A New Normal or Business-as-Usual? Lessons for COVID-19 from Financial Crises in East and Southeast Asia

Abstract

Crises and dislocations home in on social, economic, and political weaknesses that are often sidestepped or pushed to the backburner in the interests of master plans of growth or development. Recovery from crises, then, provides the opportunity to address these underlying issues that preceded and, likely, contributed to the crises or dislocation; meanwhile, a return to the previous normalcy following such crises generally means exacerbation of these weaknesses that erode and threaten to fracture social, economic and political foundations. This paper documents social and economic policies across two financial crises, the Asian Financial Crisis and the Global Financial Crisis, for South Korea, the Philippines, and Indonesia, to reveal the problems from growth-centric recovery focus on economic fragilities, social cohesion, and political stability. Further, using evidence from the ground and survey data, we also show how recovery to a new normal with a reprioritization of social policies invigorates the social, political, and economic foundations. We round off the study with an examination of social policy changes under COVID-19 to assess how the efforts track against a recovery to business-as-usual economic normalcy or a new normal that reprioritizes social policies and the economy. The scope of change is high; as we show in the paper, it is also necessary.

Managing the COVID-19 pandemic crisis and changing welfare regimes

“…Whilst governments across Asia have attempted to go back to normal and promote mobility across the region, the unstable public health conditions in their area and their fluctuating number of COVID-19 cases have blocked their attempts to 'normalise' international travels and mobility. The negative social and economic effects of the pandemic have also influenced the social policy strategies adopted across different East and Southeast Asian societies (Yap, 2020).…”

“…A deep global crisis causes not only a global economic downturn but also massive losses of life, and these changes undoubtedly influence the present arrangements of unique welfare regimes across different parts of Asia (Yap, 2020). Further research should then investigate how governments respond to the COVID-19 global health crisis, which has serious impacts on social, economic, political, and geo-political developments (Greer et al, 2020).…”

COVID-19 pandemic’s disruption on university teaching and learning and competence cultivation: Student evaluation of online learning experiences in Hong Kong

“…However, the entire world was shaken by the sudden coronavirus disease 2019 (COVID-19) outbreak in the late 2019, which has significantly disrupted the discourse and practices of student competency cultivation. The COVID-19 pandemic has adversely affected not only the global economy but also the different development aspects, including the education sector at all levels with closures of educational institutions (Altbach & de Wit, 2020; Seker et al., 2020; Yap, 2020). The wide spread of the COVID-19 has undoubtedly changed the education landscape worldwide.…”

Developing Gender-Based Justice Relationships in Indonesian Families During the COVID-19 Pandemic

“…Apart from professional work, they are involved in childcare, work, and housekeeping. Women who work in less organized economic sectors are more likely to lose their jobs and get into financial crises (Yap, 2020).…”

“…Staying at home was no longer safer for many women during social restrictions (lockdowns) due to a surge in domestic violence and intimate partner violence. It is associated with social conditions, job loss, isolation and quarantine at home, and overcrowding of work roles, all of which cause stress and anxiety (Yap, 2020).…”