The implications of the COVID-19 pandemic for employment and government accountability: evidence from an emerging market

Ahmed Diab

Journal of Accounting in Emerging Economies, 2023, vol. 14, issue 4, 886-909

Abstract: Purpose - This study analyses the socioeconomic impact of COVID-19 on government accountability regarding the employment of both national and migrant workforces by bringing evidence from an emerging market. In doing so, this study addresses if/how the government discharged its accountability to the public during this recent global health crisis, which started in late 2019, with its effects still being felt today. Design/methodology/approach - This study is based on a close reading of the relevant news media (local and international), published research and official reports, as well as ten conversations with business managers to analyse the socioeconomic impact of COVID-19 on government accountability in the Kingdom of Saudi Arabia (KSA). This study draws on insights from public choice theory in trying to understand why some governments take an economic perspective while exercising accountability to their population during the pandemic. Findings - It was found that COVID-19 led the government to pursue plans for the localization of the professions and increase employment rates among nationals vs. foreigners or migrant workers. The crisis was exploited by the government to achieve macro socio-political and economic goals, demonstrating its accountability to citizens, rather than foreign workers. This shift shows that difficult and exceptional circumstances can present opportunities for policymakers in emerging markets to achieve national policy and political aims. Originality/value - This study enhances the author’s understanding of accountability during crises (i.e. crises-induced accountability) in emerging markets. The analyses presented enrich the crisis management literature by highlighting the implicit actions of national leaders that affect the lives and well-being of their constituents, especially vulnerable groups.

Keywords: Accountability; Employment; COVID-19; Localization; Public choice; KSA (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:eme:jaeepp:jaee-09-2022-0266

DOI: 10.1108/JAEE-09-2022-0266

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