Should other countries seek reparations from China? COVID-19 causes over Rs 500 lakh crore loss to world economy
An analysis on world economies in wake of the coronavirus outbreak.
As the coronavirus outbreak continues to wreak havoc around the world, the economic toll arising from the pandemic is disastrous. The world economy is on the brink of collapse, and it is important to analyse the situation based on studies done by experts.
A report released by the United Nations called ''COVID-19 and World Of Work' stated that pandemic would result in loss of about 25 million jobs worldwide. It also stated that a rescue package worth about Rs 187 lakh crore is needed for two-thirds of the world's population lives in developing countries.
On the Other hand, the World Bank stated that the pandemic will make 10 million people destitute in East Asia and the Asia Pacific regions.
According to the British think tank, Henry Jackson Society, the virus has caused more than Rs 300 million crore economic losses in countries around the world. Meanwhile, The Organization for Economic Co-operation and Development predicted that the world's GDP growth rate could be only one and a half percent in 2020 in the wake of the outbreak compared to around 3% before the outbreak.
Now a question arises in everybody's mind, Does other countries seek reparations from China?-the origin of the outbreak, as the virus will have devastating consequences on economies all around the world.
The governments of all countries will put money in the market to revive the economy, however, that money will be recovered by implementing austerity measures and taxing the common people of the country.
Now, What would happen if the world starts seeking reparations from China? An assessment done by the Henry Jackson Society stated, "If Britain wants, then it can claim $449 billion from China i.e. about Rs 34 lakh crores. America can also claim $1200 billion i.e. Rs 90 lakh crores as compensation from China. Whereas Canada can claim $59 billion i.e. about Rs 4.5 lakh crores and Australia $37 billion i.e. about Rs 2 lakh 80 thousand crores."
Until now, no country has officially recovered any compensation from China, however, the picture will be clear once the countries make announcements economic losses and relief packages in the respective countries in the wake of the outbreak.