Green Supply Chain Management Post-COVID-19 Pandemic

Introduction

As years go by, there is an expectation that technology will continue to innovate, that the climate will improve and that lives across the globe will get better. There are times where there are major setbacks, such as in the year 2020 with the arrival of a global pandemic, COVID-19. At the end of 2019, China was the first to hit with this virus (Eroğlu, 2020). Many were unaware of the severity of it or how quickly it would spread. It quickly turned into a truly global pandemic where it is highly contagious and can be contracted by anyone. The coronavirus disease 2019 (COVID-19) outbreak was declared a public health emergency of international concern by the World Health Organization (WHO) on 30 January 2020 when all 34 regions of China had cases of infection, and the total case count surpassed that for the severe acute respiratory syndrome (SARS) of 2003 (BBC News, 2020). None of the nations were prepared for this unfortunate event. There is now a major health crisis in which only so much can be done for it to be mitigated. Everywhere one can look there are faces with masks on and people maintaining a six-feet distance from most, which is a requirement in most institutions. COVID-19 brought with it many deaths and many health issues. This has also greatly impacted the economies across the world, regardless of their status of being a developed or underdeveloped nation.

COVID-19 has adversely impacted sustainable economic development and has severely affected the global economy and financial markets. There have been significant reductions in income, a rise in unemployment, and disruptions in the transportation, service, and manufacturing industries are among the consequences of the disease. Now different countries are taking mitigation measures to minimize the impact of this pandemic, but one thing become clear that none of the governments and global healthcare systems were prepared to deal with such a tragic event. The entire world underestimated the risks of rapid COVID-19 spread and were mostly reactive in their crisis response. As disease outbreaks are not likely to disappear soon, proactive international actions are required to not only save lives but also protect economic prosperity. Significant economic impact has already occurred across the globe due to reduced productivity, loss of life, business closures, trade disruption, and decimation of the tourism industry. COVID-19 may be that “wake-up” call for global leaders to intensify cooperation on epidemic preparedness and provide the necessary financing for international collective action. There has been ample information on the expected economic and health costs of infectious disease outbreaks, but the world has failed to adequately invest in preventive and preparedness measures to mitigate the risks of large epidemic.

COVID-19 has hit this world with devastating effect and developing countries were hit particularly hard. Before COVID-19, the UN has called for coordinated action from the world’s leading economies toward 17 Sustainable Development Goals (SDGs) and maximum financial and technical support for the poorest and most vulnerable people and countries (Barbier & Burgess, 2020). As Figure 1 indicates, the pandemic is likely to adversely impact 12 of the 17 SDG goals. This will occur at a critical juncture for some of the sustainable economic goals when 736 million people still live-in extreme poverty, 821 million are undernourished, 785 million people lack even basic drinking water services, and 673 million still practice open defecation. About 3 billion people lack clean cooking fuels and technology, and of the 840 million people without electricity, 87% live in rural areas (Barbier & Burgess, 2020).

Another major impact was the fact that COVID-19 had hit China first, a major player in the economic sphere. In a strongly connected and integrated world, the impacts of the disease go beyond those who have died and those who may be unable to work due being high-risk and it has become apparent since the outbreak. Since the Chinese economy has slowed down with interruptions to production, “the functioning of global supply chains has been disrupted. Companies across the world, irrespective of size and geographical location, that are dependent upon inputs from China have started experiencing contractions in production. Transport being limited and even restricted among countries has further slowed global economic activities. Most importantly, some panic among consumers and firms has distorted usual consumption patterns and created market anomalies. Global financial markets have also been responsive to the changes and global stock indices have plunged” (Barbier & Burgess, 2020).