The coronavirus pandemic will leave behind a global recession with small businesses, self-employed and daily wagers taking the worst hit, Mahindra Group chairman Anand Mahindra said on Thursday.
“The virus will eventually be conquered, but it will have left behind a global recession. The costs of that are incalculably high at this time. The most fearsome toll will be on small businesses, the self-employed & those whose lives depend on meagre daily wages,” Mahindra said in a tweet.
He added that apart from the toll on lives, the legacy of COVID-19 may well be deaths due to stress, loss of livelihoods, a rise in homelessness and in extreme situations, civil unrest. “The only global experience that has lessons for us in the current situation is the last world war. In the aftermath of WW2, the US came up with the Marshall plan to revive Europe, effectively a giant fiscal pump-priming,” Mahindra said.
He added that in the US, the government dramatically dismantled regulations and opened up the economy to trade and these actions led to a boom-cycle that stretched to 1975.
“This time, there will be no victors, only the vanquished. So every country will have to create its own Post “VirusWar” Marshall plan & take care of those in society who are hit the hardest. Perhaps we too can build the foundations of a sustained global growth cycle,” Mahindra said.