Set up Covid Commission to Reignite the Economy

Context: The Covid-19 pandemic has exacerbated the challenges of public policy. The policies had to suit the expectations of the common man in this persistent crisis while maintaining democratic processes.

Impact of COVID-19 pandemic:

• An unchecked threat to human life and millions of people losing their livelihoods across the globe. 

• For E.g. UK COVID Commission said that they have lost 18 years of growth in three months of the pandemic. 

• Shattered Healthcare Economy due to excessive burden during the pandemic. 
• Economic upheaval:  Globalisation in a state of suspended animation, raised economic nationalism and exposed flaws in economic growth policies. 

• Developing economies such as India, are challenged by under-resourced policies and unappreciated governance.

• Impact on Innovation and adaptations: The pandemic exhibited the urgency for skilled policymaking with uncertain budgets, undefined rules and rising aspirations of citizens. 
• The governments had to experiment with strategies that were economically, epidemiologically, and politically feasible.

Way Forward:

• Nutrition security: Need to improve the sustainability of food production systems and value addition, with due focus on nutrition security.
• New growth paradigm: With more emphasis on health and environment as two key constituents for meaningful economic growth. 

• Co-evolution: The pandemic requires regular tracking of infections as well as economic activities. 
• The policies regarding the private and public sectors also had to be moderated to enable them to restart economic activities.

• Pandemic-driven policymaking: Speedier decision-making, containment of the virus through behavioural changes, development of a vaccine, financial stimulus to businesses, and greater care for the most vulnerable populations.

• The liberalisation of tax laws: Full or partial liberalisation of tax laws, policies along with monetary controls and regulations will need recalibration.
• Vibrant response system: Policymakers have to make difficult choices under extreme uncertainties, balancing the health and economic outcomes.
• Extending the term of the 15th Finance Commission: which can be tasked to assess state finances post-pandemic.
• National COVID Commission: For the recalibration of economic and health policies to reignite the economy in the post COVID era.