Dr. Jeronim Capaldo, an Economic Affairs Officer in the UN Division on Globalization and Development Strategies at UNCTAD, said that the macro-performance had been the fundamental driver of trade, especially when fiscal policies have a different role to play than in the previous crises.
“One way to look at possibilities for recovery is to put work at the center of post-pandemic economic development. We need to organize an entire array of macro-economic policies, and re-organize them around income,” said Dr. Capaldo. He also emphasized the need to sustain spending, which is one of the significant determinants of employment growth.
According to Dr. Capaldo, monetary policy has been flooding the global economy with a lot of credit, which has brought relief to many balance sheets. “Congruently, they have encouraged the short-term illusion of the possibility for recovery. We need to think beyond this, as it might produce financial bubbles, rather than a sustained income,” he said.
He also said that the constraints on financial policies have also led to an unbalanced development of global economies, which has made them unfit to deal with economic crises, including the Covid-19 pandemic. He also underlined the importance of more progressive tax policies. “It influences the ability of some individuals and corporations to accumulate tremendous financial funds is also what enables large investments and rent-seeking; namely, capture,” Dr. Capaldo said.
Delivering the concluding remarks, Director-General of the TRENDS Research & Advisory, Dr. Mohammed Al-Ali, said that the research center assembled 20 well-known experts from major economies, who signaled the various Covid-19 implications on the global economy and evaluated the varying responses to it.
“They made projections about the future of the economy and provided adequate recommendations. TRENDS Global Economic E-Forum will be an annual event. It will continue to discuss the main economic issues and trends facing the global economy,” Dr. Mohammed Al-Ali said.
The next TRENDS event – A Global Anti-Covid-19 Treatment: Between Development Efforts and Regulatory Protocols – will be held on August 26, 2020, at 7 pm UAE time. All sessions of the Global Economic E-Forum were live-streamed via TRENDS YouTube channel and other social media platforms.
TRENDS Research & Advisory strives to present an insightful and informed view of global issues and challenges from a strategic perspective. Established in 2014 as an independent research center, TRENDS conducts specialized studies in the fields of international relations and political, economic, and social sciences. It undertakes rigorous analyses of current issues and international and regional developments, especially in the Middle East and North Africa.
The Center analyses opportunities and challenges at various levels of the geopolitical spectrum. It evaluates scenarios and prospects to find scientific and objective answers and seeks to influence the decision-making process. TRENDS Research & Advisory aims to champion national and regional causes and build a strong network with research centers, organizations, and institutions around the world. It also seeks to benefit from the expertise of international research and academic institutions.