It comes as no surprise that the recent COVID-19 pandemic has affected not only our health but also our way of life and financial stability. Companies everywhere have experienced the pandemic as a grim reminder of the fact that their own health and well-being ultimately depends on those of their employees. With extreme poverty around the world expected to rise in 2020, both policy-makers and companies are forced to come up with new solutions for what is now a healthcare and economic crisis. While some are betting on conventional ideas, others have already started to use technology to boost economic recovery.
A Cause for Concern
While the COVID-19 pandemic is sure to be the main issue we face in 2021, financial security for both individuals and businesses around the world is also important. According to the World Bank Group estimates for 2020, extreme poverty may well have increased around the world for the first time in over 20 years. Experts link this trend to the disruption caused by the COVID-19 pandemic and warn that as many as 150 million people may be driven into extreme poverty this year as a consequence.
“In order to reverse this serious setback to development progress and poverty reduction, countries will need to prepare for a different economy post-COVID, by allowing capital, labor, skills, and innovation to move into new businesses and sectors. World Bank Group support—across IBRD, IDA, IFC, and MIGA—will help developing countries resume growth and respond to the health, social, and economic impacts of COVID-19 as they work toward a sustainable and inclusive recovery,” said World Bank Group President David Malpass. While policy-makers may use these and similar solutions, companies around the world have also turned to technology in hope of developing more integrated solutions.
Can Technology Drive Economic Recovery?
David Malpass is not alone in thinking innovation may be one way of reversing the economic effects of the COVID-19 pandemic. According to the World Economic Forum, technology and digital innovation can both play an important role in creating a sustainable economic recovery. After all, technology is important for most industries, from manufacturing and logistics, to renewable energy, transport, and healthcare. Maybe even more important is the role played by technology in fighting the current pandemic, as well as future ones, and in updating healthcare standards around the world. According to Roland Busch, CEO and Member of the Managing Board, Siemens AG, “healthy economies depend on healthy populations.”
Roland Busch also observes that, while some companies may focus strictly on fighting the negative effects of the pandemics, others see this healthcare and economic crisis as the perfect time to start using technology to build clean economies. According to Busch, companies, and people everywhere still depend on fossil fuels, and the transition to clean economies is probably one of the biggest tests and hopes of the decade. He added that many companies like Siemens are currently working to develop efficient solutions to decarbonize the transport sector.
Industrial Impact and Solutions
The COVID-19 pandemic has disrupted industries and companies around the world, but, while most companies faced this impact, some were more affected than others. The aviation, automotive, and tourism industries are among those bearing the brunt of the onslaught. The sudden drop in demand for passenger air transport and travel has created numerous problems in the aviation industry, with companies struggling to survive and many jobs on the line. However, companies like United Airlines are also turning to technology as a way of improving their earnings and surviving the impact of the pandemic.
United is not alone in betting on technology for recovery, given that American and JetBlue have already joined the race. While United improved its mobile platform to provide better accessibility and developed chatbots for providing contactless information about COVID-19 protocols, American turned to DevOps for better IT delivery. Technological advancements come with costs that many are not prepared to pay, especially during a crisis, but they may also be the best way to fight this crisis. For United, a company that canceled $56 million worth of capital projects last year, the bet is well-worth making.
The COVID-19 pandemic has left us with many important lessons about the future, and one of them is the fact that technology plays an important role in healthcare. Companies around the world were also left to discover that living and working in the digital age calls for continuous digital innovation. But technology can also be used to pass another milestone: to help companies around the world build a clean economy for a better future. After all, our global economy may depend on our health, but our health certainly depends on our environment. This may be the best time to use technology to transform environment protection.
