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.
Monday, 13 April 2020
Sunday, 12 April 2020
Dreaming ahead
I have been asked that question, but
I try not to respond to it. And then, they ask it again, my opinion about which
country is likely to gain from the current dreadful crisis, in terms of
geopolitics and dominance. They want me to say China, others they expect me to mention
the possibility of an open confrontation between China and the US, and some
people are ready for an answer that would foretell the end of the European
Union. All this is very negative. There will competition after the crisis, as
there has been before it, but I think it is too far-fetched to predict war or
the demise of the EU.
Competition aside, the crisis
underlines the need for a greater level of international cooperation and
complementarity among the nations. We live in an extremely interconnected world,
as we can see from the expansion of the pandemic to every corner of the planet.
Unfortunately, some leaders are not getting the message. They have decided to
fight a global threat through erecting national barriers. My hope is that this
will be challenged once the crisis is over and that we will be able to make it
clear that it is better to cooperate. That is certainly a debate that must take
place at that time. We should not go back to the past.
Competition has been the model. We must
go beyond that. Call it history. As we look into the future and learn from
today’s difficulties and consider the next challenges, including the
environmental one, we should be moving towards a new stage, that will put the
emphasis on joint action and human cohesion. That could be one of the positive
results of the present-day drama. It is idealistic, I accept the observation,
but we must base ourselves on new dreams.
Saturday, 11 April 2020
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.
Friday, 10 April 2020
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:
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.
Thursday, 9 April 2020
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.
Wednesday, 8 April 2020
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.
Monday, 6 April 2020
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.
Sunday, 5 April 2020
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.
Saturday, 4 April 2020
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.
Friday, 3 April 2020
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.
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