Governance

Joseph Nye considers lessons from his own work on preventing the spread of nuclear technology in the 1970s.

As the best documented major crisis in history, in substantial part because Kennedy secretly taped the deliberations in which he and his closest advisers were weighing choices they knew could lead to a catastrophic war, the Cuban missile crisis has become the canonical case study in nuclear statecraft. Over the decades since, key lessons from the crisis have been adapted and applied by the successors of Kennedy and Khrushchev to inform fateful choices.

Juliette Kayyem writes that deliberately accepting some risks, and then being prepared when disaster strikes, will serve human societies better than pretending that perfect safety is achievable. We cannot prevent an earthquake or a tsunami, but we have control over how much death and destruction it causes.

The Covid-19 pandemic has drastically disrupted people’s lives, livelihoods, and economic conditions around the world. The global shock has resulted in a tourism standstill (Djankov 2020), significant capital flight (Djankov and Panizza 2020), and a slowdown in remittances (Nonvide 2020), resulting in an urgent balance-of-payments need. Egypt responded to the crisis with a comprehensive package aimed at tackling the health emergency and supporting economic activity. The Ministry of Finance acted swiftly to allocate resources to the health sector, provide targeted support to the most severely impacted sectors, and expand social safety net programmes to protect the most vulnerable. Similarly, the Central Bank of Egypt adopted a broad set of measures, including lowering the policy rate and postponing repayments of existing credit facilities. The next section highlights the experience of firms in Egypt following these policies.

A Middle East-wide forum could facilitate dialogue and transparency on a range of short-term measures, engendering momentum to then take on other more complex items, such as regional arms control.

In the highly charged political atmosphere surrounding nuclear initiatives in the Middle East, legitimate concerns are sometimes blown out of proportion, with potentially problematic results. This has been the case with recent coverage and commentary on Saudi Arabia’s nuclear activities, which have been characterized by a degree of what can be described as “threat inflation.”

As the divergent experiences of the US and South Korea show, testing can be the difference between disease containment and catastrophe. Rather than relying on national governments to ensure the rapid development, production, and deployment of diagnostics during outbreaks, the world needs a global coordinating platform.

The nine issue papers contained in this report were proposed and written by graduate students at the Belfer Center for Science and International Affairs at Harvard Kennedy School. They present fact-based, nonpartisan analysis to help focus the next Administration on the key policy debates that must be resolved. And, they aim to create a platform for our students to engage with the most pressing policy issues of the day as they continue their careers in public service.

Today’s economic crisis leaves us with an unsettling and perplexing regret. Why weren’t financial portfolios already adjusted for risks that stem from health events such as pandemics? After all, financial portfolios are adjusted for liquidity risks, market risks, credit risks, and even operational and political risks.

Could using the cash in your pocket have the potential to spread covid-19? That question has rarely appeared in the news, but many governments and leaders in the digital payments industry are wondering how the virus might impact the use of cash. Several countries have already taken drastic measures to limit circulation of bank notes. Could such interventions lead to the end of cash payments?