An Essay on the Political Economy Effects of the COVID-19 Pandemic as Twin Crises

Abstract

The subject and purpose of this study is to examine the new type of coronavirus disease (COVID-19), which has turned into a global epidemic, with an economic-political approach. There are twin crises in the form of a health crisis (high human deaths) and an economic crisis (recession). Trillion-dollar aid packages from governments and international financial organizations also show that this global public health crisis has created an economic crisis. In the context of these crises, G-20 countries that did not intervene in their transmission channels in a timely manner showed the worst situations. This epidemic, calculated with the SIR model, is global, but the measures are local. What makes a clean, masked, and socially distant life obligatory against the risk of contamination is that this epidemic locks or restricts the whole economy, especially trade, education, and tourism. Measures called “new normalization” have started to relax in order to prevent further increase in unemployment and poverty.