The Corona epidemic crisis exacerbated economic inequality and created many obstacles and challenges facing governments and business owners, but in return it provided unique opportunities to address them.
The US "World Economic Forum" published a report polling the opinions of 40 prominent experts in the field of economics on the paths to rebuilding the economy and ways to recover after the decline of the Corona pandemic.
The report identified 3 main challenges that governments and business leaders face during the recovery phase of the global economy from the negative effects of the epidemic: reformulating economic policy to reduce economic inequality and improve social mobility, identifying new sources of economic growth, and aligning new goals with economic performance.
The site cited a comment by Economic Expert Saadia Zahidi, Director-General of the World Economic Forum, in which she saw that "the recent events opened a long-awaited discussion about the future of economic growth, and with our exit from the crisis the quality and direction of economic growth must be superior to its speed, and in this new model we need measures that exceed the output Gross Domestic Product and an updated set of policy tools to ensure that future growth is inclusive, sustainable and provides opportunities for all. "
Here are 5 opinions of economists on the crisis resulting from the Coruna epidemic and the possible pathways for a global economic recovery.
Stock market optimism
Experts agreed that despite the different picture that the data of the economy and stock markets paint, the unemployment figures are a better guide for the global economic outlook than the current recovery in financial markets.
Despite early recovery indicators in financial markets and translated into increased consumer spending and industrial production, the two indicators are still much lower than previous levels, and the recovery could be reversed due to a new wave of public closings.
Addressing economic inequality
Economists believe that inequality and economic inequality have increased in recent years, as the gains of technological change and global integration have not been distributed evenly, and the outbreak of the Corona virus has promoted some of these patterns, having had a stronger impact on the most vulnerable groups, so how the financial burden is shared in The future will be decisive.
Despite all the chaos that caused it, the Corona epidemic opened a window of opportunity, as the gap created by the crisis created a new opportunity to bring about widespread systematic change to prevent "economic inequality and inequality" from spinning out of control.
Rethinking taxes
Experts unanimously agreed on the importance of the role of taxes in addressing the inequality that the repercussions of the epidemic led to, and they saw that adapting tax structures is an urgent condition for achieving this, including continuing efforts to reduce tax evasion, and reaching an international agreement to impose taxes on digital activities In addition to reviewing taxes on wealth and high income earners.
Supply chains disrupted
One of the factors that may stand in the way of economic recovery, especially for developing countries, according to experts, is the failure of supply chains due to the repercussions of the epidemic and the closure imposed by it in most countries.
Although the decline in trade due to closings may be temporary, developing economies may suffer if companies take measures to increase flexibility in their supply chains by returning the important parts to the homeland or obtaining resources from several countries in parallel.
Encouraging innovation
Experts also believe that the crisis is expected to affect innovation, which is another major driver of long-term economic progress alongside global integration.
They also see innovation as crucial to overcoming the effects of the epidemic and tackling inequality and the climate crisis, but innovation endeavors may face difficulties due to the economic downturn that threatens R&D resources.
The report pointed out that governments can put economic progress on the right track by encouraging innovation and developing the strategies necessary for investment, but that will require a significant change in various sectors, and this will only be possible through cooperation and joint action between public and private organizations, and governments actively involved in re-establishing Forming existing sectors and building new markets.