Navigating the ‘new normals’ for socio-economic recovery from COVID-19

UNDP in Sri Lanka together with Resident Coordinator’s Office and UNICEF convene high-level round table 

• UNDP in Sri Lanka together with Resident Coordinator’s Office and UNICEF convene high-level round table

COVID-19 is a global pandemic that has affected many countries. It has infected over 2.6 million people and resulted in over 180,000 deaths as of 23 April 2020. In Sri Lanka, since the diagnosis of its first patient in late January, by mid-April 2020, a total of 330 confirmed patients and seven deaths have been reported.

Understandably the priority has been to manage the health emergency and cognisance must be stronger on the knock-on impacts globally, regionally and nationally which will threaten a follow-on national, socio-economic crisis. 

The Government has announced various stimulus/relief measures. However, a comprehensive analysis on the ‘new normals’ is needed to understand the socioeconomic impacts and recovery needs of the crisis. This will help design a ‘whole of society’ road map for recovery which would strengthen national development planning institutions, and leverage youth entrepreneurs to formulate innovative solutions to help rebuild the economy.

To better understand how Sri Lanka can navigate these ‘new normals’, the United Nations Development Programme (UNDP) convened a high-level virtual dialogue in collaboration with the Resident Coordinator’s Office of the United Nations and the United Nations Children’s Fund (UNICEF) in Sri Lanka. 

Speaking at the opening of the dialogue, Resident Representative of UNDP in Sri Lanka Robert Juhkam stated: “Post-COVID-19 is not about building ‘back’ better. It is about building ‘forward’ with more innovation at the forefront of our work”. 

In line with this, Resident Coordinator of the United Nations in Sri Lanka Hanaa Singer emphasised the importance of social protection by “making macroeconomic policies work for the vulnerable”, thereby stressing the significance of “innovative financing”. 

Also speaking at the opening session, Central Bank Governor Prof. W.D. Lakshman welcomed today’s discussion and stated, “During the crisis, using all available resources, the Government has worked very hard to contain the virus – more so than most affected countries. This Dialogue is indeed very welcome which is the first step to convening several stakeholders to design holistic solutions.”

Drawing attention to the concept of ‘new normals’ Deputy Resident Representative of UNDP in Sri Lanka Faiza Effendi stated that the pandemic was “demonstrating to us the emergence of a ‘new normal’ and is forcing us to look at a new social contract which will focus on reaching the most vulnerable”.

Emphasising the need for a more digital approach, Ceylon Chamber of Commerce Chief Economist Shiran Fernando urged the private sector to look at ways to fully digitise operations. “Once we get through this recovery phase of COVID-19, we shouldn’t go back to business as usual. We must be able to embrace the new normal.”

Going into this ‘new normal’ however, requires all businesses to adapt to the new environment. As PickMe Food Head of Operations Mevan Peiris stated: “We need to reinvent business processes and labour mobility is key.” 

In a context where many are forced to work from home, those in the informal sectors are economically hit the worst. As Country Director of the International Labour Organization for Sri Lanka and the Maldives Simrin Singh stated: “81% of the workforce globally has been affected due to COVID-19 - women workers in particular.  We need to design solutions that keep the payroll going.” 

This also makes more families vulnerable and draws them deeper into poverty. “This can have a huge impact on children. Therefore, we must come up with social protection schemes that are strategic and inclusive,” highlighted Representative of UNICEF in Sri Lanka Tim Sutton. 

Sarvodaya General Secretary Dr. Vinya Ariyaratne echoed this by calling for solutions that have a whole of society approach.

The crisis is also expected to have significant impact on the country’s SDG pathways, with the crisis pushing Sri Lanka into a lower trajectory. Helping Sri Lanka avoid ‘backsliding’ in terms of SDGs is a key challenge. As Asian Development Bank Social Sector Economist Brian Chin stated, “We need to use big data to better understand the impacts of COVID-19 and the extent of its impact.”

Facilitating the discussion around the need to have a whole of society approach, Global Compact Network Ceylon Chairman Dilhan Fernando stated: “Peacebuilding, food security and inequality – these are key issues that we need to look at. Understanding the significance of the agriculture sector of Sri Lanka is essential and not to mention the lives involved. They have always been on the frontlines of issues due to climate change, and now they will confront more issues in a post COVID-19 context. If you look at the short term, what can the private sector do? We need to start by mobilising goodwill. The private sector has a key role to play in inspiring young people; demonstration of leadership at every level is needed at this point.” 

The dialogue saw the participation of several leading actors both in the public sector and the private sector including Dialog Axiata PLC, Dilmah, Global Compact, Hayleys, Hemas, Pickme, Unilever and Virtusa; fellow colleagues from World Bank, ADB, IFC and IMF; think tanks and academics from the Institute of Policy Studies (IPS), Munasinghe Institute of Development, University of Colombo and the Centre for Poverty Analysis (CEPA); civil society organisations such as Sarvodaya and representatives from other bodies from the Sri Lanka Retailers Association, Employers Federation and Ceylon Chamber of Commerce.