Professional Documents
Culture Documents
Risky Novialdi
Department of International Relation, FISIP, Universitas Almuslim
Dahlawi Maz
Department of Government Studies, FISIP, Universitas Syiah Kuala
Wais Alqarni
Department of Government Studies, FISIP, Universitas Syiah Kuala
Impact of COVID-19 on Economic Activities and Poverty Threats in the Asia-Pacific Region 82
Aceh Province in Paradiplomacy Introduction
Practice,” “The Failure of Providing
Human Security for Rohingya In late 2019, world media highlighted the emergence of a virus
Refugees (Case Study: Escaping
Rohingya Refugees From Shelter In outbreak that infected Wuhan, China. Initially, the virus known as
SKB Bireuen, Aceh Province),” “The
Public Diplomacy of International
COVID-19 had only infected tens of thousands of Chinese citizens;
Communications,” etc. slowly but surely, the virus finally came out of its habitat to spread to
neighbouring countries such as South Korea, Japan, and surrounding
Dahlawi Maz was born in Banda
Aceh on January 1, 1962. He areas. The situation worsened in early 2020 when a virus outbreak
gained his doctoral degree from
Universitas Merdeka Malang.
began to spread with further reach to almost all countries in the
He had a long service in the world, such as Iran, Italy, Spain, Turkey, Russia, the United States,
bureaucratic world and held a
number of important positions and others. The most recent data obtained on May 17, 2020, shows
during that period. During the last
few years, he decided to enter the there have been 4.7 million cases with a mortality rate of 15%.
world of academia by teaching at The United States is the largest country infected with coronavirus
the Faculty of Social and Political
Sciences, Universitas Syiah Kuala, with almost one-third of the total world cases (worldometers.info,
majoring in government studies.
accessed May 17, 2020).
Wais Alqarni was born in Dayah Because of its rapid spread, the World Health Organization
Tanoh, Pidie-Aceh, April 26, 1992. (WHO) has stated that the current crisis is an international health
He is a lecturer at the Government
Studies, Faculty of Social and emergency (Sohrabi et al., 2020); therefore, governments around
Political Sciences, Universitas
Syiah Kuala (Unsyiah). His the world are expected to be able to work to address the spread
research interests are elections and
political parties. Before working at
of this pandemic through a series of local policies, especially
Unsyiah, he worked at the Election Non-Pharmaceutical Intervention (NPI) such as quarantine,
Supervisory Agency (Bawaslu)
of Yogyakarta, as an Assistance border closure, intensive medical research, and provision of social
Team of Bawaslu. He gained his
degrees from Muhammadiyah protection.
University of Yogyakarta (Bachelor) Even so, the commotion of the world community caused
and Universitas Gadjah Mada
(Postgraduate). by the spread of a deadly virus has happened before. “The global
community has experienced many health crises in the past 20 years
Muhammad Achdan Tharis is
a student of international relations caused by a series of new viral infections, namely HIV, Influenza A
at Almuslim University, Bireun.
He is an excellent student who
H1N1 virus subtypes, Influenza A H5N1 virus subtypes, SARS-CoV1,
actively participates in a number of MERS-CoV, and Ebola. However, epidemiological novelty caused
competitions and youth association
activities at regional and national by a coronavirus (SARS-CoV2), reveals our lack of readiness to deal
levels.
with its rapid and sudden spread, that is why many governments in
the world do not have enough time to deal with it” (Djalante et al.,
2020). Experience has shown that several countries have overcome
global health crises, but the magnitude of the COVID-19 pandemic
is believed to be greater than the previous crises due to its global
scale and widespread closure of business, travel, and restrictions on
activities outside the home (Higgins-Desbiolles, 2020). Furthermore,
Li et al. (2020) also shared the idea that this virus has a fast spread
rate compared to other similar viruses. Therefore, this is a very
shocking blow to the governments in the world, because this virus
comes suddenly and is difficult to control.
Not only health, but coronavirus has also been able to
paralyze various state activities, as stated by Karabag (2020) that
this virus has caused a crisis that generates various political and
Impact of COVID-19 on Economic Activities and Poverty Threats in the Asia-Pacific Region 84
can be found in general in various types of to be achieved in the next ten years, namely
literature, such as scientific journals, books, Sustainable Development Goals (SDGs), which
reports, actual news on the internet, and so on. are a reference for the growth and development
The theoretical references obtained through of countries in the world in facing economic,
the study of the literature serve as the basic social, and environmental problems within the
foundation and main analytical tool in research scope of the international community.
practice in this scientific article. Therefore, Finally, what makes the study in this
researchers used Atlas.ti software to help the journal important is finding alternative solutions
data analysis process to make it more efficient and offering appropriate emergency action
and structured. The data collected in the Atlas. in dealing with complex socio-economic
ti software has a special study feature related to threats due to the spread of the COVID-19
the object of this research. pandemic, which is currently sweeping the
The steps taken by the authors in this world, including in the Asia Pacific region.
literature study are as follows: First, collecting However, the emergency policy that the authors
a number of data from various easily accessible offer is still with a good assessment and is in
sources, such as journals, books, reports, and accordance with the local wisdom of countries
the latest news on the internet or online media. in the Asia Pacific region. The goal is that this
Second, the data that has been collected is then policy can be implemented and sustainable as
entered into the Atlas.ti software for in-depth it should be in accordance with the target of
and more systematic analysis. The authors make achieving the SDGs program, which will be
use of the predetermined coding, then the Atlas. realized in 2030, especially after COVID-19 has
ti software will display the data in accordance passed, leaving humankind to live as before.
with the “research objectives,” which are the
focus of this study. Results and Discussion
Third, the results of data processing To analyze the problem in this study, the
from the Atlas.ti software are then analyzed authors have used the emergency management
using the main theory that has been selected (EM) theory. Hoetmer (1991) explained that
in this study. The theory in question is the emergency management is the discipline that
emergency management (EM) theory. EM is applies science, technology, planning, and
an interdisciplinary study that can be linked management to deal with extreme events that
and analyzed with a number of disciplines, can injure or even kill many lives, do serious
including economics, political science, and damage to property, and disrupt community
public administration, which can be practiced lives. Furthermore, McEntire (2005) argued
in policymaking in dealing with emergencies that EM is an interdisciplinary study among
such as the COVID-19 pandemic. Fourth, a other economics, political science, as well as
matter that deserves special attention in this public administration that can be practised in
scientific study is how the governments of the policymaking in response to emergencies; this
countries in the Asia Pacific region are able to includes dealing with a vulnerability that is
face and deal with a number of welfare threats related to poverty and results in an inability to
that will and are being faced by the people in this prevent, prepare for, or recover from a disaster.
region. The study in this research becomes more Thus, it can be said that EM has traditionally
interesting when the data that has been found been a reactive profession, neglecting mitigation
will be linked to the global development agenda and recovery and spending much of its
Impact of COVID-19 on Economic Activities and Poverty Threats in the Asia-Pacific Region 86
as the Malacca Strait, Makassar Strait, Lombok 2020). From this experience, it can be said that
Strait, and Sunda Strait. The Malacca Strait, COVID-19 will weaken the world economy even
which is located between the Malay Peninsula more (Carlsson-Szlezak et al., 2020; Higgins-
(Thailand, Malaysia, Singapore) and Sumatra Desbiolles, 2020; Karabag, 2020). Furthermore,
Island (Indonesia), has an important role in according to the report from OECD (2020),
ongoing international trade, as expressed by world economic growth, which has weakened
Evers and Gerke (2006) that the Malacca Strait since 2019, will be weaker, from 2.9% to 2.4%. So,
can maintain and even improve its position as the world is currently facing massive economic
the most important shipping lane in the world disruption, starting from the slowdown in
- more important than the Panama Strait and 2019 to the chaos of economic structure due to
Gibraltar Strait. Yasin et al. (2019) mention that COVID-19.
the Malacca Strait continues to play its role as Almost all commodity markets have
the most important international waterway, been affected, including oil revenues. China,
evidenced by the fact that the strait has become as the largest importer of oil in the world, has
the second busiest shipping line in the world. experienced a sharp decline because of this
The Malacca Strait also links maritime trade outbreak. Due to the situation, Saudi Arabia,
between Europe and the Asia-Pacific, which has Russia and other oil-producing countries have
brought about 40% of world trade (Zaman et al., promised to cut about 10% of global production
2014). Furthermore, Villar and Hamilton (2017) (Krauss, 2020). Global fears and uncertainties
revealed that “in recent years, between 85% and about the spread of the virus have the potential
90% of the total annual petroleum flow through to change investors’ decisions to invest in China
the Malacca Strait, making the Malacca Strait and in other countries, which in turn reduce oil
the main chokepoint in Asia. The Malacca Strait prices (Arezki and Nguyen, 2020). COVID-19
is also an important transit route for Liquefied also has had an impact on investment because
Natural Gas (LNG) from the Persian Gulf and people are more careful when buying goods
African suppliers to major importing countries or investing, as expressed by Baldwin and Di
in East Asia such as Japan and South Korea.” Mauro (2020) where past crises such as the Great
Therefore, the Malacca Strait in the APR gives Trade Collapse of 2008-09 caused employers and
importance to the circulation of global cargo companies to delay purchasing activities and
along with global economic activities and access investing. Therefore, it is not surprising if the
to the flow of various resources, such as mineral coronavirus affects market projections; investors
and oil resources. could delay investment due to unclear supply
chains or due to changes in market assumptions.
Impact on Economic Activities and Employment As a result of the spread of the coronavirus,
In analyzing possible losses due to the China has minimized and even stopped
coronavirus pandemic, we can refer to past importing and exporting goods from inside
world losses, for example, the impact caused and outside the country and vice versa, so that
by the SARS virus in 2002. At the beginning many countries in the world are experiencing
of the 21st century, this virus caused the global barriers to raw materials for production needs.
economy to lose about $40 billion in 2003; this Fernandes (2020) stated that the spread of the
happened even when China, as the fifth largest coronavirus resulted in a decrease in production
economy in the world, contributed 4% of global in China, whereas China is the centre of world
gross domestic product (GDP) (Carvalho, goods production. Furthermore, the closure of
Impact of COVID-19 on Economic Activities and Poverty Threats in the Asia-Pacific Region 88
209 million), India (around 176 million), and many things will change for the better, such
Pakistan (around 168 million). This means that as economic development, including tourism,
the number of business units engaged in the field which will become more sustainable (Gössling,
of Hajj and Umrah in the APR, such as travel Scott and Hall, 2020; Kozul-Wright & Barbosa,
agencies, airlines, lodging, visas, and souvenir 2020). Simply stated, sustainable tourism is
shops, must experience a drastic turnover. For seen as a normative orientation that seeks to
example, the loss experienced by Indonesia, steer community systems and behaviour on a
“according to calculations, the potential loss of broad and integrated path towards sustainable
is up to 1.6 to 6 trillion IDR, if it runs for one year development (Bramwell et al., 2017). Even
then the potential loss can reach 19.2 trillion to though sustainable tourism is not a new
72 trillion IDR. This calculation is just the Umrah discourse because this pathway has been
and does not include the Hajj” (Savithri, 2020). discussed since three decades ago (Mihalic,
Bokhari (2018) explained that the annual 2016; Bramwell et al., 2017; Higgins-Desbiolles,
pilgrimage of Muslims to Saudi Arabia to 2018), it seems that COVID-19 is the momentum
perform Hajj and Umrah had played an to generate this old intention.
increasingly vital role in economic growth
and development. Moreover, in a business Threat of Poverty
perspective, Hajj and Umrah trips are businesses Besides being known as a region that has
engaged in worship that produce three incomes, rapid economic growth, the Asia-Pacific Region
namely material income, social income and (APR) still has a lot to do in terms of reducing
spiritual income (Andar, Unti and Dedi, 2019). extreme poverty; this is explained by Banerjee
Therefore, the contributions made by these and Ng (2019), “Although praised globally for its
religious activities benefit many countries, fast economic growth over the past few decades
as well as the individuals and private sector and has raised 1.1 billion people out of extreme
involved. However, the temporary ban on poverty since 1990, the Asia-Pacific continues
Umrah is the right decision considering the mass to have the largest number of poor people in
gathering is an effective medium of transmission the world.” And sure enough, the long efforts
from an infectious disease such as COVID-19. that have been taken by the countries in the
This has been proven by several previous region to reduce poverty have been tested, as the
studies where religious mass gatherings such COVID-19 pandemic has the potential to give
as Hajj and Umrah are activities that have birth to a new number of poor people.
the potential to facilitate the transmission of The non-pharmaceutical intervention
infectious diseases (Yezli et al., 2016; Koul et al., (NPI) taken by the government to fight the
2017; Almutairi et al., 2018; Niu and Xu, 2019). COVID-19 outbreak has caused considerable
So, Hajj and Umrah activities are not only a job losses. Capital owners are forced to activate
matter of the global economy but also closely the layoff option due to the impasse of economic
related to global health. activity because they are unable to provide a
Apart from the negative impact caused salary to their employees. According to Goshu
by COVID-19, it turns out that there are et al. (2020), the contraction in sales and business
groups who look at the current situation as income and the negative growth of household
transformative moments or opportunities that income and expenditure has resulted in various
can change the world (Davies, 2020; Higgins- economic consequences, including large job
Desbiolles, 2020; Mair, 2020). Furthermore, losses and the adverse welfare impacts of the
Impact of COVID-19 on Economic Activities and Poverty Threats in the Asia-Pacific Region 90
protection as an instrument in eradicating of a minimum limit to help those in need. Zakat
poverty. According to Hidrobo et al. (2018), in has a role in providing social protection by
the past 20 years, social protection has emerged protecting people who are vulnerable to risk
as an additional policy tool to overcome (Ibrahim and Ghazali, 2014; Hassanain and Saaid,
poverty and hunger in developing countries. 2016). The strength of Zakat funding sources is
Furthermore, social protection policies play very strong. Shaikh (2016) found that the ratio of
an important role in realizing human rights to Zakat to GDP in some countries has exceeded the
social security for all groups, reducing poverty Poverty Gap Index to GDP (PGI-GDP) and the
and inequality, and promoting inclusive growth Poverty HeadCount Ratio to GDP (PHCR-GDP).
by increasing human capital productivity Therefore, based on its objectives and benefits,
and structural transformation of the national Zakat, which is believed to have a sustainable
economy (ILO, 2014). Responding to COVID-19, source of funds, seems to be an alternative source
the World Bank (2020) in its report stated that of funding for social protection (Rassanjani, 2018).
about 106 countries had introduced social This is also in line with what was conveyed by
protection programs in response to COVID-19; Ariyani (2016) who said that Zakat is not only
this number had increased by 26% (previously a means to improve the welfare of the poor, but
84 countries). Here it can be seen how the it has also developed as a practical mechanism
government is swift in addressing the impacts for managing social-economic inequality in
caused by COVID-19, although it still relies on any society. The government must now build
social protection as a policy solution. a strong collaboration with outsiders such as
For countries with a large GDP per capita, religious organizations, as required in the SDGs
certainly realizing social protection is not a ‘Goal 17 Partnerships for the Goal,’ that building
complicated problem. Meanwhile, for low GDP partnerships is pivotal in promoting sustainable
countries, it is certainly burdensome, given that development.
their GDP has declined due to slowing economic The complexity of COVID-19 as a
activity. At the same time, they are required to new threat needs more attention in public
budget their income for handling COVID-19, administration studies, especially public policy.
such as the provision of better health facilities, A number of government policy packages
social protection for affected communities, and in restoring the economy and in preventing
so forth. Clearly the defiance, as explained by the rise of new poor groups must be pursued
Harris (2013), as an effective social protection even in an emergency situation; thus, decision-
system has long been seen as a luxury that making models such as rational, bureaucratic,
is difficult to reach by many developing and incremental, and so on must be absorbed into
low-income countries. Therefore, a sustainable emergency management theory to explain
source of funding is needed, outside of state organizational dynamics and policymaking.
revenues, foreign loans or debt. Moreover, a policy certainly experiences
As explained in the previous section, nearly dynamics in the formulation process due to
three-quarters of the world’s Muslim population political aspects. McEntire (2005) argued that the
lives in Asia-Pacific. Luckily for a Muslim-majority political obstacles faced in the field and creative
country, there is a long tradition of providing ways to overcome them must be incorporated
social welfare to underprivileged people through a into the emergency management theory.
collection of Zakat, which is a religious obligation Furthermore, the emergence of vulnerability
for all Muslims who have wealth on the verge due to the pandemic is closely related to
Impact of COVID-19 on Economic Activities and Poverty Threats in the Asia-Pacific Region 92
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