Designing the COVID-19 Recovery for a Safer and More Resilient World by Joaquim Levy, Carter Brandon, and Rogerio Studart published by World Resources Institute (2020).
As they respond to the unprecedented challenges of the current pandemic, Ministries of Finance can deliver on urgent social and economic priorities while addressing another major global risk — climate change.
The global economy will not be the same after the shock of the COVID-19 pandemic. Amid widespread sickness and death, supply and demand for goods have plummeted and unemployment has soared. In a matter of days or weeks, industries such as travel and tourism were disrupted at an unthinkable scale. The retail sector was transformed by social distancing, and companies worldwide dramatically intensified the use of remote working arrangements. The fragility and gaps in health systems, early warning systems, information systems and social safety nets have been exposed.
The first round of relief spending that governments worldwide are deploying is focused on maintaining liquidity across businesses and households; improving people’s access to health services and essential supplies; and providing humanitarian support to hundreds of millions of highly impacted people. The magnitude of fiscal stimulus packages ranges from low percentages to over 20% of GDP (see Figure 1). Some countries are already planning the next rounds of stimulus spending, focused on creating jobs and stimulating economic recovery.
This commentary offers practical suggestions to Ministries of Finance on how to deliver on urgent social and economic priorities while also addressing another major global risk — climate change — in highly socially and economically beneficial ways. Given that more than $10 trillion will be pumped into economies around the world this year, it is important that this effort not only reflates overall economic activity but also promotes a better and healthier economy — one that is more efficient, more equal, more resilient and lowcarbon. Addressing the climate challenge in parallel with the pandemic can bring immediate benefits for health by reducing pollution and increasing access to clean water; providing rapid employment benefits by mobilizing workers in labor-intensive and low-skill activities with high social returns; and improving preparedness and resilience prior to the onslaught of the next shock….”
Verificar PDF Anexado
