The trend is negative and must be stopped

Their power resides on the capacity to build collective fear. In different parts of the world, some governments are taking advantage of the pandemic to create extreme anxiety among their people. Then, they make sure, through all kinds of media platforms, that they are perceived as very decisive, able to take tough decisions to save as many lives as possible. Some of those measures go far beyond the necessary, from a public health perspective. They basically have a political purpose, to strengthen those in power. In addition, such radical measures allow the governments to hide the weakness of their national health systems, their extremely poor capacity to respond to emergencies. The truth is that many governments are just inept and cannot find the balance between an adequate health response and the mitigation of poverty. That incompetence and the political dividends they expect to draw from tough decisions are just ruining their countries. We are going back to a world that will combine despotism, increased inequality, and desperation. Can we accept that trend? The answer must be clear and strong.

Let the airlines take a chance

A brief note about civil aviation and everything related, including plane makers and service providers. This is a sector that is deeply impacted by the coronavirus crisis. It will be one where major losses will occur. Every airline is losing massive amounts of money daily. And no one can predict when the skies will open again. The longer the wait the greater the risk of insolvency, of extensive disruption. And governments cannot save the entire sector. Any public money invested in aviation economics will be based on a reduced presence in the skies, on fewer planes and fewer jobs. It will be very tough. They will be competing against so many other demands on limited public resources. But let me be clear: it is critical to resume a handful of flights. It might be less expensive than keeping the planes on the ground. And it will help everyone to see where the priorities must be. The airlines will make their choices. In this case, the first role of governments should be to facilitate air travel, to lift the restrictions that make no real sense from a public health point of view.

Three challenges

Besides the public health challenge and the balanced approach to the opening of economic life, the third big issue we are confronted with is about democracy and freedom. Our governments are imposing too many limitations and controls on matters that have to do with our liberties and personal choices. We can accept such decisions for a while and with full justification. But they must be temporary. No way we can have a state of exception for extended periods of time. Pandemics are not treated with limitations of liberties and the deployment of police forces. That was the practise in the middle ages. They are treated with masks, disinfection, hygiene, distancing, and medical surveillance and advice. We must understand that governments love to control people. It is in their genes, even in our multiparty societies. And if they can, they will keep some form of control for an awfully long time. That could be the beginning of a regime change that we certainly do not want. In the end, we do not want to copy the Chinese government when it comes to human rights issues.

CNN is only about US disasters

I have stopped watching CNN International for a while. The news is every day and every hour about President Trump and the virus. Tiring. These are two very disturbing subjects. Dangerous. An overdose of any of them can make you extremely sick. The combination of both is explosive. I feel sorry for my American friends that have to go through such a sorry moment. Nobody would expect the US to be confronted with such a complex situation.

The transition ahead of us

Many of us are now getting tired of the lockdown. This is, therefore, a dangerous period, when people start looking for opportunities to escape the quarantine and become more critical of the authorities. They are also feeling the squeeze when it comes to their income. Many families have been living on small budgets. They are at the limit of what they can sustain. They want to go back to the economy. They think it should be possible if adequate protection measures are implemented. Long transition periods might be wise from a public health point of view but have serious political costs. Governments must be clear when explaining the way the transition is expected to work. That is a task that requires top attention.

The balance that must be found

There is fear and growing poverty, in most corners of the world. We witness uncertainty and despair. The pandemic is killing people and destroying livelihoods. These are the two critical dimensions that must be tackled as a matter of great priority. Both are very urgent matters. The wise leader is the one that can strike the right balance between them. And who knows how the balance should evolve. That means, among other things, that an absolute and prolonged lockdown, with no economy, is not a balanced approach. It is not even necessary if there are enough masks to go around and the appropriate human behaviours are followed.

I just learned, for instance, that Argentina has decided to close its commercial airspace up to September. That is too long and certainly not a sage decision. A country like Argentina, which is already in an awfully bad economic shape, should approach any drastic decision with lots of prudence. The same, elsewhere. I mention Argentina as just an example.

A war economy or just words?

You call it a war, but you keep acting as if there was no need to reorganise the entire production to win the war. When you are at war, your economy must become a war economy. If not, you are not a good leader and you cannot connect your words with the reality that must be put in place. 

Leading the international response

It is massively wrong to criticise the World Health Organisation (WHO) at this stage. We are still in unknown territory and unchartered waters as far as the Covid-19 pandemic is concerned. We don’t know what is going to happen in Africa and in other parts of the world, where the health systems are extremely weak. WHO has a technical presence in those countries and lots of experience in assisting them. As such, the wise thing to do would be to strengthen its operational capacity. That means that its authority must be recognised, and additional resources mobilised. To weaken and destabilise the organisation, as President Trump is doing, is unacceptable. We do not expect the current US President to provide the leadership it should, as head of the strongest State on earth. Donald Trump does not understand the world we live in and the role the US should be playing. But, at least, he should keep quiet as far as WHO is concerned.

The sad thing is that we are confronted with a devastating global calamity at a time there is no real global leadership. The US is getting more and more confused with its internal politics. The turmoil is amazing out there. Elsewhere, in the other regions of the world, there is no visionary leader, nobody of gigantic stature, capable to call the international action. The Prime Minister of New Zealand, Jacinda Arden, is sometimes mentioned. She is indeed an example. But her country is too small and too far out for her to be able to play a global role. All the other potential leaders are too busy with their own national situation – or messing things up, as it is the case with Narendra Modi of India.

I see a role for the UN Secretary-General. But I also recognise that his voice must be amplified by the international media, for that role to be effective. And that is not very easy to achieve at the moment.

Time for exceptional leadership to step up

This is a time of great anxiety. It’s a global challenge. It would require global political leadership, men and women in decisive positions of authority that would come together and would address the crisis with a single voice. It is not enough to have the G7 or the G20 finance ministers talking about debt relief and access to tremendous amounts of theoretical money. It is also not enough to get statements from the IMF, the WB or the WHO. Even the UN Security Council, if it could agree on a resolution, that would be good but insufficient. We need the key heads of State and government to agree on a joint declaration that would be some guide of roadmap out of the crisis. It would send an exceptionally important message of togetherness, cooperation and hope.

Unfortunately, we are very far from such a common position. The world is leaderless and more fragmented than ever.

If we can’t have a global message, why don’t we try to agree on a common European position at the leadership level? Is it too difficult to formulate a joint way forward, that would be larger than just talking about the post-crisis recovery, something of a shared vision about the kind of European society we would like to build together, after such a unique test?

The moment calls for leadership that can unite people and envision tomorrow’s world.  

The complexity

In my part of the world, the debate is now moving towards the recovery issue. To be able to get back to normal life as soon as possible. People are worried about jobs and the economic impact of this astonishing crisis. It’s now clear that the new debt situation of the states, the firms and the families will reach gigantic proportions. Many will not be able to reimburse it. They fear poverty. In any case, the Gross Domestic Product will contract seriously, to dramatic levels if the lockdown goes on beyond mid-May. There will be a lot of pressure on governments in the next days and weeks for them to provide masks free of charge and to allow the economy to re-open. At the same time, people want to know that the hospital system is still able to respond and that enough money is invested in the vaccine research. All this will have a tremendous political cost. I can anticipate a lot of political malaise in some countries, particularly in France and Spain. That will add to the complexity of an extremely complicated crisis. 

The vision

In our part of the world, Easter time is about a renaissance. That’s a very appropriate moment to talk about the future. The public message must be inspired by prudent optimism. It´s good politics to describe the possible scenarios ahead of us. And give people more information about recovery plans. People appreciate being treated as adults, as responsible citizens. There is too much talk about the pandemic and not enough about the actions that will be supported during the recovery phase. Let’s move from fear to resilience. Leaders must share a vision that brings hope and shows to everyone they know what they intend to do, once the public health menace is under control. To narrate a vision will also help the leaders to sharpen their views on the policies that are required. A vision is not about wishful thinking. It is about what one sees as the situation after the crisis. It has a powerful positive effect on everyone, including on the leadership itself.

The Security Council and the pandemic

Yesterday, the UN Secretary-General addressed the Security Council on the Covid-19. It was the right move because the pandemic is not just a global health problem but also a serious threat to international peace and security, as well as a major humanitarian challenge for less developed States. I recommend an attentive reading Mr Guterres’s remarks. They are very thorough. The link is as follows:

https://www.un.org/press/en/2020/sgsm20041.doc.htm

China, Russia and South Africa adopted a very similar line of response to the Secretary-General. They basically stated that Covid-19 is a public health issue and therefore it should not be discussed in the Council.

That’s a very narrow approach. It’s terribly wrong. They know it, but their main concern was to avoid a political discussion that would give the UN some room for a more active and comprehensive role. That has confirmed a trend we know well: to keep away from the Security Council the most strategic issues the world is confronted with. And to marginalise the UN Secretariat when it is in their own interest, as major countries.

Optimism

It requires an enormous effort to be positive in today’s situation. We see the number of victims, we read the stories of their suffering, we watch the unemployment figures shooting to the stars, the immense level of poverty that goes along, we think of people we have known in Africa and elsewhere in the least developed economies, and wonder how can they survive on daily basis, we are told of perfectly viable companies going to the rocks, and all the rest, and we get depressed. But we must convince ourselves that sooner we will be able to contain the pandemic – to contain, as a first stage, before we eliminate it – and that normalcy will be invited back. We do not really know what type of normality that will be, people talk about a changed society, but as soon as people feel free to take care of their lives we might see a big leap forward, a renewed level of energy. I think we have here an opportunity to come out of it wiser. And that makes me feel a bit optimist.

The African situation

My friends all over Africa tell me that the pandemic is gaining ground in several countries. There are lockdowns in place in some cities. The big problem is that the national health structures have very limited capacity to deal with Covid-19. It all starts with the means of testing. And then, the treatment, the conditions in the hospitals, the shortage of medical staff at every level. There have been some figures about the number of cases. But the tally is far from being reliable.

Leading people in those countries are looking in the direction of China. For them, China could be a model and a source of help. They are also very surprised as they see European nations, developed societies, struggling to respond to the challenge. They can’t understand the difficulties the Europeans meet. They thought that a situation of that type would never happen in Europe. The European image is losing sharpness and light in the African circles. That is one of the consequences of the pandemic.

The ordinary African citizen, particularly those in the big metropolis, have very little space for social distancing. That notwithstanding, I have seen pictures of empty cities throughout the Continent. People know what is at play. And they try to take it as seriously as their living conditions allow them to do it. I have a deep admiration for them. They are, in many cases, the poorest of the poor, they must fight every day for their own economic survival, but they are showing a good measure of responsibility.

One of things that must be placed back on the agenda, once we start getting out of these troubling times, is the relationship between Africa and Europe. Both sides have a lot to gain from a stronger partnership. And, as I said several times, we can include the Chinese in the equation. They will gain a lot as well, if we are all together.

Boris Johnson and Covid-19

Wishing a speedy recovery to Prime Minister Boris Johnson of the UK. He has been transferred this evening to intensive care because of the coronavirus. This sad moment sends a very strong message to the population. The coronavirus is a very threatening disease and people must follow all the official protocols the health authorities have adopted. The Prime Minister is a strong person, not old at all, and surrounded by the best medical care one can get. Notwithstanding all that, he is struggling. He has been sick for eleven days or so. If that can happen to the leader of the UK, we must pay a lot of attention to the virus. This is no small matter.

Bamako sunset

Thanks to a friend and the digital technology, I could watch the sun setting below the horizon of Bamako, the capital of Mali. The Niger River reflected the last rays of light of the day and sent me a message of beauty, tranquillity and vastness. Not far, the image showed one the arteries of the city, as busy as it is customary on a Sunday end of the afternoon. We talked about the virus – five registered deaths so far in the country. But we know how difficult it is to record the true cause of death in a country like Mali. Fine. The important point, for me, was to learn that life goes on as usual in the city and elsewhere. The UN mission, and the embassies, are following the prevention protocols. But the ordinary Malian is focused on what keeps him busy every day: to find enough resources to buy food and other basic needs; and to worry about the security of his family and his own, especially in the central and northern regions of the country. And those concerns are there to stay. People have very little time for the virus, as they had no time for the legislative elections that took place last weekend. The turnout in Bamako was around 10%. That says a lot. And it reminds us that we might live in a global village, but some corners of that village spend their time just trying to survive, virus or no virus.

Our daily dose of fear

In my area of the city there is one big supermarket. I go there every Thursday morning, for the weekly shopping. And sometimes, one more time, for some item that might be needed and was left out of the weekly list. During the last two or three weeks, I noticed that the number of people inside the supermarket is much smaller. Not because of any entry control, let me add. It all starts at the underground parking. Nowadays, it’s much easier to find a good spot for the car. I should add that most of those shopping on Thursday in morning are older customers, retired people. I am told they are afraid of spending time in the big shop. And today, as I was chatting over the phone with a friend, I got the confirmation that there are many people – and more so now, as the bad figures keep increasing – who are simply afraid of any contact, even a distant one, with other shopping fellows. And I said to myself that we are living in very strange times, when the simple act of moving along the wide aisles of a supermarket is seen as a dangerous exercise.  

What lies ahead is simply unique

The economic dimension of the crisis is huge. That’s now obvious to everyone, as the figures about unemployment and temporary layoffs become known. And that explains the gigantic size of the recovery programmes that have been announced. The amounts are just mind-boggling, difficult to imagine, because of the large number of zeros that follow the initial figure. Hundreds of billions, many of them close to trillion figures, or even above, as it is the case in the US. We are talking about funds that are simply not available. They will have to be printed.

It is a dramatic situation to many families and a move to extraordinary levels of indebtment by the States, the corporations and firms, and the families. Large amounts of debt, both public and private, were already a key feature in many countries. Our economies have been in the red for several years. But the previous debt levels will look as small fish when compared with the numbers in the next phase, the recovery phase. Most of that debt will be untenable and will have to be write off, sooner or later. That will cause major changes in wealth ownership. The point will be to manage such transition in a way that would avoid the ruin of key sectors of the economy, including the pension mechanisms, the banking and insurance systems, the bond and the property markets.

It is indeed a completely new ball game. We will have to play it and keep defining the rules as we move on. It will require an extraordinary level of international cooperation. That means wise leadership, plenty of foresight and political courage. Unfortunately, wise leadership seems to be a dimension that is seriously absent in the current international relations scenario. In my opinion, that’s one of the key risks that can seriously disrupt the next stage of our life in this small planet. These will be exceptional times.

Beyond the facts

Today I give everyone a break. There is no writing about the pandemic. No word about the crisis millions are facing. No mention of the economic collapse we are witnessing. Let’s be light today. It’s better for our own mental health.

The UN's appeal must be heard

The UN Secretary-General launched yesterday an appeal for funds to help the developing countries to tackle the Covid-19 pandemic and to finance their socio-economic recovery. António Guterres stated very clearly that this pandemic is by far the deepest crisis the world has faced since World War II. It has many dimensions and all of them tremendously affect the weakest people in the poorest countries of the world. The amount he deems necessary is about $8 trillion US, meaning 10% of the global GDP.

I agree with the Secretary-General’s analysis, approach and amount he is looking for. But I am extremely pessimist as it regards to the response the richest countries will provide. Every country, in the better off regions of the world, is desperately looking for resources to deal with the impact of the Covid-19 within their own borders. The call for international solidarity is a distant call. It will not be heard. The developing world will be left to its own fate.

The developing countries that were better connected to the global economy will gradually re-establish those connections. It will take time for different reasons. The logistical chains of supply have been seriously disrupted, the demand in developed economies will remain weak for a good period and there will be an attempt to produce locally what was up to now imported from afar. International trade might take a new shape, to operate within smaller circles of nations.

The countries that were outside the global sphere of production and commerce will continue to struggle at subsistence level. Poverty will continue to be as widespread as it is now. The opportunities to go beyond the local level will not open. And we can easily guess that international cooperation and aid priorities will go further down in the multilateral agenda.

In both cases, food production for local consumption will become the central concern. Any assistance to the agricultural sector will make a difference. The other concern will be to maintain peace and security in societies that have been profoundly de-structured and further impoverished.

The media that matters is too busy with the Covid-19 progression in the most developed societies to give any serious echo to Antonio Guterres’s appeal. No media attention means additional hurdles in terms of money mobilisation. 

Independently of the success of this initiative, the Secretary-General did the right thing. He must be the moral voice of those who are too far from the wealthy and the powerful to be heard.