1998- 2013: Chavez presidency

In 1922, oil was discovered in Maracaibo basin of western Venezuela, considered to be the world’s largest oil reserve. The then dictator allowed more than 100 foreign companies into Venezuela to extract the reserves and by 1928; the country became the world’s second-biggest petroleum exporter. The nation’s economic development was based on rising prices and profits in oil reserves. But in the 1980s, as the world was facing the worst oil crisis, the global oil prices fell and the Venezuelan economy collapsed; the country faced a massive foreign debt of 33 billion dollars. Ultimately, it was forced to accept an International Monetary Fund Bailout and impose austerity measures that resulted in sharp rises in the price of consumer goods and fares for public transport.    

In 1998, Hugo Chavez was elected as the president of the country and he promised to use the country’s oil wealth to improve the lives of the poor. He expanded the social services and spent huge amounts on social programs such as education, health care, food and housing problems, at one point, even provided free heating oil for impoverished Americans.  Though Hugo wanted to diversify the Venezuelan economy, his expensive strategy only increased the dependency upon the exported oil.  As corruption was still rampant, a steady decline in the oil production reduced oil reserves and increased the government debt.  To deal with the dire economy, Hugo introduced a lot of economic reforms such as currency devaluation and price controls but nothing was effective. He also declared an economic war due to the increasing shortages in the country. In 2013, after ruling for 14 years Hugo died of cancer at the age of 58, his chosen successor vice president Nicolas Maduro narrowly won the elections and became the president.

2013- 2020: Maduro presidency

After the demise of Chavez, elections were held and Maduro won the elections with a 1.5% margin. With inflation at more than 50% a year, the national assembly gave Maduro emergency powers for a year. Still, by 2014, the country had entered an economic recession and by 2016, the country had an inflation rate of 800%, the highest in its history. The healthcare system lacked funding, once-eradicated diseases like cholera and malaria returned causing the death of thousands of children due to hunger and malnutrition. The rate of unemployment increased at an alarming rate and the prices of goods rose to an unexpected level causing a situation of hyperinflation in the country.                                              

In 2017, Maduro’s government created a new legislative body, which gave him the right to pass laws and he disavowed the National Assembly in 2017 leading to the 2017 Venezuelan constitutional crisis. Following the constitutional crisis and the push to ban opposition presidential candidate Henrique Capriles from politics for 15 years, protests grew to their most combative since they began in 2014. The government failed to handle the matter in a peaceful manner and started oppressing the mobs by using violence, which led to the death of about 6000 civilians by the special action forces.

With these ongoing social and economic crises, in 2018, Maduro won the presidency again in a low-turnout election that was seen by many countries as fraudulent because of low participation by opposition parties.                                                  

Soon after the elections, to tackle the situation of hyperinflation, the government slashed five zeroes from the face value of its old currency and tied the new “sovereign bolivar” to a cryptocurrency that can’t be traded.  Despite various economic reforms by the government, nothing has helped the country’s economy to recover. Years of this economic and political instability in Venezuela have caused the largest population outflow in Latin America in recent years; about 5 million Venezuelans have left the country seeking food, work, and a better life since 2014.                                                       

In 2019, the opposition leader and head of the National Assembly, Juan Guido declared himself to be interim president according to the constitution. He is recognized as such by the U.S., Canada, and Venezuela’s Latin American neighbours.

In 2020, as the coronavirus pandemic spread in Latin America, border closings and the collapse of global oil prices have made life even harder for the Venezuelans.  Child malnutrition has reached crisis levels in Venezuela, reports the U.N. children’s agency. The country’s GDP (Gross domestic product) has dropped by 25% in 2019 which is the largest since the Libyan Civil War began in 2014. The inflation rate has reached 10,000,000% making it almost impossible for people to afford even the basic services like food for their survival.  The country is facing the worst economic and social crisis of all time with the high level of corruption, increasing poverty, no food and water, no proper healthcare system, increasing mortality rate, massive housing shortage, increasing crimes and illegal detentions, increasing unemployment, increasing hyperinflation and sinking of the oil reserves. 

Conclusion

The country which was once considered as the richest in Latin America, due to the largest oil reserves in the world, is now facing the worst economic crisis in the history of the world. It is marked by hyperinflation, escalating starvation, increasing unemployment and a shortage of a proper healthcare system which has led to increased malnutrition and mortality rate. Due to the declining oil reserves and poor governance along with high corruption the economy of the country collapsed.  The country is in a very dire situation with people lacking even the basic needs for survival.  Various countries such as China and Russia are sending aids for the Venezuelan crisis; Russia sent tons of food and medical supplies in Venezuela in February 2020. The European Commission (EC) is the largest donor to organizations working inside Venezuela in 2018, according to the database. It has been sending humanitarian aid to Venezuela since 2016. The EC focuses on projects to improve access to food and nutrition, water, hygiene and sanitation for people in Venezuela.  The United States and regional partners should also provide humanitarian relief and security assistance and accelerate change to a post-Maduro democracy.  As Venezuela is floundering, these humanitarian aids by countries come as the only hope that the country, which was once considered as one of the richest countries of the world, can still overcome its crisis and improve the economic, political and social situation of the country. 

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Current Economic Inequality

While economic growth has certainly been witnessed in the region, the growth has been worryingly unequal. Recently, with the growth of digitalisation and improvements in technology, while productivity has increased, there has been a trend to favour capital over labour. This has contributed to income equality, which is exacerbated by another trend of favouring skilled labour over unskilled labour. Most ASEAN countries are currently stuck in a middle-income trap. 

The data from ASEAN countries is surprising – they all score highly on the Gini Index, which is used to measure economic inequality. Among all ASEAN countries, Thailand scores the worst. According to the Bank of Thailand’s research institute – the Puey Ungphakorn Institute for Economic Research – Thailand’s 36 per cent of corporate equity is held by just 500 people, while they have a population of about 69,625,582 people. The average yearly household income of these people is around US$10,000. But in stark contrast to this meagre amount, the aforementioned 500 reap around 3.1 billion baht (US$102 million) per year in company profits. 

Economic Inequality and Political Instability

Economic inequality can lead to political turmoil and therefore threaten the peace and security of the region. Unmet expectations can lead to a lead to a dissatisfied voters’ base. Such a voters’ base is likely to vote for populist governments or cause civil unrest. Rattana Lao, lead author of a study by the Asia Foundation called Thailand’s Inequality: Myths and Reality of Isan said that “Research has shown that one of the leading indicators that pushed people toward political turmoil and protest is the fact that they are not satisfied with their economic condition and the uneven treatment that they receive.”

A crucial realisation that fails to be accounted for in most discussions surrounding economic inequality is that regional disparities also constitute as a worry. Specifically, when talking about political instability, people from poorer regions rely more on government supports and can have unrealistic expectations from their governments. These people are more likely to be engaged in politics and hence can determine voting outcomes. The dissatisfaction of electors can turn into a series of protests, as witnessed in the case of the Arab Spring. 

Thomas I. Parks, the Country Representative for Thailand at The Asia Foundation writes in regard to the aforementioned report, “The challenge now for Thai leaders is to find the best mix of programs and policies and stick to them. In the coming years, the government must carefully monitor and evaluate the results of its policies and programs, and the lessons learned, and then make adjustments whenever needed.” Regional disparities and the level of income inequality has to dictate policies if governments want to avoid civil unrest. 

Economic Inequality and Hindrance to Trade

Unfortunately, income inequality goes beyond political instability. Persistent-income inequality can significantly impede growth and weaken demand, therefore affecting trade and ASEAN’s goal of economic integration. Believers of trickle-down economics are proven wrong if we look at the experience of ASEAN countries. According to the International Monetary Fund, if the income share of the top 20 per cent increases by 1 per cent, we witness an associated 0.08 percentage point decrease in Gross Domestic Product (GDP) growth in the next 5 years.

There is a clear correlation between economic equality and sustainable economic growth. Policy measures need to strive for equal access to resources and opportunities, otherwise, we may witness some sort of economic growth, but it will only be limited and unsustainable. Economic development, which is what countries should strive for, includes sustainable growth – and it is only possible when there is an overall economic upliftment of everyone in society.

Moreover, ASEAN’s goal of promoting trade in the region is affected when we look at the driving factors of income inequality. Factors that have been identified as contributors include globalisation and warped fiscal policies of governments. For example, Multinational Companies (MNCs) do not pay proper taxes which helps them retain profits but also indirectly takes away crucial funding from government schemes, and therefore this help never reaches the poor. Organisation for Economic Co-operation and Development’s Chief Economist, Laurence Boone said: “At the global level, we must ensure that firms pay their fair share of taxes to create value and employ people.” On the one hand, it is impossible to reject globalisation due to the adverse damage it would do to trade, but on the other hand, it is crucial to make sure the benefits of globalisation are reaped by everyone. Similarly, fiscal policies of countries cannot seek to just remove income inequality – they need to be in line with ASEAN’s policies of economic integration (and therefore, globalisation). In these aspects, ASEAN needs to make sure that it’s member countries remain in tune with its agenda, while at the same time make sure that income inequality is eradicated. 

Conclusion

Both the main objectives of ASEAN are put in jeopardy with the context on economic inequality. In fact, having one objective threatened also affects the other – for example, political instability also disincentivizes people to invest and drives down economic growth. Similarly, slow trade and economic growth leads to resentment amongst the people, and therefore political instability. Ultimately a dangerous cycle can form.

Political instability reduces the likelihood of proper collaboration on an effective economic agenda and trade policies. Frequent regime changes and different leaders might essentially make ASEAN’s goal of proper and effective economic integration difficult to achieve. This, in turn, will lead to poor economic policies, followed by low and unsustainable growth fuelling economic inequality. Economic inequality and hindered trade by creating dissatisfaction amongst citizens will again lead to continued political instability and fragmentation.

In order to make sure that officials’ capacity to implement proper trade policies is not undermined, it becomes crucial to recognise the real-life impact of income inequality and understand the disastrous affects it can have on just numbers and figures of growth, but in lifting people’s social class and living standard. ASEAN’s objective of a better region is threatened by the security risks that economic inequality poses. For example, the recent coronavirus pandemic also disproportionately will affect the poor. In situations such as these, economic equality and consequently equitable access to resources (healthcare, information, a steady source of income etc.) becomes a priority. Poverty and economic gaps don’t just make it tougher for people on the lower end to recover, it also makes every situation tougher for a nation to escape from, and therefore also makes it tougher for a regional entity such as ASEAN. 

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In India, four months have passed since the initial nationwide lockdown implemented by the Government of India on 25th March 2020 and now preparation for Unlock 2.0 is beginning, with relaxed restrictions barring a few services such as of Cinema halls, theatres, bars, educational institutes, swimming pools, and other similar services.

Amidst the new policies announced and regulations updated, the role of women, and the economic impact on them is undervalued at an unprecedented rate in India. In a recent policy brief on ‘The Impact of COVID-19 on Women’ by the United Nations on 9^th April 2020, it was stated that “Women will be the hardest hit by this pandemic but they will also be the backbone of recovery in communities.” 

The threat of the pandemic worsening the pre-existing gender inequalities is rising, with a risk of erasing the limited gains of women liberation made in the past few decades in India and worldwide. It is widely known the abysmal manner in which the center handled the migrant labour situations, but often the cases of women migrant labours are overlooked in the broader term of this case.

Women’s Position in Coronavirus

Unpaid care work has increased for women, within households, and informal care jobs. Established gender norms have added responsibilities to women performing the majority of the household chores and care work, and sadly these are not paid and invisible in the economic sense of nature. Women perform 9.6 times more unpaid care work than men, according to a report by the International Labour Organization.

Teachers and nurses are underpaid in the formal care sectors, and even though educational institutes are closed, some teachers still have to go to school for administrative purposes. Sanya Bannerjee, a preschool teacher in a well-reputed school in Vadodara, Gujarat is a single mother of an 8-year-old son. She recounts her experience, “We teachers don’t have to go to school every day, maybe twice or thrice a week. I have to leave my son with the neighbors as the school crèche is closed. I cannot avoid my work as it is my only source of income now. Earlier, I used to take tuitions, but that has stopped since March. I am worried about the health of my son, but I have to go to work for both of us.”

Around the world, women earn less than men and are more likely to be employed in the informal sector, especially in south-Asian countries. With reduced social security and entrenched gender norms, their ability to absorb economic shocks is less than that of men. The pandemic and the economic crisis in India has created a detrimental atmosphere for the single-parent household.

Deepali a domestic helper from Khar, Mumbai says, “I haven’t worked for three months. Out of four houses, only one house paid my salary all these months. In the beginning of the year, I had got a job for washing dishes. But you know, these rich people get to know everything first, and they made some absurd reason and asked me not to come to work in the middle of February. Now I cannot go looking for jobs. Many societies here have rules not to allow people like us to enter because we come from Jhopar-Patti areas. It has been very difficult for me to make ends meet. I am desperately in need of work.” Deepali worked in houses in Santa Cruz and Bandra. She adds that once she was given 3kg of dal and rice from an NGO, but now Deepali and her daughter survives on rice water and boiled vegetables.

According to a recent article on the New York Times, it was reported that female labour participation decreased to 21% from 32% from the year 2005 to 2018 in the country. Women are at a much higher risk of losing their existing jobs and the lack of employment opportunities is said to make it tougher for Indian women to re-enter professional workspace.

Women and girls perform three times more unpaid care and domestic work than men. In the informal sector, they have limited access to social protection and paid sick leaves. While this invisible economy has a positive impact on the formal economy, it has a much greater negative impact on women’s lives.

The mental strain on women worrying about their job security is causing major anxiety-related mental health issues. Due to a low or negligible support system, they are truly in a vulnerable position. The social distancing rules have induced an undesirable effect of a safety norm since it has created a greater physical divide for women to reach out for help. Lack of a support system and negligible safety nets has created a catastrophic environment for women like Deepali and Sanya. 

The discussion of the drawbacks of policies by the government in this period of the pandemic in gender-neutral terms has downplayed the economic impact on women’s lives.  The national media and prominent political figures often wash away the unique issues and situations faced by women due to the systemic social disadvantage. It is imperative to address challenges faced by women and form policies keeping their needs at the center of it.

Conclusion:

A major economic recession announced by the International Monetary Fund, and it is deemed to be unique than any previous global recession. This likelihood will bring challenges to the vulnerable and weaker members of our society, especially women. The progress in women empowerment over the years is likely to be erased in these difficult times as women are burdened with more unpaid care work, domestic labour and gender pay gaps. Women are distanced from NGOs and other organizations for help in current times, which is likely the cause of the rise of domestic violence. Policies should be formed, taking the sensitive issues faced by women, as they have comparatively weaker social safety nets.

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Since then, the world news has been dominated by the rapid spread and far-reaching impacts of COVID-19. However, the pandemic is much more than a global health crisis. The novel Coronavirus has the potential to create crippling and devastating social, economic and political effects on each of the country it touches and leave deep and long-enduring scars. 

MULTIFACETED CHALLENGES IMPOSED BY COVID-19

Creating a monumental challenge on the public healthcare system, the pandemic brought turmoil on the global market, livelihood, trade, economies, different institutions and the like and integrating all, affecting human life. 

The lockdowns confined millions of citizens to their houses shut down, businesses left large groups of migrant workers jobless and homeless and ceased almost all economic activities. Consequently, the recent days witnessed the sharpest economic pullback and a huge spike in unemployment all across the globe. According to the International Monetary Fund (IMF), the global economy is expected to shrink by over 3 per cent in 2020 – the steepest slowdown since the Great Depression of the 1930s. This global economic downturn, coupled with the financial crisis, is bound to have a negative impact on the behavioural and mental health of the society. 

Quite a few start-ups came to a temporary or permanent halt and the organisations that could operate had to identify and overcome several challenges for ensuring business continuity. One such challenge was quickly adapting to the work culture change and instigating remote working practices that reflected this new environment in order to maintain business continuity. With this shift in working cultures, people not only lost a routine and structured daily schedule, but also social interactions with the wide variety of supportive, friendly, casual relationships at work and in public that make for a rich social texture. Moreover, middle-aged working individuals experienced greater levels of stress due to overlapping family and work responsibilities. These factors compounded with the responsibilities they have towards their children and/or ageing parents as caregivers might have triggered feelings of despair, frustration and loneliness. 

With the shutting down of schools and playgrounds, lack of outdoor activity, aberrant eating and sleeping habits, children have also been exposed to great psychological sufferings because of COVID-19. Although children have been largely spared from the direct health effects of COVID-19, the crisis is having a profound effect on their mental well-being, their social development, their safety, their privacy, their economic security, and most importantly, their education. This disruption of lifestyle has given rise to feelings of distress, monotony, impatience, annoyance and various other neuropsychological manifestations. There is an even greater threat of domestic violence and child abuse now. The children from marginalized communities are particularly susceptible to the infection and may suffer from extended ill-consequences of this pandemic, such as child labour, child trafficking, child marriage, sexual exploitation and death.

Campus closings and the overall response to the Coronavirus fundamentally brought a shift in how college students think about their sense of belonging. In addition to depression and loneliness, college students were also likely to face increased rates of anxiety, fuelled by the uncertainties surrounding the virus. 

The elderly, however, face special challenges because of this pandemic and constitute an especially vulnerable group. Firstly, their age is a predisposing factor to mental and physical health issues and the presence of comorbid conditions make them even more susceptible to infections and accompanying mental distress. The elderly are always advised for maintaining social interactions for their mental and emotional wellbeing, but this has seen a drastic disruption because of the current situational demands of social distancing. Nowadays, not visiting ageing relatives, with the intention of not exposing them to the virus, has become a symbol of love. Thus, the lack of social interactions can precipitate and worsen anxiety, loneliness, feelings of being a burden on their children and various other psychological issues. Thirdly, the lockdowns have aggravated the issues of access to basic medications and healthcare facilities which the elderly face owing to their physical health problems. If they are unable to obtain a sustained supply of medication, they are bound to experience deterioration in their mental state. The constant streaming of news related to the pandemic may become a source of their stress and anxiety because most news outlets highlight the increased mortality rates of COVID-19 in older people. Thus, the regular exposure to such disturbing information can trigger episodes of anxiety, depressive moods and eating and sleeping disturbances. This, in turn, can have a detrimental effect on their quality of life.

Besides these age-related problems, the collateral damage of COVID-19 has been suffered by relationships. These times have witnessed a tsunami of divorces, the dating scene is on its knees and thousands of couples have consulted therapists after months of staying indoors together during the lockdown. All of this has triggered feelings of isolation, loneliness, anxiety and depression. 

Thus, with the spread of COVID-19, the world has been witnessing and experiencing the parallel spread of anxiety, worry, stress and frustration because of the instability and ambiguity of the current situation. Having little idea about what the post COVID scenario looks like and experiencing a lack of control has been a major stressor in recent times. Indeed, in a crisis like this, our mental state seems to deteriorate and it becomes very essential for each one of us to learn ways of staying mentally healthy and be able to cope with the surrounding negativity and stress. 

RESILIENCE: THE KEY TO OVERCOME HARDSHIPS

Remaining calm at a time when we are all in high alert due to COVID-19 can be a challenging task and people exhibit varied responses to the outbreak.  However, during these challenging times, building psychological resilience is vital for the ability to cope effectively with hardship, uncertainty, and change. The ability to withstand setbacks, adapt positively, and bounce back from adversity is described as “resilience” (Luthar and Cicchetti, 2001). Very simply explained, mental resilience means managing our minds in a way that increases our ability to face the situation and prevent psychological distress from affecting our daily functioning. Resilience is the skill which starts with noticing our own thoughts, then unhooking them from the non-constructive ones, and rebalancing quickly. This is a skill that can be built internally, nurtured and trained. 

In research by Marin Seligman, the former president of the American Psychological Association (APA) and the father of the positive psychology movement, seven habits of the happiest people had been identified – 

1. Relationships— Consistent with all the other happiness research, relationships are absolutely vital to a sense of joy and meaning in life. This is why regularly investing in, and carefully working on close relationships is very important, especially during such uncertain times. Connecting with close ones over a phone call or social media can help reduce stress and depressive moods. 

The present climate of fear can also create stigmas and judgments about who is to be avoided or who is to be kept at a distance. Thus, forming and maintaining compassionate, meaningful bonds and relationships has become even more important. 

2. Kindness— Seligman found that people, who volunteer or regularly care for others, are happier and less depressed than other people. Not surprisingly, research shows that giving and receiving kindness can protect one from disease, and may even help the person live longer. 

In the COVID times, where people are translating social distancing into physical distancing and mistreating people affected by the virus, little acts of kindness can not only help others but the society overall. 

3. Physical Exercise— Exercise and a good diet are primary factors for lifting depression. Keeping the body healthy by moving every day is a basic building block of happiness and can also act as a form of healthy engagement during these times. 

4. Purpose, meaning, and spirituality— Studies demonstrate a close link between spiritual practices and happiness. Spiritual thinking can also help people cultivate hope, compassion, and self-reflection. Spiritual engagement can also keep one’s mind off the surrounding negativity and help the person stay calm and relaxed. 

5. Identify and use greatest strengths— People who identify what they are great at and try to do more of it every day—are much happier. Developing strengths and concentrating on positive qualities can also boost mental wellbeing. 

6. Gratitude, mindfulness and hope— Happy people focus on what they have, not on what they don’t have and live in the present as much as possible. Hope has been linked to a better immune system and less chronic disease. How we explain bad events to ourselves also plays a large role in how we move forward. These attributes are deeply linked to happiness, and they are skills that can be learnt, practised and deliberately cultivated. 

7. Flow States— A fascinating work of Mihaly Csikszentmihalyi, “flow” activities are those in which people become so engrossed and absorbed in that space and time seem to not exist. Research shows that people are happier when they regularly engage in “flow” activities. These are activities that people simply enjoy doing voluntarily. They are moderately challenging, but not so challenging that they produce stress. 

With the gift of time, we have received due to COVID-19, we can rediscover our long-lost talents and spend productive time behind cultivating them.

This calm and present state is crucial. It helps keep the mind from wandering and getting hooked, and it prevents us from being susceptible to stress and worry. Moreover, taking some time off from work and family commitments and engaging in self-care and introspection can help us think clearly. More importantly, the continued practice of calming our minds builds a muscle of resilience. When we practice bringing ourselves back to the present moment, we deepen our capacity to cope and weather all sorts of crises, whether global or personal. 

Resonating well with Seligman’s research, a recent study by Killgore, W. D. S., Taylor, E. C., Cloonan, S. A., and Dailey, N. S. (2020) on Psychological resilience during the COVID-19 lockdown proved that social support from family, friends, and a special caring loved one were each independently associated with greater resilience and during periods of shelter-in-place orders, it is important to foster these relationships and to find creative ways to stay emotionally connected with those we care about. Their research also highlighted the importance of daily activities. Exposure to the outdoors and sunlight for a few minutes each day and getting a bit more exercise were both also associated with greater resilience. Finally, spiritual health was another facet of well-being to consider, as more frequent prayer was independently associated with greater resilience. It was thus found that those who actively engaged in these vital activities and nurtured their relationships tended to be the most resilient to the challenges to mental health imposed by the COVID-19 pandemic. 

In addition to these, World Health Organization (WHO) also published a document on “mental health and psychosocial considerations during the COVID-19 outbreak” which addressed age-specific concerns and highlighted similar points related to building resilience. The World Health Organization (WHO) and Disease Control and Prevention (CDC) also highlighted the significance of enhancing community resilience to curb the COVID-19 outbreak.

Thus, individuals building internal reliance can definitely contribute to the building of community resilience and create a better situation for all, because the overall resilience of a community rests on the extent to which community members practice healthy lifestyles and are aware of the community’s health-related functional needs. 

CONCLUSION

Looking through the lens of positivity and optimism, one can see a silver lining on the dark COVID cloud. Despite all the obvious hardships, most of the people are learning to adapt well to these challenging circumstances and deal with all the ordeals. We’ve started engaging in healthy habits, connected with long lost friends, rediscovered old talents and understood the value of time. We’ve become more aware of our emotional needs, we’re understanding people better and we’re bonding with each other like never before. It’s true that the current times are uncertain and we have a very hazy idea about what the future looks like, but in spite of all this, humans are known to be resilient beings and this innate human capacity of resilience has always helped us overcome the hard times. After all, when life gives us lemons, we’ve got to make good lemonade and enjoy the drink! 

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