COVID-19 has governments at all levels operating in a context of radical uncertainty, and faced with difficult trade-offs given the health, economic and social challenges it raises. The regional and local impact of the COVID-19 crisis is highly heterogeneous, with a strong territorial dimension and significant implications for crisis management and policy responses. This paper takes an in-depth look at the health/social, economic, and fiscal impact related to the COVID-19 crisis. It provides good practice examples from all OECD countries and beyond, to help mitigate the territorial effects of the crisis, and offers ten takeaways on managing COVID-19’s territorial impact, its implications for multi-level governance, subnational finance and public investment, as well as points for policy-makers to consider as they build more resilient regions. Governments should protect people from the economic impact of this global health crisis. Those who are hit the hardest should not go bankrupt and lose their livelihood through no fault of their own. A family-operated restaurant in a tourism-reliant country, or the employees of a factory shut down because of a local quarantine will need support to weather the crisis. Spend money to prevent, detect, control, treat, and contain the virus, and to provide basic services to people that have to be quarantined and to the businesses affected. For example, national governments can allocate money for local governments to spend in these areas or mobilize clinics and medical personnel to affected places, as China and Korea have done. Give wage subsidies to people and firms to help curb contagion. For example, France, Japan, and Korea are providing subsidies to firms and individuals for leave taken to stay home to care for children during school closings. France is offering sick leave to people directly affected by the virus who have to self-quarantine. Expand and extend transfers—both cash and in-kind, especially for vulnerable groups. China is accelerating payments of unemployment insurance benefits and expanding social safety nets. Korea is increasing job seeker’s allowances for young adults and expanding them for low-income households. Provide tax relief for people and businesses who can’t afford to pay. China is easing the tax burden for firms in the most vulnerable regions and sectors, including transportation, tourism, and hotels. Korea is providing income and VAT tax extensions to businesses in the affected industries. China, Italy, and Vietnam are offering tax extensions to cash-strapped businesses. Iran is simplifying taxation for corporations and businesses. China is allowing for a temporary suspension of social security contributions for firms.
The writter is a researcher,economic analyst,columnist,guest lecturer of professional training institute,poet,and banking professional.