CUEED: Reimagining Policy Change for Urban Economic Development Amidst Covid-19 - Essay Sample

Introduction

I am writing to the Executive Director of CUEED regarding the need for policy change to suit and adapt to the current state of conducting business activity as a result of Covid-19. The policy change is fervently significant since it will positively impact the entrepreneurs and economic development, which have been affected by the pandemic. As such, it is fundamental to rethink and refurbish the area of urban economic development. The entrepreneurial world is a social enterprise, needing the daily interaction of people. As a result, policies that motivate both the SMEs and young entrepreneurs to establish a visible value for solutions that help solve the current social and environmental thirsts are required urgently.

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Due to the pandemic, a high focus should be on the implementation of place-based policies, which should be majorly shedding light on inclusive development. Amid the COVID-19 pandemic, entrepreneurs face a health crisis that limits their normal business operations. As such, their involvement in business operations is limited, which has led to an unprecedented economic downturn. Quarantines and social distancing are affecting entrepreneurs in that potential consumers are in lockdown measures implemented by the governing bodies of nations. As such, no business operations are undergoing in a majority of countries in the contemporary world. Financial reliefs, however, might be able to help such entrepreneurs absorb the financial shock caused by the pandemic. Besides, only developed countries can offer financial relief to SMEs and urban entrepreneurs. The latter are disadvantaged in underdeveloped countries that have used all their financial resources in fighting the spread of COVID-19.

Currently, enterprises that deal with online shopping, door food delivery, video conferencing, or video gaming industry are thriving. Therefore, to maintain a balance in the economy, an action that aligns with different business settings needs to be put in place to ensure stability in the marketplace. In a bid to emphasize the importance of the policy further, the solutions need to cover across all SDGs and equally reflect on economy practices, so at to ensure the inclusion of the vulnerable entrepreneurs, favoring sustainable consumption. For instance, the Hub network equips over 16,000 entrepreneurs in about 55 countries with an enabling infrastructure to survive through societal issues (The Forum Network, 2020).

As previously mentioned, lockdowns have affected the performance of SMEs and urban entrepreneurs due to a lack of physical operations. As a result, a majority of operations have been put at hold while a significant another left to operate from home. To ensure that the financial shock experienced by these SMEs is little, an online marketing place should be set in place to ensure that people can still view products they want on an online platform. Buying of the products should be ensured provided the condition of goods sold by the online entrepreneurs is good, and that their products are properly sanitized. In doing this, undeveloped countries that do not expect financial reliefs from their governing bodies can still be generating some income, that will help them bounce back to operations once the pandemic is over.

Besides, due to the less money generated as a result of little business operations, many entrepreneurs are forced to work above their levels and financial capability. These traders have to incur additional expenses without receiving enough subsidies from the government. The most common problem threatening the decline of these ventures is rent. Plot owners are demanding rent without considering the economic difficulties experienced by these traders. Therefore, effective and elaborate rent-control policies should be initiated to offer protection during this challenging time. The policies to be implemented regarding rent should also give the entrepreneurs the right to modify and organize the flow plane to suit their needs and regulate security deposits. The latter is supported by "these policies should be effective to ensure that the rent pressure does not push the ventures into failure. Rent controls set limits on how much the landowners should charge the rents during this time" (National Low-Income Housing Coalition, 2019). However, these rental based policies should go through an evaluation before being implemented to avoid negative ramifications emergence. For example, the systems should be equitable and available to everyone, both the wealthy and low-income neighborhoods.

In addition, policy responses need to concentrate on the actual schedule, the provision of health-related measures, and economic aid on all ends of the demand and supply-sides. Both the entrepreneurs and their consumers should be protected from exposure to COVID-19. These measures not only cushion the ventures against health risk but also towards income losses to prevent the occurrence of a durable economic recession. Other policies like those that discourage discrimination and exclusion during this challenging period are essential; for instance, there has been a rise in cases linked to COVID-19 related harassment. According to a report offered by the International Labour Organization, the Ministry of Justice in Japan has established hotlines that primarily serve to report bullies and harassers (2020).

Therefore, all stakeholders and policy formulating bodies working in close relation with the Executive Director of CUEED should acknowledge the importance of the SMEs to the economy. As such, they should do the latter by developing purposeful and intentional methods to ensure they thrive through the new business environment.

References

International Labour Organization. (2020, March 18). COVID-19 and The World of Work: Impact and Policy Responses. ILO Monitor, 15.

National Low-Income Housing Coalition. (2019, April 5). Gentrification and Neighbourhood Revitalization: WHAT'S THE DIFFERENCE? National Low-Income Housing Coalition. https://nlihc.org/resource/gentrification-and-neighborhood-revitalization-whats-difference.

The Forum Network. (2020, May 5). Impact Entrepreneurs: Building solutions for a post-COVID-19 world. The OECD Forum Network. https://www.oecd-forum.org/users/386620-tatiana-glad/posts/65636-impact-entrepreneurs-building-solutions-for-a-post-covid-19-world.