By Miguel Angel Ayala Barajas
Last Saturday 14 and Monday 16 March, news of the suspension of school work in the country and in Michoacán was disseminated, the next day several municipalities of the Entity joined such measures; almost all of the country will be suspending school and public work between 17 and 20 March. The expectation is that they will be suspended almost a month due to the planned holiday period of holy week, resuming on Monday, April 20, as a providence in the face of the expected increase of COVID-19 cases in our country, seeking that the same are the minors.
The absence of an economic plan: before, during and after COVID-19.
Suddenly, the measures seem fully correct and necessary as public health and general well-being are put first; however, in the facts and considerations of public decision-makers, there is a lack of a plan to accompany the economic activities of production, distribution and consumption of products and services; because it is more than clear that the advertised shares create uncertainty both in entrepreneurs who offer goods and services, and in the families that consume them.
It is note-called that about 3 weeks ago the first economic effects of COVID-19 began to be felt in several countries around the world, the economic impact in different countries was diverse, but for countries like Mexico it left a number of teachings that were simply scorned and continued to be scorned. It seems that the simple invitation not to make purchases of panic and insist on productive activities take its course, has left much to be desired to the public and has generated even more uncertainty.
While it is true that measures can be summed up in applying “the healthy distance”, the truth is that, however simple they seem in economic terms, greater concern and swiration has been generated. At least at this stage of the suspension measures implemented, it is really urgent (to mention a measure), a campaign to disseminate, that generates trust for families, that reports that the supply of products is assured and that in the worst case the movement of goods will be guaranteed; likewise, a campaign to disseminate entrepreneurs, which guarantees market access for the sale of their products and continuity in the market for the purchase of the supplies; it should be noted that they are campaigns that do not cost as they can be done with the same means of government.
The absence of the aforementioned measure, like many others well integrated into an Economic Accompaniment Plan, which, including stimulus from fiscal to financial, with a specific public budget, will contribute too much to the economic tranquility of families and entrepreneurs.
State decisions accentuate uncertainty
It should be noted that certain State governments the day after the federal announcement, decided to advance some days the school and administrative recess indicated, in fact, the Government of Michoacán made it after two days. Such a decision deepens public concern and exacerbated the economic scouns of consumers and entrepreneurs; the signal seems to indicate that progress in the State provides conditions that are more unfavourable to those of the rest of the country; while it is true that it does as a preventive health measure, the economic ignorance of the state government team and even more so, of decision-makers in the specific case of the suspension of school and administrative work is recorded.
Like the Federal Government, the State Government does not have an Accompanying Economic Plan, in fact, the position of the Secretary of State Public Security is worrying, stating that in purchases on Sunday 15 March, a day before the announcement of the Governor, they did not have a specific operation to provide security to entrepreneurs and consumers, since there was no specific position of the State Government until that day. I would not be surprised if the policy implemented by the State Government is at the expense of the actions defined by the Federal Government, as well as in almost all the sub-national economic policy in Michoacán, where it is at the expense of what is defined by the Federal Government.
Finally, the situation before us only exhibits, even more, the lack of professionals in the economy who contribute to government decisions, shows the lack of sensitivity of the highest levels of the Federal Government, but above all of the the first levels of the State Government to collaborate and assist in the search for plural decisions and for the benefit of all.
*The author is an Economist, master in administration and currently holds a PhD in Administrative Sciences. In addition, he has published scientific articles and has been a speaker at international events on issues related to public finances and applied economics.
The opinions expressed in the columns are the sole responsibility of those who subscribe to them and do not necessarily represent the thought or editorial line of Monitor Expresso
