Reflections on global collective action, global economy and the pandemic
Professor Pisani-Ferry has published a series of reflections on the global collective action (on Japan Spotlight and roject Syndicate), on international governance in confronting the COVID19 pandemic and on the prospectives for the US economy in the wake of the Presidential elections.
The full texts can be accessed here:
The range of problems whose solutions require international collective action and the acuteness of these problems are unprecedented. Yet as dreadfully illustrated by the Coronavirus crisis, the willingness of nation-states to cooperate to address these problems is lower than it has been for three quarters of a century. This tension is here to stay. This calls for a minimalist but effective strategy that builds on existing institutional arrangements and draws on solutions at work in various sectors to develop adequate incentive schemes that help address collective action problems, while limiting constraints to independent decision-making at national level.
If US President Donald Trump loses November’s election, he will most likely leave an insignificant imprint on some parts of the global economic system. But in several others – especially US-China relations – his term in office may well come to be seen as a major turning point.
The pandemic has highlighted the vulnerability of human societies and fortified support for urgent climate action. But while the small government, free-market template of the last four decades suddenly looks terribly outdated, history suggests that transitions between phases of capitalist development can be harsh and uncertain.
By putting the spotlight on the sector where markets perform the worst – health care – the coronavirus pandemic inevitably prompted a welcome reassessment of the relative roles of markets and the state.The question now is which parts of this emerging consensus will survive the acute phase of the crisis.