Economical conditions in the era of Coronavirus

 

The coronavirus pandemic is threatening to set back years of progress in poverty reduction and further entrench existing inequalities. The World Bank estimates that in 2020 — for the first time in over two decades — extreme poverty rate will rise, reversing a trend that has lifted nearly a half billion people out of extreme poverty since 2010. As the world looks for ways to rebuild, it will be critical that businesses adopt an inclusive approach that helps those at the base of the economic pyramid.

Although the coronavirus doesn’t discriminate, it’s clear that in rich and poor countries alike the impact is greater on the most vulnerable. The insidious nature of the virus has heightened health risks among individuals who already lack access to affordable care. If you don’t have access to soap and clean water, regular hand washing becomes nearly impossible. Social distancing isn’t practical in crowded housing conditions. Distance learning and e-commerce doesn’t work if you can’t afford an internet connection. As jobs are lost and livelihoods impacted, many lack the savings to sustain themselves through an economic downturn.

But here is some good news. During the ongoing coronavirus pandemic, we are seeing many companies respond to the crisis by reorienting and adapting their business models and operations — not only to continue to be able work with and serve their suppliers and customers at the base of the economic pyramid but also to deliver COVID-related messages and support.

Our inclusive business team did some analysis on how some of IFC’s clients are adapting to the crisis. From adjusting pricing models to adapting product offerings, these companies offer valuable insight into how to address the needs of those at the base of the pyramid. It is also demonstrating how private sector companies can leverage their existing networks and infrastructure to be essential actors during the crisis.

In Bangladesh, microfinance institution BRAC is leveraging its 100,000 field staff to raise awareness about the virus and crucial hygiene measures, teach hand washing, and distribute printed information and hygiene products.

In Jordan, vocational education company Luminus, is creating an App that will enable its students — many of whom are vulnerable youths and refugees — to access content more easily. This development comes after data showed that 70 percent of students are accessing the learning management system through their phones.