Are you Ready for Insta 75 Days Revision Plan (UPSC Prelims - 2020)?
Topic: Important aspects of governance, transparency and accountability, e-governance- applications, models, successes, limitations, and potential. Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.
5. Economic policies can bridge the gap between the brutal downturn and eventual recovery due to COVID19. Deliberate. (250 words)
Reference: Indian Express
Why this question:
Minus 40 per cent, -30 per cent, -22 per cent, and -14 per cent are the estimated impacts (at an annualized rate) on the quarterly growth rates of China, the UK, Eurozone, and the US because of the Covid-19 virus. Thus the context of the question.
Key demand of the question:
The question expects us to explain the role of economy in addressing the downturn caused by the outbreak.
Deliberate – Weigh up to what extent something is true. Persuade the reader of your argument by citing relevant research but also remember to point out any flaws and counter- arguments as well. Conclude by stating clearly how far you agree with the original proposition.
Structure of the answer:
Briefly discuss the current case, substantiate with necessary facts and data.
Explain that Economic policy needs to “bridge the gap” between the downturn and the eventual recovery.
Discuss the key role that economic policies across the countries must play – While public health policies force a sudden stop in the economy to save lives, economic policies need to ensure that the impact from the shutdown is cushioned, incomes of households and firms supported, credit stress is contained, and the recovery is not hamstrung by policy headwinds.
Discuss how these above factors need policy support.
Discuss the issues associated.
Conclude with way forward.