Covid-19 shock and resilience In the absence of production-oriented institutions

The present article, with a descriptive-analytical approach and within the framework of the new school of institutionalism, focuses on the importance and role of production in creating resilience and shows how the neglect of production can make countries vulnerable to exogenous shocks such as Covid-19 disease. Global experience shows that countries with export-oriented manufacturing sectors and their institutions that encourage production, especially in the industrial sector, are more responsive to external shocks, including coronaviruses, and conversely, in countries with poor production capacity, dependent on oil exports due to institutional inefficiency, the informal sector is wider in their economies, and are among the poorer and developing countries, the damage from the outbreak to their country is widespread and it will be more lasting. An overview of the state of the country's economy over the past decade and how to deal with external shocks, including the shock of the Coronavirus, shows that the country has a long way to go to achieve a resilient economy. The dominant institutional framework in the country, especially in recent years, which has been very beneficial to the unproductive and rent-seeking sectors and has severely weakened the productive strength of the country. An examination of the most important protection measures that the policymaker has implemented since the outbreak of this disease shows that manufacturing businesses and production support services, in order to enjoy the support, have been largely neglected by the policymaker. Also, given the continuing outbreak of coronavirus and uncertainty about future vaccine availability, there is a need for macro-policy and long-term planning to support manufacturing firms and businesses in order to prosper the economy and maintain the resilience of the economy is felt more than ever.