Lights Out

-        From globalization to al-hawsala... in the time of the Coronavirus

-        I will not write about health measures... while we are in home quarantine and isolation for weeks... and this is what we implement with full precision.. for the matter is not retreating in the face of the gusts of a hurricane, after which come beneficial rains.. rather the required prevention is against the onslaught of the Coronavirus pandemic and its targeting of the citadels of the human self and breathing and life.!!.. meaning that it carries the Black Death.. so we must persist in following government measures and health instructions and guidance... a necessary protection to try to avoid contact with this virus.. and we must prove that in crises we are in one boat whose helmsman is the state or the government... and that we do not invent illusions and mythical tales about a serious and dangerous subject, but rather we face facts and realities.. that could silence the pulse of life for millions of people, God forbid

-        I will write some thoughts regarding the economic repercussions of this lethal pandemic... which has led and continues to lead to the collapse of the economic wall in most countries that have made many in this world weep and will make many more weep..!! The repercussions of the spread of the Coronavirus pandemic.. and as a result of the measures and steps that states took to confront it, sectors of the economy in each country stopped to varying degrees, as transport sectors including airlines, tourism and hotels, the small business sector and sole proprietorships, and the services and entertainment sector were affected, which will increase unemployment levels by loss of jobs and human resources such as workers and employees. Many borders and crossings were closed, including airports, seaports and land borders.. so many aspects of economic life in each country stopped, and schools and universities were suspended, ..and gatherings were prohibited except for family home quarantine... while other sectors thrived on the other side, in such crises like the food sector, e-commerce and robots .and medicines etc., and as a result taxes will fall in most countries, since there are no exports at the previous levels prior to the outbreak of the disease, so long as the productive sector is disabled in many of its aspects, and imports have certainly fallen for some countries, except for some goods and services related to treating the spread of the disease..

-        Countries have different financial capacities for this type of crisis economy, so what have states prepared to address the economic effects on their societies... We turn to the United States of America, owner of the world’s largest economy; the news reported that it prepared economic packages amounting to $2 trillion, where the two ruling parties, the Republican majority in the Senate and the Democratic majority in the House of Representatives.. agreed on presenting a bill for the President to sign so the White House can implement it, and it is the largest aid package for their country in their history.. Among some details of this package, support will be provided to workers and small businesses... and Congress will obtain oversight authority over loans that will be allocated to large companies.. under the bill the economy will be flooded with capital by sending checks to the majority of American adults in the amount of (checks), $1,200 for each individual.. and $500 for most children, and the establishment of loan programs worth $367 billion for small businesses and the creation of a fund worth $500 billion for industries and cities

-        The package includes other allocations: a massive increase in unemployment insurance, $150 billion, for government and local stimulus funds, and $130 billion for hospitals among many allocations . The stock market rose sharply on Tuesday in anticipation of the agreement where the Dow Jones Industrial Average rose by more than 2,100 points, an 11.4% increase

-        On the other hand, attention turns to the virtual G20 leaders’ conference by telephone today chaired by King Salman bin Abdulaziz, King of the Kingdom of Saudi Arabia, to discuss the spread of the Coronavirus pandemic and to come up with practical proposals to deal with the global spreading crisis. It is certain that the G20 finance ministers and central bank governors who met days ago presented detailed proposals related to current economic conditions, which are likely to result in a global economic recession... among them, as announced by the President of the World Bank Group, projects for 49 developing countries with allocations of about $150 billion, during a conference of finance ministers and central bank governors of the G20 a few days ago..."

-        The G20 leaders’ conference, held today Thursday, aims to preserve global economic stability, global financial markets, restore confidence, and prevent negative economic effects, and to address the risks to debt sustainability, especially for low-income countries, and the world awaits what will result from the exceptional virtual summit of the G20 leaders.. owners of the largest national economies in the world.. and how they will discuss stopping the economic, health and social repercussions due to the virus, and limiting its human and economic impact..."

-        It is worth mentioning, as reported in the news published by the Saudi newspaper Asharq Al-Awsat on Thursday 26/3/2020, that there will be invited leaders in addition to the Group leaders, countries such as Spain, Jordan, Switzerland and Singapore, and international organizations, such as the World Health Organization, the International Monetary Fund and the World Bank Group, the United Nations, the Food and Agriculture Organization, the Financial Stability Board, the International Labour Organization, the Organisation for Economic Co-operation and Development, and the World Trade Organization, according to Asharq Al-Awsat today –26-3-2020, and regional organizations will be represented by the Socialist Republic of Vietnam as Chair of the Association of Southeast Asian Nations, the Republic of South Africa as Chair of the African Union, and the United Arab Emirates as Chair of the Gulf Cooperation Council, and the Republic of Rwanda as Chair of the New Partnership for Africa’s Development.... On the individual country side, it is certain that most countries will request loans to confront the effects of the spread of the pandemic, and to support some of their affected sectors such as health sectors, financial sectors, energy sectors, retail sectors, and human resources sectors

-        Such an expectation of loan requests from international financial organizations and institutions comes at a time when oil prices have fallen sharply; such a collapse in energy prices will constitute a financial crisis for countries that depend on oil exports as their main income, such as Iran, which, as news agencies recently reported, requested a loan from these international financial institutions for the first time in 60 years. The collapse of oil prices for exporters has undermined the national economy and resulted in a large contraction in the country’s gross output. In addition, such a crisis comes while networks of external and internal debt for many countries are at their peak, and in this regard the President of the World Bank Group in the meeting of finance ministers and central bank governors of the G20 as we noted earlier called for addressing the problem of international debt, restructuring it, and deferring debt service payments especially for developing countries.. and particularly low-income countries according to creditor classifications... and therefore... risks to the sustainability of external debt... an important issue on the agenda of the exceptional conference.... awaiting the results of the summit of the world’s economies in the international economy...!!( dated 26-3-2020 ).