COVID-19 has caused an unprecedented crisis; entire regions have been sealed off, according to Artem Genkin, expert in the theory of money and financial innovation, doctor of economical sciences, professor and President of the Center of Protection of Bank Clients and Investors autonomous non-profit organization, who spoke during a Zoom conference, The World After the Pandemic, organized by the Invest Foresight business magazine as part of the Engineering the Future Club project.
The speaker noted that it is impossible to model current events as all models are approximate. Copying other countries’ methods to solve the problem will not bring any results.
Artem Genkin stressed that over the past 25 years, the World Health Organization has accumulated large amounts of data about cholera, Ebola and other dangerous outbreaks. However, there is no other example of a microorganism exacting such a huge economic toll on not just one specific region but the entire world. The key question now is what will happen to the world economy next, when the epidemic is over.
The expert pointed out that the coronavirus-inflicted economic crisis is unprecedented. It extends to the transport and logistics industries as entire regions and provinces have become isolated.
He added that there are numerous “blood clots,” or supply channels, essential for the global economy. Production of soybeans in Argentina is one example.
“There is a town in Central Argentina that is surrounded by an area producing huge volumes of this product. As you know, Argentina is one of the world leaders in soybean production. Now let’s imagine that the mayors of nearby cities decided to block roads and ban entry and exit for trucks. As a result, the supply of this product has significantly slowed down. There are plenty of “blood clots” like this in the world along the delivery channels of essential products. And the supply problems may become critical for the global economy,” Artem Genkin concluded.