Middle East & North Africa

Recap of MEI event "UNRWA, Its Mandate, Successes, and Challenges"

The geopolitical and geo-economic forces wrought by the coronavirus pandemic, as examined previously in this series, are likely to slow the transition to a more sustainable global energy mix. Fortunately, the pandemic has also resulted in governments gaining vastly greater influence over whether this shift stalls or accelerates.

For most people, there was nothing to celebrate when the International Monetary Fund downgraded its outlook for global economic growth in June, anticipating a contraction of 4.9% for 2020. Yet for others, such as the small but persistent group of economists and others known as the “degrowth movement,” the Covid-induced economic slowdown has a silver lining.

The search for silver linings to the coronavirus pandemic has come up woefully short. But one hopeful — and much talked of — prospect is that the disruption will accelerate the global shift to a more sustainable energy future.

As economies begin to orient themselves towards recovery and growth in a post-COVID-19 era, they will first need to disentangle themselves from their prior bedfellows, the state, whose courtship was necessary for survival during the pandemic.  Such bedfellow relationships have become increasingly common as government intervention is urgently needed for economic stabilization. Governments have also embraced their new role with vigor. According to the IMF, as of April 2020, countries have committed around $8 trillion to combat the pandemic and to remedy its ill effects on economies and societies. Decisions about how this money will be spent will undoubtedly recalibrate the logic of capitalism for years to come. 

Ambassador Nicholas Burns, Professor at Harvard University and an advisor to Democratic Presidential nominee Joe Biden, spoke with “The Arena” on the Trump administration’s handling of the coronavirus crisis (“a failure that has cost over 110,000 Americans lives”), rising U.S.-China tensions (“deeply hurt global recovery efforts from both the coronavirus and the economic crises”), the upcoming presidential election (“Trump has chosen China as his demon”), and Israel’s annexation plans (“the issue that could most harm the U.S.-Israel relationship”).

Stephen Walt offers what he considers to be the top five silver linings from the COVID-19 pandemic.

During times of crisis, the most effective leaders are those who can build solidarity by educating the public about its own interests. Sadly, in the case of COVID-19, the leaders of the world's two largest economies have gone in the opposite direction, all but ensuring that the crisis will deepen.

Stephen Walt writes that even though Bernie Sanders is out of the presidential race, the time has come for many of the policies that he promoted: Universal Healthcare; Democratic Socialism; Income Redistribution; and Foreign Policy.

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.