Homework answers / question archive / ECN 2034 MACROECONOMICS Excerpt 1: Developing Countries May Suffer More from COVID-19   In developing countries, the vulnerability to the pandemic is higher and the ability to deal with it through policy is lower than in developed countries

ECN 2034 MACROECONOMICS Excerpt 1: Developing Countries May Suffer More from COVID-19   In developing countries, the vulnerability to the pandemic is higher and the ability to deal with it through policy is lower than in developed countries

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ECN 2034 MACROECONOMICS

Excerpt 1: Developing Countries May Suffer More from COVID-19  

In developing countries, the vulnerability to the pandemic is higher and the ability to deal with it through policy is lower than in developed countries. In addition to the direct effects, for developing countries exposed to global conditions, COVID-19 brings a sharp external demand shock. This is the case in, for example, countries in East Asia where trade and tourism are a large part of the economy (World Bank 2020a), developing countries that heavily rely on commodity exports for government revenues (World Bank 2018; The Economist 2020a), and those that depend on remittances from developed countries (Hausmann 2020). 

Source: World Bank, March 2020 

 

Excerpt 2: How Should Policy Responses to The Covid-19 Pandemic Differ in The Developing World?  

Governments in advanced economies have responded to the COVID-19 pandemic with dramatic and unprecedented policy responses. Huge swaths of the economy have been ordered shut down and millions of workers required to stay home indefinitely. To cushion against the loss of income, governments have sent direct transfers to workers affected by the lockdowns, in addition to making regular social insurance payments. The total costs of these and other transfers has passed 10 percent of GDP in a number of advanced countries. As COVID-19 made its way to less-developed countries, policy makers there largely followed suit with similarly sweeping lockdowns. Yet it quickly became clear that policy responses in the developing world could not just mimic those of the west. 

Source: NBER Working Paper, May 2020 

 

Excerpt 3: Divergent Recoveries amid High Uncertainty 

Global prospects remain highly uncertain one year into the pandemic. New virus mutations and the accumulating human toll raise concerns, even as growing vaccine coverage lifts sentiment. Economic recoveries are diverging across countries and sectors, reflecting variation in pandemic-induced disruptions and the extent of policy support. The outlook depends not just on the outcome of the battle between the virus and vaccines, it also hinges on how effectively economic policies deployed under high uncertainty can limit lasting damage from this unprecedented crisis.

Source: World Economic Outlook, April 2021

Question:

According to the given excerpts, the effects of COVID-19 and policy responses in developing countries vary from those in developed countries, resulting in divergent recovery rates. Evaluate the above statement with empirical evidence.

 

A few useful online sources to get these data or information are provided below:

1. Alon, T. M., Kim, M., Lagakos, D., & VanVuren, M. (2020). How Should Policy Responses to the COVID-19 Pandemic Differ in the Developing World? (No. w27273). National Bureau of Economic Research.ECN 2034/ Assignment (Q) / JUNE 21 3 
2. Gopinath, G (2020), “Limiting the Economic Fallout of the Coronavirus with Large Targeted Policies”, IMF Blog, 9 March. 
3. International Monetary Fund. 2021. World Economic Outlook: Managing Divergent Recoveries. Washington, DC, April. 
4. Alon, T. M., Kim, M., Lagakos, D., & VanVuren, M. (2020). How should policy responses to the covid-19 pandemic differ in the developing world? (No. w27273). National Bureau of Economic Research

 

Important reminder:

1. All assignments must be submitted via Turnitin by 18th June 2021. Any late assignments will be penalized

 

 

 

 

 

 

 

 

 

Assessment criteria 

 

Allocation of marks for this essay is given in the following broad proportions:

Marking Criterion	Marks
Contents: Introduction Body: Comparison of impact, policies, and recovery rates between developing and developed countries (at least one of each)   Diagrams/tables – clearly explained.   Conclusion   Reference & citation/ Layout & structure/ Abide by word limit	10     50       20   10   10
Total	100

 

Guidelines to Writing Essay

1. Essays should have an introduction, body and a conclusion.

1. 1. Introduction: Explain the reasons / objectives of your essay. State any

		assumptions and describe the conditions for your discussion.
1.2	Body:	Explanation and analysis of your topic of discussion. Apply economic concepts and theories into your explanations where possible. Graphs and diagrams should be drawn with MS Office tools. Scanned diagrams and graphs are not acceptable. Each key point should be supported with examples or references and explained in separate paragraphs.
1.3	Conclusion:	A summary of your discussion, indicating the ideas and concepts you have discussed in the body.

 

 

 

 

2. Students are required to cite references in their essays when they quote or use any information obtained from other sources. Failure to do so may constitute plagiarism and disciplinary actions will be taken. Essays with a large proportion of citation and paraphrasing will not be awarded with high marks.
   1. Plagiarism, whether inadvertent or deliberate, shall include the following:
      1. Word-for-word copying of sentences or whole paragraphs from one or more sources, or presenting substantial extracts from books, articles, thesis, other unpublished work such as working papers, seminar and conference papers, internal reports, computer software, lecture notes or tapes, without clearly indicating their origin.
      2. Using very close paraphrasing of sentences or whole paragraphs without due acknowledgement in the form of reference to the original.
      3. Submitting another student’s work in whole or in part.
      4. Use of other person’s ideas, work or research data without acknowledgement.

           

1. 2. Collusion, whether inadvertent or deliberate, shall include the following
      1. Submitting an “individual assignment” that was jointly prepared by the candidate and any other third party, e.g. other students, family, professionals, or tutors/lecturers.
      2. Submitting a “group assignment” that was jointly prepared by the group and any external party, e.g. family, students from other courses, or professionals.
      3. Copying each other’s work and passing it off as an individual effort.

 

3. Students should use the Harvard Referencing Style for citations and references. You may visit the following websites for examples.