The UN Economic Commission for Asia and the Pacific (ESCAP) has released a policy note on key impacts of COVID-19 in the region and examples of national responses, along with short- and medium-term recommendations for moving towards a sustainable future. The note argues that the pandemic offers Asia-Pacific governments a chance to build resilience through strengthened and systemic health and social protection measures for all.

The policy note titled, ‘The Impact and Policy Responses for COVID-19 in Asia and the Pacific,’ observes impacts from COVID-19 on the region’s economic activities, demographics, and urbanization, as well as negative impacts on SDG progress. The region is home to over two-thirds of the global population, the world’s most populous cities, over 46 million migrants, and the bulk of the world’s energy supply and consumption and industrial activities. Initial measures to contain the spread of COVID-19 have reduced aggregate demand, particularly on service sectors, such as civil aviation, hospitality, retail, and tourism, and on international demand for commodities, especially oil.

On the economy, the authors call for short-term economic responses to “prioritize people over economic recovery.” Immediate and large fiscal measures are then required to contain COVID-19, cure people, and ensure economic and financial stability. Among the country-specific examples of fiscal support, the note highlights that Hong Kong, China, and Singapore have launched funds to subsidize individual sectors, such as food, retail, transport, and tourism. The authors recommend that countries facilitate cross-border movement of essential medicines, medical equipment and teams, and other essential goods, while also removing tariffs and non-tariff measures.

Stimulus packages should not support business behaviors that contribute to environmental degradation.

On the environment, the note finds that measures to contain COVID-19 have resulted in reductions of “15 to 40 percent in output across key industrial sectors in China alone,” with coal consumption 3% lower and satellite-based nitrogen dioxide levels 3% lower. The authors observe that this “dramatic drop” of nitrogen dioxide emissions “demonstrates how much drastically reducing transport and industrial activity can impact emissions.” The note recommends policy measures grounded in sustainability to both fight COVID-19 and enable the Asia-Pacific region to address climate change and sustainable development, such as government stimulus packages to accelerate decarbonization and greening of the economy, including sustainable mobility. In addition, the note cautions that stimulus packages should not support business behaviors that contribute to environmental degradation. The note further recommends regional cooperation to ban illegal trade of wildlife, stop habitat loss, and adopt international sanitary standards.

On social impacts, the note highlights health inequalities in the Asia-Pacific region, including 1.6 billion people who lack access to basic sanitation, and 260 million who lack access to clean water at home, therefore hindering their ability to employ frequent handwashing as a preventive measure against COVID-19. The note also observes the vulnerability of older people, persons with disabilities, and migrant workers to the virus. The authors recommend placing vulnerable populations at the center of social policy reform packages in the short- and medium-term, including by establishing systems for universal health care and universal social protection. In the long-term, the note suggests that countries invest in strengthening social protection and enhancing emergency preparedness to minimize the impact of future health emergencies and enhance resilience of economies. The authors also suggest investing in reducing the digital divide, observing that digital communication has played a key role in enabling social distancing.

Finally, the note draws attention to potential regional cooperation to establish a public health emergency fund and coordinate debt relief measures. ESCAP and other UN bodies could manage an emergency fund to help mobilize financial resources at the regional level and provide targeted support for countries most affected by the virus, the note suggests. [ESCAP press release] [Publication: The Impact and Policy Responses for COVID-19 in Asia and the Pacific]