Economic consequences of COVID-19 on South Asia greater than healthcare challenges: Report
Washington: The economic consequences of COVID-19 pandemic on South Asia are proving to be even greater than the healthcare challenges in the region, according to a report compiled by a top American think-tank.
Titled "Nine Months of COVID-19: The Impact on South Asia", the report released by the Hudson Institute think-tank on Friday, is co-authored by Husain Haqqani, former Pakistan ambassador to the US, and Aparna Pande and is an update to their 30-page report "Crisis from Kolkata to Kabul: COVID-19's Impact on South Asia" published in May 2020.
"The economic consequences of COVID-19 on South Asia are proving to be even greater than the healthcare challenges in the region. Different South Asian countries have dealt with the pandemic in various ways, but the economic costs overall seem to be higher than the healthcare consequences," said Haqqani.
All these countries have poor healthcare infrastructure and are home to large numbers of people living below the poverty line, setting the foundation for uphill battles when tackling health crises, he said.
"In order to ensure a safe return to normal life and a resumption of economic activity, South Asian governments would benefit from focusing more on the development of human capital, Haqqani said.
The report notes that after claiming that Pakistan had undergone a miracle in managing to curtail the spread of COVID-19 cases, the country is once again facing a rise in infection.
"In addition, the last nine months have witnessed further curtailment of media and political opposition, an economy in crisis, and increasing role of the military," it said.
According to the report, in Sri Lanka too, the pandemic has worsened the debt crisis and tightened the grip of the Rajapaksha brothers on polity and society.
With rising cases, Bangladesh is the second most severely hit economy and the pandemic has worsened income inequality, it said.
Turning to Afghanistan, while the healthcare crisis is taking its toll, the Afghans are also suffering from the continued violent attacks by the Taliban and ISIS, it added.
When it comes to India, the largest country in the region, the report notes that while the India-US relations "remain on an upward trajectory" with an economy that has slowed down drastically, and a clamping down on dissent within the country, "India's democratic credentials face challenges."
The report points to China's continued "attempts to deepen its strategic and economic ties with countries in the region", warning that the "the global US-China peer competition will also play out in South Asia, with Pakistan and Sri Lanka becoming closer to China and other countries safeguarding their options."
According to Johns Hopkins University, more than 1,349,700 people have died and there are over 56,270,000 confirmed cases across the world.
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West Asia crisis: India flags energy supply concerns; PM speaks to leaders of Oman, Kuwait, Qatar
New Delhi (PTI): As the conflict in West Asia widened, India on Tuesday emphasised the interest of one crore Indian nationals in the region and voiced concern over consequences for the Indian economy due to possible disruptions in energy supplies, even as Prime Minister Narendra Modi discussed the evolving situation with leaders of Oman, Kuwait and Qatar.
In its second statement since the US-Israel strikes on Iran and Tehran's subsequent retaliation, India once again called for "dialogue and diplomacy" to end the conflict, noting that New Delhi has critical stakes in the security and stability of West Asia and the current developments "evoke great anxiety".
New Delhi said it will continue to closely monitor the evolving situation and take relevant decisions in the national interest, adding it is in touch with the governments in the region as well as other key partners.
"In recent days, we have not only witnessed an intensification of the conflict but also its spread to other nations. The destruction and deaths have mounted, even as normal life and economic activities come to a halt," the Ministry of External Affairs (MEA) said.
"As a proximate neighbour with critical stakes in the security and stability of the region, these developments evoke great anxiety."
The ministry said almost one crore Indian citizens are living in West Asia, and their safety and well-being are of "utmost priority" for New Delhi. "We cannot be impervious to any development that negatively affects them," it said.
The conflict in West Asia intensified with Iran continuing to pound several Gulf countries in retaliation for the joint attack against it by Israel and the US. The US and Israel have also carried out fresh strikes on Iran.
As part of its offensive, Iran has blocked the strategically located Strait of Hormuz shipping route, triggering a surge in global oil prices.
"Our trade and energy supply chains also traverse this geography. Any major disruption has serious consequences for the Indian economy," the ministry said.
The Strait of Hormuz handles nearly 20 per cent of the world's total oil and gas supplies. About 50 per cent of India's oil imports, or roughly 2.6 million barrels a day, pass through the Strait.
Iran has carried out a wave of attacks mainly targeting Israel and American military bases in several Gulf countries, including the UAE, Bahrain, Kuwait, Jordan and Saudi Arabia.
The Iranian retaliation increased after Tehran announced early Sunday that its Supreme Leader Ayatollah Ali Khamenei had been killed in the Israel-US strike.
"As a country whose nationals are prominent in the global workforce, India is also firmly opposed to attacks on merchant shipping. Already, some Indian nationals have lost their lives or are missing as a result of such attacks in the last few days," it said.
"In this background, India strongly reiterates its call for dialogue and diplomacy. We raise our voice clearly in favour of an early end to the conflict. Already, many lives have been regrettably lost, and we express our grief in that regard," it added.
It is learnt that at least three Indian nationals were killed in Iranian attacks on two merchant vessels in the waters off Oman.
The statement by the MEA, however, was silent on the killing of Ayatollah Khamenei.
The ministry said Indian embassies and consulates in the affected countries remain in close touch with Indian nationals and community organisations, issuing regular advisories.
"They have also extended all possible help to those stranded by the conflict. The embassies and consulates will continue to be proactive in addressing various consular aspects of this conflict," it said.
"We are in touch with the governments of this region as well as other key partners. The prime minister and external affairs minister have held discussions with their counterparts," it added.
Following his phone conversation with the Emir of Qatar, Sheikh Tamim bin Hamad Al Thani, PM Modi said India stands "firmly" in solidarity with the Gulf nation and strongly condemns any violation of its "sovereignty and territorial integrity".
"We emphasised the urgent need to restore peace and stability in the region through dialogue and diplomacy. I also conveyed my appreciation for his continued support and care for the Indian community in Qatar during this challenging time," he said.
The prime minister described his phone conversation with the Crown Prince of Kuwait, Sheikh Sabah Al-Khaled Al-Hamad Al-Mubarak Al-Sabah, as "productive" and conveyed to him that India condemns the violation of Kuwait's sovereignty and territorial integrity.
"We underscored the significance of dialogue and diplomacy in restoring regional peace and stability. Appreciated the Kuwaiti leadership's continued support to ensure the safety and well-being of the Indian community in Kuwait," Modi said on social media.
In his phone conversation with Oman Sultan Haitham bin Tariq, Modi "deeply appreciated" Oman's continued support for the Indian community.
"Condemned the violation of Oman's sovereignty and territorial integrity.
We agreed that sustained diplomatic engagement is essential for the earliest restoration of regional peace and stability," the prime minister said.
India issued the first statement on February 28, hours after the US and Israel launched the military offensives against Iran.
"We had expressed our deep concern at the cankar spoke to the European Union's High Representative for Foreign Affairs and Security Policy Kaja Kallas and discussed the situation in West Asia. Our discussions focused on the ongoing conflict in Iran and the Gulf," Jaishankar said on X.
The US military has said six of its personnel were killed in the conflict so far. The US-Israeli strikes have killed at least 787 people, the Iranian Red Crescent Society said. According to reports, at least 11 people were killed in Israel.
In a related development, the Indian embassy in Iran has relocated most Indian students from Tehran.
"Due to the heightened risk perception in Tehran city, the Embassy of India has relocated most Indian students who were in Tehran," the Indian mission said.
The students were taken to locations outside of Tehran. The embassy arranged transportation, food and accommodation for the students.
