INDUSTRY TALK
Few economies are ready through green investmen Almost a year into the onset of the COVID-19 pandemic, deep economic recession continues to have profound economic and social consequences. This year’s Global Competitiveness Report finds that countries with advanced digital economies and digital skills, robust social safety nets and previous experience dealing with epidemics have better managed the impact of the pandemic on their economies and citizens.
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s the global economy recovers, the opportunity exists for countries to expand their focus beyond a narrow return to growth. The Global Competitiveness Report Special Edition 2020: How Countries are Performing on the Road to Recovery, by the World Economic Forum, charts a way forward. In recognition of the extraordinary developments in 2020 and of the unified global effort required to tackle the health crisis and its socioeconomic fallout, the Global Competitiveness Index rankings have been suspended for 2020. The 2021 edition will see a return to benchmarking, providing a refreshed framework to guide future economic growth.
HOW DID BUSINESS SENTIMENT CHANGE DURING THE CRISIS? • Countries with advanced digital economies and digital skills have been more successful at keeping their economies running while their citizens worked from home. The Netherlands, New Zealand, Switzerland, Estonia, and the United States have performed well on this measure. • Countries with robust economic safety nets, such as Denmark, Finland, Norway, Austria, Luxembourg and Switzerland, were well placed to support those who could not work. Similarly, countries with strong financial systems such as Finland, the United States, the United Arab Emirates and Singapore, could more easily provide credit to SMEs to prevent insolvency.
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• Countries that could successfully plan and integrate health, fiscal and social policies have been relatively more successful in mitigating the effects of the crisis, including Singapore, Switzerland, Luxembourg, Austria and the United Arab Emirates. • Anecdotal evidence suggests that countries with previous experience of coronavirus epidemics (e.g., SARS) had better protocols and technological systems in place (e.g., Republic of Korea, Singapore) and could contain the epidemic relatively better than others.
‘In emerging markets and developing economies, business leaders noted an increase in business costs related to crime and violence, a reduction in judicial independence, a further reduction in competition and growing market dominance, and stagnating trust in politicians’
The report advocates a gradual transition from furlough schemes to a combination of proactive investments in new labour market opportunities
INDUSTRIAL BUYER JANUARY/FEBRUARY 2021
