ADB reports delayed economic recovery and the emerging field of happiness [1]
Friday, September 18, 2020 - 13:50
By Pesi Fonua
The Tongan economy has been struggling to recover from the impact of two severely destructive cyclones, Gita in 2018 and Harold in 2020, followed by a long-term border closure, and extended CoVid-19 restrictions. Economic outlooks are so depressing in the region, that policy makers now need to consider mental and physical wellness alongside economic recovery planning.
Tonga is one of the few countries in the world that has not been invaded by SARS-CoV-2 (COVID-19), and in a continuing response to the pandemic, the government on Monday 14 September announced an extension of our State of Emergency for another six months from 12 September 2020 until 12 March 2021.
According to the September Asian Development Outlook 2020 Update, “the travel bans continue to have disproportionate effects on economies in the South Pacific, all of which rely heavily on international mobility. In the Cook Islands, Niue, and Samoa, the collapse of inbound tourism continues to suppress economic performance despite significant government stimulus, while remittances, mainly from outbound seasonal workers, are more important for Tonga.”
The update stated that the recent COVID-19 outbreaks in Auckland and Melbourne “will delay economic recovery and the return of easy travel, with significant consequences in the South Pacific.”
In Tonga repeated and overlapping economic shocks have contracted the economy in 2020, and the bad news is that there's worse to come.
For Tonga, “Long delays until reopening of travel are now deemed likely to undermine both tourism and seasonal labor programs well into 2021, shrinking the economy in Fiscal Year 2021 by nearly triple the FY2020 rate.”
While rapid grant support from development partners has eased Tonga's struggle, new pandemic-related expenditures are adding to a decline.
“The fiscal deficit, equivalent to 1.4% of its Gross Domestic Product GDP in FY2020, is lower than projected in April due to ample grant support from development partners and a smaller than expected revenue decline. As revenue continues to decline, and pandemic-related expenditure rises, the deficit is projected to widen to 5.5% in FY2021.”
“Tourism and merchandise export earnings are projected to remain weak as long as travel restrictions persist, however, and remittances are likely to drop as seasonal worker programs are disrupted and host economies continue to struggle. Absent offsetting increases in development partner assistance, the FY2021 current account deficit is forecast to double, exceeding the ADO 2020 forecast.”
The report noted that the sustained spread of COVID-19 remains the major risk to economies around the world.
Wellness
With the economic forecasts so depressing it is no surprise that the ADB has sub-titled its report “Wellness in Worrying Times”. With no economic upturn in sight it's time to focus on our mental and physical health.
President of the ADB Masatsugu Asakawa, stated in his foreword: “in these worrying times, maintaining physical and mental health becomes even more essential than usual. We believe wellness is critical for post-pandemic recovery— especially in Asia and the Pacific.”
“Wellness not only maintains happy and productive societies but can be an important driver of growth.
“Wellness policies to boost physical and mental health should be inclusive to benefit the whole spectrum of Asian society. Policies should create healthy living environments, encourage physical activity and healthy diets, and enhance workplace wellness,” he said.
Comparative inactivity in The Pacific is charted, with over 17% of Tonga's population currently having "insufficient physical activity.”
Policies for physical and mental wellness
He urged more public investment in wellness infrastructure such as community recreation centers and green parks in poor neighborhoods, as well as health education campaigns.
ADB defines wellness policies as those “that nudge people to proactively make healthy choices and live healthy lifestyles, while also creating living environments that support and encourage healthy behavior and lifestyles.”
“Yet wellness is poorly understood by governments, which have not incorporated it into policy making as an overarching framework or explicit priority. Nevertheless, wellness brings an important perspective to policy making that is complementary to public health, health policy, and the emerging field of happiness,” states the report.