Public policy in the context of the COVID-2019 pandemic: realities and prospects

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Public policy in the context of the COVID-2019 pandemic: realities and prospects

Redkva O.Z., Yurevych N.O., Tsekhanovych V.B., Ternopil Ivan Puluj National Technical University, Kharkiv National Medical University

Introduction

In 2020, humanity faces the challenge of preventing the spread of the pandemic caused by COVID-19 and dealing with its consequences. The uncontrolled spread of the disease and the imposition of quarantine measures have globally influenced society's pattern of behavior, with an emphasis on isolation and digitalization. During this period, there has been a complete reset of society in all spheres of life. In the context of the global confrontation with the pandemic, it is especially difficult to imagine a world without international dialogue and cooperation to achieve a common goal. Therefore, the role and ways of organizing international cooperation have also begun to change. In the twenty-first century, modern information and communication resources and tools are actively used for networking, with the help of the Internet. For example, the Council of European Municipalities and Regions (CEMR) has created a website where a city or region can find a twin or a partner.

The spread of COVID-19 has made significant changes in the work of state and local authorities, enterprises, institutions and organizations. Although all meetings and discussions have gone online, an active dialogue has been launched with partner cities on the exchange of information on the spread of the pandemic and effective mechanisms to overcome its consequences. Establishment of city partnerships and twinning ties is an effective mechanism in building civilized relations between states. Implementation of mutually beneficial programs and projects will contribute to the development of socio-economic condition of the city and the region. Implementing international and foreign economic relations, local governments become an important factor in the successful implementation of foreign policy and contribute to the fulfillment of state functions in the sphere of international politics. During the quarantine, the sphere of international cooperation has gained positive experience with new forms of work, an active dialogue with representatives of partner cities, rapid solution of assigned tasks and transfer of conferences, meetings and even festivals to the online mode. Virtual conferences help maintain communication between the partner cities and are an alternative to face-to-face meetings.

The pandemic has had a significant impact on ecommerce, giving it a significant advantage over offline commerce. The global nature of COVID-19 and its impact on e-commerce can strengthen international cooperation, further develop online procurement, and supply chain policies. The pandemic has shown that e-commerce can be an important tool, support small businesses, and be a cost-effective engine for both domestic growth and international trade. Social distance and significant limitations illuminated the importance of digital technology in general around the world. This was also noted in a briefing note by the WTO Secretariat on how the COVID-19 pandemic has affected e-commerce and the resulting impact on cross-border trade. This paper notes, among other things, the increasing use of e-commerce in the context of how consumers are adapting to measures of exclusion and social distance, moreover drawing attention to a range of challenges, among them the need to bridge the digital divide within and between nations.

Presentation of basic material of the research

The COVID-19 pandemic has exposed serious flaws and vulnerabilities in societies, institutions, and economies around the world. Totally every country and agriculture has tested its effects and is now going through a so-called transitional period of its theoretical comprehension and practical damage limitation.

Complete lack of training and initial poor coordination of the response between levels of government to this unpredictable but unexpected global health crisis were common to all countries. However, a number of features between different regions in the EU countries are evident and require more detailed analysis, which allows us to make certain predictions about their further "economic condition. All this leads to a new economic crisis, labor shortages, and further economic collapse of the economy.

In our opinion, one of the main factors that led to this situation was the recent granting of greater autonomy to certain regions, which increased inequality in the quality of services. Accordingly, the first task was a thorough reorganization of the health care infrastructure, where many units were repurposed to provide services exclusively for COVID-19 emergencies, while others continued to provide primary care. In addition, territorial health systems were unprepared:

- insufficient supply of personal protective equipment;

- insufficient discussion and coordination with health authorities, departments and agencies;

- lack of diagnostic tests.

As a result, most of the pandemic losses will not be recoverable, even in the medium term, and developing countries, which have a high incidence of COVID-19 with low health care potential, are strongly integrated into global value chains and dependent on investment.

Having inflicted serious social and economic consequences in all European countries, by the end of 2021 more than 700,000 people in European countries had lost their lives, with an infection rate of about 20 million people. Quarantine restrictions, disrupted supply chains and reduced demand led to a significant reduction in real GDP (about 60% by the end of 2021) [1]. In all European countries, governments introduced fiscal packages to support households and businesses and save jobs.

In addition, EU member states are increasingly feeling the need for solidarity and unity in the fight against SOVID- 19, which dramatically reinforces the values of consolidation policy. Despite disagreements among EU member states regarding employment, unemployment, economic growth, social and monetary stability, the emergence of Euroskepticism, multiculturalism, and other "stumbling blocks," consolidation policy has no alternative. In any case, the contradictions that exist within the EU fully fit into the calls to maintain the prospects of a new level of integration based on consolidation policy.

A serious challenge for further transformations and qualitative changes in the EU consolidation policy is the COVID-19 pandemic, which in modern conditions tests not only the quality of medical care and the responsiveness of local authorities in the regions, but also the awareness of solidarity among the population of member states in the fight against coronavirus. The results of a survey initiated by the European Parliament show that only 34 percent of respondents agree on this issue, but the proportion of those with a similar position ranges from 59 percent in Ireland to 16 percent in Italy. Among respondents familiar with the content of measures taken by the EU to counter the pandemic, about half (52%) remain dissatisfied compared to another category of respondents (42%) who are positive about such measures. The highest levels of satisfaction are in Ireland, Finland, the Netherlands, Denmark, and Italy, Spain, and Greece [2].

It is also noted that about 63% of respondents consider it necessary to strengthen cooperation between the EU member states, 18% - emphasize its excessive nature at this stage of European integration.

Thus, the conditions of the pandemic have partially refocused the EU consolidation policy on the fight against the coronavirus through numerous projects throughout Europe. In particular, we are talking about:

- deploying mobile hospitals in the regions most affected by the virus;

- establishing capabilities for rapid testing and producing personal protective equipment;

- developing the capacity of medical research centers;

- support for the health care system and businesses;

- information campaigns for the population on methods to combat COVID-19;

- developing the capacity of educational institutions for distance learning, etc.

The diversity of these initiatives, inherent in the EU's consolidation policy during the pandemic, points to a multidisciplinary approach to its implementation and determines the capacity for rapid adaptation and necessary transformation.

Another consequence is that many local and regional governments have faced enormous challenges in maintaining appropriate levels of health and care. Researchers observe quite significant differences in mortality rates between regions, which depended not only on the circulation of the virus, but also on the health care infrastructure, the availability of equipment and personnel, and the age structure of the population. Areas with more polluted air and vulnerable populations were more affected by the pandemic.

To combat the pandemic, EU member states imposed lockdowns and other restrictive measures, with significant economic and social consequences (albeit differentiated) throughout the EU. The regions that suffered the most socially and economically for the longest period were those where harsh measures were applied. Moreover, these are not necessarily those with the highest mortality rates or the most detected cases, they rely on economic sectors that have been hit hard by restrictive measures (tourism, the cultural industry), or are characterized by economic structures that are based on small and medium businesses and self-employed persons or are heavily dependent on international trade.

With the onset of the COVID-19 pandemic, the European Union faced significant challenges in both spreading the disease and choosing preventive measures to combat the disease, and especially in finding the best ways to deal with the economic and social consequences and ensure the restoration of well-functioning livelihoods and business.

However, under COVID-19, the thematic content of the vital issues for the selection of a particular regional funding project will become stronger and more specific in targeted weaker regions. At the same time, the institutions of the European Union for better consolidation will identify individually for the eligible regions the functional planes, the improvement of which can significantly improve the scores of weak regions on such pillars of the Regional Competitiveness Index as "Health System", "Infrastructure", "Efficiency of the Labor Market", etc.

An important aspect of responding to the situation remains the need to preserve the system of regional competitiveness and to avoid losing the effects of economic convergence. The EU Regional Competitiveness Index is based on the methodological division of European regions into one of three groups - factor-oriented, efficiency-oriented, or innovation-oriented. [3,4].

Ukraine is at a relatively similar level to other countries with the highest number of COVID-19 cases in terms of the strength of government influence on the socio-economic aspects of society in the regions in counteracting the spread of coronavirus. Job losses as a direct parameter reflecting the level of business activity in the country, and having experienced a complete lockdown in the spring of 2020, the domestic economy has suffered huge losses (as of September 2020, Ukraine's GDP had fallen by 7% since the beginning of the year). In addition to the national crisis, we also have a problem associated with the uneven regional development of Ukraine, as most regions and regional centers of the country were in a state of structural deformation, which is primarily reflected in sharp changes in the spread of COVID-19. In order to formulate recommendations to address the socioeconomic situation in the country today, it is necessary to focus on the regional context of the pandemic and identify the weaknesses of each region.

Thus, at this stage of the spread of COVID-19 it is safe to say that this epidemic has a significant impact on the innovative development of the Ukrainian economy, as a new financial and economic crisis becomes evident in the context of globalization and market economy, which can be used to move to a new economy. Technological structure, which combines agricultural, space, engineering, chemical potential of Ukraine with its production, agricultural and managerial potential. Examples of reinfection by coronavirus indicate a significant duration of the epidemic, since patients do not develop a stable antibody system, so the vaccine development process will be difficult and the scenario of a quick end to the epidemic is unlikely, indicating the need for a change in economics.

Of all the industries, travel, transportation and manufacturing are the most adversely affected by the coronavirus pandemic, most pronounced in almost all selected areas. Given that the manufacturing sector in Ukraine is one of the biggest contributors to the country's GDP, it is obvious that it is crucial to the macroeconomic performance of the country as a whole. Manufacturing is the second largest type of economic activity in actual prices, forming the gross domestic product of the country. Despite all the obstacles arising in the logistics supply chains of domestic producers, restrictive measures, lowering of productivity indicators, etc., we see a tangible impact of recent events on the activities of production entities [1].

The new challenges of the post-pandemic COVID-19 world require the creation of conditions and opportunities for successful competition of national economies in postglobalization conditions (crises of the world trade regime, trade wars, protectionist policies, etc.). That is, we must talk about a new pragmatic state course, which in Ukraine can be implemented through the following areas of development (Table 1).

Table 1 Development strategy of the country in post globalization environment

Note: compiled on the basis of the source [5]

In the border regions, which include rural settlements, the consequences of the COVID-19 pandemic will encourage the development of new areas of human activity, such as the construction of processing industries, the development of green tourism, holding appropriate sports competitions, etc., which has important socio-economic significance for the rural population. For example, green tourism is a convenient way for residents of villages and small towns to start their own business and earn money by increasing the range of tourist services for those who wish, the number of which should increase due to the reduction of outbound tourists due to the effects of epidemics in different countries [6].

In addition, you need to focus your efforts on concentrated sales of products or services to a small segment of your customers. When a small business occupies firmly an appropriate niche, creates a constant projected profit and achieves a certain recognition among its narrow target audience, then it can increase the volume of production or create a new variety of its product or service, aimed at expanding its target audience by means of differentiated (when the range of goods or services offered expands) or undifferentiated (when the volume of goods or services produced increases) marketing [7 p. 191].

When implementing the state anti-crisis policy aimed at overcoming the negative socio-economic consequences of the spread of COVID-19, it is advisable to use a sectoral approach, which provides for the development of measures of socio-economic and financial support of individual sectors and institutional units. Households, small and medium-sized businesses, and the financial sector of the economy are currently the most vulnerable to economic shocks and a wide range of government regulation and stimulus tools should be applied to them.

In addition, the COVID-19 crisis had a strong negative impact on innovation in regional development in Ukraine. In the past, pandemics were followed by long periods of reduced investment in innovation. As with past economic downturns, such as the 2009 global financial crisis, spending on R&D and other innovative activities is likely to decline in 2020.

However, the impact of the crisis on innovation will depend on renewal strategies as well as business and innovation policies and practices. The past crises have affected different industries and countries in different ways, and in some cases, the level of innovation activity has increased. Today, it is possible again. Indeed, the pandemic has already been a catalyst for innovation, especially in the health sector, where unprecedented investments are being made in the development of vaccines and other covid treatments and diagnostics.

Thanks to the continuous digitalization of the ICT (information and communications technology) and software sectors, the rate of return and R&D growth are likely to be maintained. In the face of the pursuit of the development of effective treatments, pharmaceutical and biotechnology companies are also likely to grow steadily in the current environment. The same prognosis can be made for the alternative energy sector.

world economics coronavirus government

Conclusions

To summarize, important indicators of the situation of the world economies, in particular of the leading coronavirus countries, have been analyzed to understand the overall situation, focusing on such indicators as the degree of government influence on the socio-economic aspects of society, the measure of economic influence, the rate of job losses. Despite the fact that in Ukraine this sector is one of the largest GDP generating industries, problems in the activities of business entities in this area are extremely undesirable. To characterize the attitude of companies in this sector to the events caused by the coronavirus and the challenges they faced, the results of an official survey of business representatives in the manufacturing sector were taken into account.

Consequently, in the near future, the EU countries and Ukraine, in particular, should conduct common innovation activities in the direction of responses to a certain breakdown of modern world economic patterns. Countries are forced to change their economic and social systems in order to facilitate their development. Today businessmen must not only understand the modern essence of business, but also feel the processes taking place in the world (so the worldwide epidemic COVID-19 launched the processes of a certain deglobalization) - mass social attitudes, trends of modern fashion, etc. They are based mainly on the principles of high creativity, the ability to work competently with information, courage in decision-making, the desire to go beyond adaptability. This is especially true of small and mediumsized businesses, which "covered" the consumer services market during the pandemic and came largely to a halt during the quarantine. That is, in the context of the crisis of the world trade regime, trade wars, a significant return of countries to the policy of protectionism for Ukraine there are opportunities to improve the competitiveness of the national economy.

References

1. European Centre for Disease Prevention and Control An agency of the European Union (2021) Data on the daily number of new reported COVID-19 cases and deaths by EU/EEA country.

2. European Parliament, Uncertainty/EU/Hope public opinion in times of Covid-19 (2020).

3. European Commission, Cofmancing rate. Glossary. (2020)

4. Kolodziejski M., Haase D. (2018). EU cohesion policy 2021-2027 - EC proposals at a glance. Research, Committees (electronic journal), випуск (vol.), номер (no.), сторінки (pp.).

5. Illiashenko N.S. (ed.) (2020) Upravlinnia stratehiiamy vyperedzhaiuchoho innovatsiinoho rozvytku, [Management of strategies of advanced innovative development], Sumy: Trytoriia.

6. Tielietov O.S., Chykalova A.S. (2016) Marketynhovo-innovatsiini perspektyvy rozvytku silskoho zelenoho turyzmu v rehionakh Ukrainy, [Marketing and innovation prospects for the development of rural green tourism in the regions of Ukraine] Mekhanizm rehuliuvannia ekonomiky, pp.106-117.

7. Tielietov O.S., Hryhorenko V.O. (2018) Brend- menedzhment u marketynhu pidpryiemstv maloho biznesu, [Brand management in the marketing of small businesses] Reinzhynirynh biznes-protsesiv marketynhovoi sfery promyslovykh pidpryiemstv, Sumy: SNAU, pp. 184-192. (in Ukrainian).

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