Sunday, June 21, 2020

How Iceland Beat the Pandemic Without Imposing a Lockdown

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Article Contributor(s)

Nikhita Gautam

Article Title

How Iceland Beat the Pandemic Without Imposing a Lockdown

Publisher

Global Views 360

Publication Date

June 21, 2020

URL

Downtown Reykjavik, Iceland

Downtown Reykjavik, Iceland | Source: Robingileo via Wikimedia

Like the rest of the world, Iceland also has to face the COVID-19 situation. This European country of approximately 3.5 lakh population registered the first case of COVID-19 virus on the 1st March 2020 and the number of the infected hit a peak on the 5th May 2020. The active cases declining afterwards and on 24th of May there were only three active cases. Iceland’s response to COVID-19 has been widely lauded.

The country’s small population enabled extensive testing; instead of simply testing symptomatic or exposed people, also tested the general population. Along with the Icelandic health authorities, deCode Genetics, which is an organization committed to mapping and understanding the human genome, undertook the task of testing the general and non-symptomatic population for free. Consequently, Iceland has tested a higher portion of inhabitants than any other country, making it easier to trace how the infection spreads. There has been no lockdown imposed; however, the government has been taking measures to spread awareness for voluntary self-quarantine measures. The government also banned gatherings of more than 20 people on 24th of March which was relaxed to 200 from 25th of May.

The strategy followed by the government of Iceland was based on robust testing, contact tracing of infections, social distancing, increasing public’s awareness of hand-sanitation and voluntary self-quarantine, along with strict measures in healthcare institutions. Through effective contact tracing the healthcare workers were able to reach out to people who came in contact with COVID-19 infected people and recommend them to self-quarantine.

The government was very open in communicating with the citizens on the status of COVID-19 situation in the country. Half an hour long daily briefing on Iceland’s local response to the pandemic was relayed on the public’s screens for the past months until the 25th of May. The briefings were led by Þórólfur Guðnason, Alma Möller and Víðir Reynisson who are the Chief Epidemiologist, Director of Health and Director of Iceland’s Department of Civil Protection and Emergency Management respectively.

Iceland has shown that robust testing regime, contact tracing, and clear communication to the public can be very effective in controlling the COVID-19 before it could turn into a pandemic.

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February 4, 2021 4:48 PM

Kenyans turning to mobile loans in times of COVID-19

The economic impact of COVID-19 is felt on the personal finance of people across the world who are looking for ways to tide over the situation. In Kenya, people are lapping the short-term credit in the form of digital loans by mobile money operators. The number of people taking digital loans has doubled during the COVId-19 induced lockdown period.

Boston Consulting Group's Consumer Sentiments Survey conducted in April and May 2020 reported that "In May, 29 percent responded that they had taken out a short-term loan, compared to 16 percent in April. Mobile money operators were the most common sources of this credit”

Kenya is a pioneer in using mobile money transfer services as the key tool for providing financial inclusion to its citizens. A simple money transfer service, M-PESA launched in 2007 has transformed the financial service industry in Kenya. Today mobile money operators are providing multiple services like digital loans, marketplace for small businesses and farmers.

Digital loans are easy to process and disbursed but there are concerns of shaming the defaulters and compromising the data security of clients. The Digital Lenders Association of Kenya (DLAK) which is a body representing the digital lenders of Kenya has distanced from two of their members, Okash and Opesa over unethical practices. These mobile apps have shared the details of defaulting customers with the moneylenders and asking them to recover the money.

DLAK also stated that Opesa and Okash are known for attacking a client's data privacy which is against the Kenyan data protection laws and has additionally spoiled the reputation of digital leaders in Kenya.

In April 2020, Central Bank of Kenya barred unregulated digital mobile lenders from forwarding the names of loan defaulters to credit reference bureaus. A huge number of Kenyans have been recorded on Credit Reference Bureaus by digital money lenders for loans as little as $5.

Central Bank of Kenya governor Patrick Njoroge told during a press conference in May 2020 that the central bank in consultation with the mobile money operators and digital lenders is presently working to develop a model where the borrowers are protected from mistreatment of online moneylenders.

The borrowers are looking up to the regulatory authorities and the industry bodies to come up with a mechanism which will protect their interest in times of such a health and economic emergency.

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