World Economy. Resilience or Great Reset?
ICTF Magazine of the Association of International Credit and Trade Finance Professionals (ICTF) - September 2020 issue
10 Pages Posted: 23 Oct 2020 Last revised: 18 Jan 2021
Date Written: August 6, 2020
The COVID-19 pandemic, like other previous health crises, was a severe and unlikely predictable event that will certainly leave lasting economic and social scars around the world in the years to come, but hopefully, it will also probably become the catalyst of a brighter and more sustainable future, thanks to the acceleration of new priorities, values, and lifestyle habits in society and to the rapid changes in industries’ transformation, digitalization, automation, consolidation, reconfiguration of supply chains, productivity enhancements, and the invention of exciting new business models.
The fact that the global communities have been hit by this pandemic crisis almost simultaneously will certainly become a powerful driver of change, adaptation, and resilience for economies, and the enabler of a more rapid and coordinated global crisis resolution strategy.
Dramatic health and social crises often can become the catalyst of unexpected innovations; of new waves of ideas, and the inspiration for reimagining and rebuilding a new and more inclusive, sustainable, and environmentally-friendly economic model and a more socially-responsible social contract.
In fact, history teaches us that human kind has always found a way forward, no matter how hard things have been. Creativity, disruptive innovations, and some of the most unimaginable new discoveries have often come to life after prolonged periods of suffering and hardship.
This crisis is opening up or accelerating new exciting growth and job creation opportunities in new areas of business and, in particular, in new emerging industries related to sustainability; clean and renewable energy sources; mobility and transportation; digitalization, social entrepreneurship, and space exploration, as consumer and firms learn to adapt to the “New Normal” and to reinvent themselves.
The article aims to explore, through data-dependent analyses, some of the greatest challenges and opportunities facing the world economy in the post-COVID-19 era and the major casualties and potential risks related to the dramatic externality.
The article also aims to highlight unique and specific fragilities at the onset of this pandemic crisis and the urgent need for a globally-coordinated policy response to address them in order to make the world economy more resilient. the article also recalls in his conclusion the unique and unparalleled abilities of human kind, and its highly interdependent and interconnected communities in a globalized world, to overcome the most difficult challenges and to find the inspiration to turn severe and dramatic health, economic and social crises, like COVID-19, into the seeds for a new, bold and brighter rebirth; a robust new recovery trajectory towards a more resilient, inclusive, fair, and socially-responsible economic model.
Keywords: COVID-19; sustainability, economy; resilience; scenario analysis; world economy; debt; fiscal policy; monetary policy; financial markets; financial stability; inclusion; corporate social responsibility; corporate citizenship; governance; public policy; recovery fundsomy
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