The pandemic forced the states of the West and East to look for ways to save the economy. Each country is fighting the crisis in its own way, but around the world, mutual support of business and government has become a symbol of justice.
During the pandemic, the demand for justice has grown in society – but do we understand what it is? Trends and investment company A1 understand the history of the concept of justice: how did our ancestors see it, and how do we see it? What can make our society more just? Is fairness possible in business, and if so, what might it look like?
Wind from the East
With the onset of the COVID-19 outbreak in Asia, the word “support” has become increasingly common in relations between the state and business. Governments have taken a number of measures to cushion the economic blow and help businesses weather the stress of the coronavirus. The Chinese government exempted the income of medicine, tourism, restaurant business from taxes, introduced a temporary deferral of debt repayment by enterprises, and provided subsidies to small and medium-sized businesses. Vietnam has introduced a tax deferral for five months, and Thailand has extended the corporate income tax deadline by three months. Governments have supported the transition of business from offline to online. The study showed that such a transformation would not only help businesses survive, but also add between $2,6 trillion and $3,1 trillion to the GDP of the Asia-Pacific region.
Businesses have also joined in the fight against the pandemic. Chinese entrepreneur Jack Ma, founder of Alibaba Group, donated a total of $14,5 million to two government research organizations in the republic to develop a vaccine. The charitable organization of Hong Kong’s richest man, Li Ka-shing, has donated $13 million for medical equipment for hospitals in Wuhan and Hong Kong. In addition to cash contributions, the business undertook to solve problems at the forefront: to arrange the delivery of food to hospitals, buy food from farmers, help the families of doctors and victims of the coronavirus.
West Against Pandemics
In March, the coronavirus reached Europe. Italy was one of the first to start saving businesses: the government allocated €10 billion to support families and employment of workers, suspended tax payments for industries and professions most affected by the crisis. France adopted an anti-crisis plan to support businesses worth €345 billion, introduced loans with low interest rates, and canceled rent and utility bills for small and medium-sized enterprises. The UK pledged to pay up to 80% of employees’ salaries in the amount of up to £2,5 thousand per person per month and provide interest-free loans for up to 12 months to restore business.
The giants of Western business have joined the process of fighting the pandemic. Mark Zuckerberg donated $25 million to research COVID-19 treatments, Bill Gates gave $100 million to build infrastructure to treat patients in Africa and South Asia, Twitter co-founder Jack Dorsey donated $1 billion to the fight against coronavirus, almost a third of his fortune – everyone began to help everyone.
Economic Confidence Trick
China, once the epicenter of the virus, is now rapidly emerging from the economic crisis – the country’s GDP increased by 3,2% in the second quarter. The People’s Republic has supported businesses with measures ranging from tax cuts to employment subsidies, but these policies have not always been properly implemented. Aid has reached middle- and high-income populations, but low-income Chinese have been left behind, facing unemployment and low subsidies that have failed to reverse the alarming situation.
Nineteen countries in Europe experienced a 19% quarter-on-quarter decline in GDP from April to July, the sharpest decline since 12,1. France, one of the largest economies in the eurozone, lost 1995%, while Spain’s performance fell by 13,8%. At the same time, the region’s economy is showing signs of recovery: the number of unemployed has decreased, and the flow of investment to European markets has increased. But the encouraging situation in Europe is neither unambiguous nor all-encompassing. In Spain, the virus continues to threaten lives and livelihoods. Italy, having coped with mass deaths, found itself in a chronic state of constant economic problems. The failure of the UK in the fight against the pandemic has shaken faith in the government and instilled anxiety in the population about their fate.
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