Lockdowns due to Covid-19 have led to business bankruptcies, particularly in the micro-business sector, to the reduction of salaries and high levels of unemployment. In addition, in several countries, they have resulted in a degree of social distress leading to anti-lockdown movements that have stirred anti-government sentiments, IMD business School at Lausanne, Switzerland has reported. IMD is one of the top five business schools in the world.

In many countries, it has become evident that their health system is unprepared for the challenges that have emerged from the crisis. In the long-term, such trends will increase inequality levels in some regions of the world, the IMD said.

Observers have pointed out that in some countries or regions such as southern Italy, where the economy has been struggling in recent years, the pandemic has opened the door for fringe groups to act as coping channels for people facing further economic struggles resulting from the pandemic.

Elsewhere, in Palermo, Southern Itlay for instance, members of the mafia have reportedly provided food in poor neighbourhoods.

Similarly, in Japan, the Yakuza distributed free supplies to members of the general public in an attempt to improve their reputation. In Mexico, drug cartels delivered groceries to low-income families to diminish the impact of Covid, the business school said in a report.

Related Topics