State money and "love capsule"

The big question is when the post-pandemic period will begin. But it will be remembered which states were able to stand by their citizens under these difficult conditions? Which countries kept their citizens at a distance? Which countries were able to help their citizens and businesses the most?

We really have difficult days. Our burden is not only related to the weight on our shoulders but also related to the worries of tomorrow. The coronavirus stopped the lives of all people in the world for almost 1.5 years. Of the world's 7.3 billion people, 3.8 billion stayed home. Contacts were cut off. Social integration has been replaced by isolation. No one thought about luxury goods and services except the necessary consumer products. Even the social class living in the comfort zone acted on the principle of "a steel tongue makes a wise head". Protecting one's existence and not getting sick were almost considered heroic.

Yesterday, the PACE session adopted a resolution on overcoming the socio-economic crisis caused by the COVID-19 pandemic. [1] The resolution said that the COVID-19 pandemic had caused countless casualties and tensions in the country's national health systems and socio-economic structures. The document calls on member states to provide the population with a sufficient minimum income and full social protection.

The scope of funding for the coronavirus support program in Azerbaijan is often discussed. The 3-year report of the Ministry of Labor and Social Protection of Population [2] states that in connection with the pandemic, financial assistance in the amount of 610 million manats was provided to support employment and social welfare.

It does not seem plausible that the coverage of these events will cover 5 million people. According to the State Statistical Committee, 5.2 million out of 10 million people in the country are able-bodied. 1.7 million of them are salaried employees. 1.3 million people are pensioners. 2.6 million people are children. Given that the number of people living abroad is about 2-3 million, it is not clear how assistance was provided to 5 million people.

However, taking into account the assistance provided to businesses through the Ministry of Economy, it turns out that this amount is much higher. According to Azerbaijan's report to international organizations, total public support programs during the pandemic amounted to 2.1% of GDP. This is one of the lowest rates of support for the people in the world during the COVID-19 period.

The International Monetary Fund [3] has developed a geographical classification of its support to the peoples of the world.

However, there are countries that lead this table. Leading countries are Luxembourg and the United States. Luxembourg has implemented support programs at 27 percent of GDP and the United States at 25 percent. New Zealand should not be forgotten too. New Zealand is at one of the top places on the list with 19 percent of GDP.

Economics is not just a science of saving. The timing of spending money on the economy and creating heat must be chosen correctly. It is political irresponsibility for the state to scatter money into the economy with helicopters for populism. Funding unnecessary projects (sports and music competitions) is a waste of public funds. But the lack of a "Salvation Package" to prevent the real danger means facing the unimaginable dangers of the coronavirus.

If states do not help their people, then they are considered to have forgotten the "parental" care for society. What will happen if this assistance is not provided? If we think the opposite, or if we know that the future has come according to negative scenarios: hospitals are full, doctors who go to work refuse to serve, and so on. Then the state gets flurried and spends more money but that money is not a cure for any wound. We need to know this: Medication that is not given to the patient in time does not heal the wound! Because the state must have the money and will to spend in time, as well as a "love capsule" for the nation!

Mammed Talibli

Sources:

[1] https://tia.az/aspa-uzv-olkeleri-ehalini-gelir-ve-sosial-mudafie-ile-temin-etmeye-cagirdi/

[2]  Ministry of Labor and Social Protection  of Population of the Republic of Azerbaijan, https://www.sosial.gov.az/uc-illik-hesabat

[3]  IMF, Report