Opinion | How coronavirus bailouts can kick off a ‘Great Reset’ – for a fairer, greener economy
- Governments must use today’s short-term rescue measures to encourage more responsible business practices, save jobs, address inequality and climate change, and build resilience against shocks
As the pandemic-induced lockdown wreaks havoc on the global economy, exposing the inadequacies of many institutions, an era of bigger – and perhaps bolder – government has arrived.
Already, an estimated US$9 trillion has been pumped into the global economy to support households, stem job losses and keep businesses afloat. As some countries emerge from lockdowns, their leaders have a unique opportunity to reshape the economy to provide better, greener and more equitable outcomes for all – what the World Economic Forum deems the “Great Reset”.
For example, France, Denmark and Poland have denied government support to companies with headquarters in tax havens outside Europe. And Britain has banned dividend payments and restricted bonuses in companies accessing its loan scheme.
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Japan’s economy gets US$1.1 trillion stimulus after coronavirus state of emergency ends
Meanwhile, Russia is subsidising wages for companies that retain at least 90 per cent of their workforce, and Italy is implementing a temporary ban on dismissals. It remains to be seen if employment will be maintained after the restrictions are lifted but, for now, they provide a cushion – and a fighting chance – for workers.