemployment could to rise by 2.1 million, to 3.4 million, by the end of
June.

Around 4.4 million Americans filed unemployment claims in the week ending 18 April, showing
the continued impact of coronavirus on the US economy. That means more than 26 million
people have lost their jobs in the US over five consecutive weeks.
Unemployment claims have spiked during the coronavirus outbreak.
Image: FRED

At the start of April, data from Spain showed nearly 900,000 people have lost their jobs since its
lockdown started in mid-March. The official unemployment figure had also risen to 3.5 million -
the highest level since April 2017.

Meanwhile, Bloomberg reports that around half of jobs in Africa are at risk as a result of the
outbreak, according to the United Nations Economic Commission for Africa.

Impact on air travel

On 5 March - before the US travel ban was announced - the International Air Transport
Association (IATA) predictied the COVID-19 outbreak could cost airlines $113 billion in lost
revenue as fewer people take flights.

“The industry remains very fragile,” Brian Pearce, the IATA’s chief economist, told the
Associated Press. “There are lots of airlines that have got relatively narrow profit margins and
lots of debt and this could send some into a very difficult situation.”

On March 16, British Airways said it would cut flying capacity by at least 75% in April and
May. Other UK airlines, including Virgin Atlantic and easyJet also announced drastic cuts.
The travel and tourism industries were hit early on by economic disruption from the outbreak.

Besides the impact on airlines, the UN’s International Civil Aviation Organization (ICAO)

forecast that Japan could lose $1.29 billion of tourism revenue in the first quarter due to the drop
in Chinese travellers, while Thailand could lose $1.15 billion.

Disruption to commerce

The initial shortage of products and parts from China affected companies around the world, as
factories delayed opening after the Lunar New Year and workers stayed home to help reduce the
spread of the virus.

P.S. The following document is an amalgamation of all articles used for the drafting of the guide
and information presented in this document is for only for reference purposes. We wish you all
the best and look forward for great set of debate!