How the world can ‘reset’ itself after COVID-19 – according to these experts

world

(Edwin Hooper, Unsplash)

This article is brought to you thanks to the collaboration of The European Sting with the World Economic Forum.

Author: Kate Whiting, Senior Writer, Formative Content


  • The Great Reset is a new initiative from the World Economic Forum and HRH the Prince of Wales to guide decision-makers on the path to a more resilient, sustainable world beyond coronavirus.
  • The economic fallout from COVID-19 dominates risk perceptions, but there is a unique opportunity to reshape the global economy.
  • Greenpeace International’s Jennifer Morgan, IMF chief economist Gita Gopinath and ITUC head Sharan Burrow discuss how they perceive a reset.

There won’t be many among the 7.7 billion people on Earth who haven’t been affected in some way by COVID-19.

From sickness and the death of loved ones to work shortages and school closures, the pandemic’s ramifications have touched every part of society – and thrown inequalities into sharp relief.

As lockdowns are starting to ease, governments and organizations across the globe are turning their attention to the recovery process – and the opportunity it provides to rebuild in a different way. One that makes the world better for everyone and addresses the other great crisis of our time: climate change.

Coronavirus china virus health healthcare who world health organization disease deaths pandemic epidemic worries concerns Health virus contagious contagion viruses diseases disease lab laboratory doctor health dr nurse medical medicine drugs vaccines vaccinations inoculations technology testing test medicinal biotechnology biotech biology chemistry physics microscope research influenza flu cold common cold bug risk symptomes respiratory china iran italy europe asia america south america north washing hands wash hands coughs sneezes spread spreading precaution precautions health warning covid 19 cov SARS 2019ncov wuhan sarscow wuhanpneumonia  pneumonia outbreak patients unhealthy fatality mortality elderly old elder age serious death deathly deadly
Predicted effects of coronavirus on the world.
Image: WEF

With the economic fallout from COVID-19 dominating risk perceptions, this is a rare window of opportunity to shape a more sustainable, resilient world. And starting today [3 June], the World Economic Forum is working with HRH The Prince of Wales on an initiative coined Great Reset, to guide decision-makers on the rocky path ahead.

Leading up to the Forum’s Annual Meeting 2021, which will be devoted to the Great Reset, a series of virtual Great Reset Dialogues will take place every other Wednesday – bringing together global stakeholders from all sectors to discuss the way forward.

Here, three key experts from the Forum’s podcast series, World Vs Virus, envision a world beyond coronavirus.

Jennifer Morgan on the Green Reset

COVID-19 gives us the chance to step back and rethink the world we would like to live in, says Jennifer Morgan, Executive Director of Greenpeace International.

“We set up a new world order after World War II. We’re now in a different world than we were then. We need to ask, what can we be doing differently? The World Economic Forum has a big responsibility in that as well – to be pushing the reset button and looking at how to create well-being for people and for the Earth.”

Morgan is positive about the potential for a more joined-up approach to rebuilding greener economies, such as the European Green Deal, with collaboration between governments, companies and the youth movement.

“Companies have learned from the past and should take the opportunity to create a more circular zero-carbon economy for profit and for people.

“Government funds need to be invested in people for long-term jobs. We have an opportunity to shift coal miners who have been working in those types of jobs into other ones over time. It can’t be an either/or. We need to be thinking about these things together.”

 

What the world has learned from responding to the pandemic, with unity and speed, can be applied to tackling the climate crisis, too, Morgan argues.

“When we listen to the science and we understand what’s at stake, and we have clarity on what we need to do, we can address these crises. We know what the problem is. We know the people who are being impacted by it. We know what the solutions are.

“I think the key is to put the health of people and the planet first. That’s what’s happening on COVID-19, but it has not yet happened on climate change in many cases, because the fossil fuel interests and the large industrial farming interests want to keep things the way they are. And what we’re learning from this pandemic is it is possible to switch it.”

coronavirus, health, COVID19, pandemic

What is the World Economic Forum doing to manage emerging risks from COVID-19?

The first global pandemic in more than 100 years, COVID-19 has spread throughout the world at an unprecedented speed. At the time of writing, 4.5 million cases have been confirmed and more than 300,000 people have died due to the virus.

As countries seek to recover, some of the more long-term economic, business, environmental, societal and technological challenges and opportunities are just beginning to become visible.

To help all stakeholders – communities, governments, businesses and individuals understand the emerging risks and follow-on effects generated by the impact of the coronavirus pandemic, the World Economic Forum, in collaboration with Marsh and McLennan and Zurich Insurance Group, has launched its COVID-19 Risks Outlook: A Preliminary Mapping and its Implications – a companion for decision-makers, building on the Forum’s annual Global Risks Report.

The report reveals that the economic impact of COVID-19 is dominating companies’ risks perceptions.

Companies are invited to join the Forum’s work to help manage the identified emerging risks of COVID-19 across industries to shape a better future. Read the full COVID-19 Risks Outlook: A Preliminary Mapping and its Implications report here, and our impact story with further information.

Gita Gopinath on the Economic Reset

The nature of the COVID-19 crisis and the speed and scale of job losses makes it “glaringly” different from the 2008 financial crisis, so the solutions will need to be distinct, argues Gita Gopinath, the International Monetary Fund’s (IMF) chief economist.

In the short-term, government spending on health will be the top priority to mitigate not only the health problem, but also to “ensure a sound recovery once we come out of this health crisis”.

More spending will mean more debt, so for countries already experiencing debt distress, concessional financing and debt service relief have been approved by the IMF, Gopinath says, and “more will be needed in the coming years”.

While for other countries, liquidity facilities will be needed to avoid a debt crisis.

In the longer term, ongoing low interest rates “will help advanced economies especially to rollover their debts at very low rates”.

“Once we start to see a recovery in growth, that should help bring down the debt levels. For other countries, especially the poorer nations, I think that debt restructurings, debt relief, will have to continue to be done.”

There’s no one-size-fits-all approach, but countries will need to raise revenue, which may mean a form of solidarity tax.

“Countries will have to find ways of raising revenues and progressive taxation could be one form of it. Solidarity tax may be needed in some countries. It varies across countries, but this will be an issue countries will have to deal with because it will be one of the big legacies of this crisis.”

Public sector

The public sector will have a bigger role to play in future, she says, as traditionally happens in such crises.

“I believe it’s very important for countries to recognize there are essential services that need to be provided in terms of healthcare, education, good governance and a social safety that cannot be compromised on.”

The crisis has also made the need for global cooperation “abundantly clear” says Gopinath.

“This is a virus that doesn’t respect borders: it crosses borders. And as long as it is in full strength in any part of the world, it’s affecting everybody else. So it requires global cooperation to deal with it.”

Greener future

Like Morgan, Gopinath believes the COVID-19 crisis is a wake-up call that we need to shift to a greener economy, when countries are in a position to begin public spending.

“But how do we get to a more planet-friendly way of doing economic activity? What’s needed is to ramp up production of alternative forms of energy. And second, to have infrastructure that’s much more climate-friendly. In both these measures, the public sector can play a very big role.

“Once you have those in place – alternatives to energy and greener, physical infrastructure – then you can obviously put on top of that carbon pricing, too, so companies and firms internalize the impact of their activities on the climate.”

Sharan Burrow on the Work Reset

“I can see how we could use this opportunity to design a better world,” says Sharan Burrow, General Secretary of the International Trade Union Confederation (ITUC), “but we need both national and multilateral institutions to make it work.

“Solidarity and sharing and deciding on how you protect people – both within nations and globally – is absolutely critical at the moment.”

A survey by the ITUC found only one in five (21%) of its 86 member countries provides sick leave for all or some workers, so the reset requires social dialogue to ensure workers are protected.

“We must ensure this design is inclusive of universal social protection. The world could fund it right now – and yet 70% of the world’s population has no social protection. It must be respectful of public services rather than simply trying to profit from them.

“So public support for people and, of course, of the social dialogue that makes it possible for us to get the balance right, are crucial. If you’ve got workers, employers and civil society at the table with governments at all levels, then you can design the kind of future that takes into account the right priorities for people, for the planet and, of course, for stable economies.”

People and planet

While short-term measures such as income support are vital now, post-reconstruction policy frameworks are needed in the medium- to long-term, says Burrow. And these have to deal with both people and the planet.

“We need to design policies to align with investment in people and the environment. But above all, the longer-term perspective is about rebalancing economies.

“What we don’t want is an unbalanced economy where you can’t get essentials like healthcare products and food because they’re produced in one group of countries and not in a balanced fashion around the world. We have to look at how to build a better economy alongside the convergent crisis of the environment – which is not going to go away.”

In short, we need to shift our economic focus away from profit, says Burrow.

“We want an end to the profit-at-all-costs mentality, because if we don’t build an economic future within a sustainable framework in which we are respectful of our planetary boundaries, and the need to change our energy and technology systems, then we will not have a living planet for human beings.”

the sting Milestone

Featured Stings

Can we feed everyone without unleashing disaster? Read on

These campaigners want to give a quarter of the UK back to nature

How to build a more resilient and inclusive global system

Stopping antimicrobial resistance would cost just USD 2 per person a year

What talent means in the post-COVID-19 workplace

Energy: new ambitious targets on renewables and energy efficiency

The Americans are preparing for the next financial crisis

Inequality in the delivery of health services

At UN, France’s Macron says more ‘political courage’ is needed to face global challenges

China revisited by the former Ambassador of Hungary to China

2019: An unpredictable, confrontational and financially ominous year

Niger population’s suffering ‘increasing with each passing month’: UN Refugee Agency

Health Education, is it a necessity?

Germany is the world’s most innovative economy

Basel III rules relaxed: Banks got it all but become more prone to crisis

Maros Sefcovic Canete European Commission Energy

Better late than never? Commission runs now to fight energy dependency on Russia with the sustainable energy security package

State aid: Commission approves Danish public financing of Fehmarn Belt fixed rail-road link

Trade with the United States: Council authorises negotiations on elimination of tariffs for industrial goods and on conformity assessment

The West and Russia accomplished the dismembering and the economic destruction of Ukraine

5 libraries doing innovative things to help their communities

EU/African, Caribbean and Pacific partnership: MEPs list key aims for renewal

EU-China trade: closer ties as US-China trade battle brews

UN chief commends Algerians for ‘mature and calm’ demonstrations for change, leading up to presidential resignation

Restoring government control across Central African Republic is ‘key’ to lasting peace, stability – UN envoy

Draghi cuts the Gordian knot of the Banking Union

The US will impose tariffs on Mexico, says President Trump

Understanding and demystifying the new outbreak of Coronavirus

How COVID-19 can be the Great Reset toward global sustainability

COP21 Breaking News_07 December: “Remove Roadblocks to Climate Action”

This is where teachers are paid the most

Who will secure Lithuania?

Fair completion rules and the law of gravity don’t apply to banks

UN human rights report cites ‘multiple root causes’ of deadly Chile protests

Trump goes ahead with plan to undo globalization; targets China and EU

UN chief welcomes agreement by rival leaders in South Sudan, as a step towards ‘inclusive and implementable’ peace

German political spillovers: ECB’s Draghi resists first attacks by AfD

We need a fresh approach to climate change migration. This is why

3 strategies for Africa to thrive in this new era of globalization

‘Great cause of concern’ UN chief tells Security Council, surveying ‘bleak’ state of civilian protection

Human rights are everyone’s business, amid relentless crises around world: UN’s Bachelet

The Brussels bureaucracy blocks the Youth Guarantee scheme

Iran: UN rights chief ‘deeply disturbed’ by continuing executions of juvenile offenders

Coronavirus Global Response: EIB and Commission pledge additional €4.9 billion

The beginning of a revolution in healthcare

With Caribbean island life under threat, UN chief pushes to face ‘headwinds together’

This is where people work the longest – and shortest – hours

Service Engineer Intern – 1991

EU Border and Coast Guard: new corps of 10 000 border and coast guards by 2027

Online platforms required by law to be more transparent with EU businesses

6 ways to future-proof universities

These floating homes could protect people from flooding as sea levels rise

The European brain drain and the deteriorating medical workforce

COVID-19: MEPs fear impact on justice system and threat to rule of law

Children of ISIL terrorists likely held in ‘secret detention facilities’, UN human rights office warns

Prevention is key to ‘breaking the cycle of HIV transmission’, UN chief tells General Assembly

UN General Assembly: Here are the 5 big summits to watch for

Worldwide UN family celebrates enduring universal values of human rights

Military Medicine and its Relationship with Antibiotic Therapy

Survivors of ISIL terror in Iraq want justice, not revenge, says head of UN investigation team

Oslo leads the way in ‘Breathe Life’ campaign for cleaner cities in climate change era

‘Being open about my mental health created a better work culture’

Commission celebrates the 30th anniversary of the Jean Monnet Activities promoting European studies worldwide

EU and China resolve amicably solar panel trade dispute

How India’s new consumers can contribute to a $6 trillion opportunity

More Stings?

Advertising

Speak your Mind Here

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s