Following the 2008 financial crisis, many policymakers failed to focus sufficiently on securing robust, inclusive, and sustainable long-term growth. To avoid repeating this mistake in 2021 as the world emerges from the COVID-19 pandemic, governments must act early and decisively in three areas.
CAMBRIDGE – For people around the world, arguably the greatest hope is that 2021 will be a year of beneficial transformation: rapidly recovering economies, firms eager to pivot to offense with “resized” business models, and governments talking about “building back better.” The risk, as yet insufficiently appreciated, is that decision-makers will end up spending most (and too much) of the year dealing with both existing and new damage from the COVID-19 shock.
CAMBRIDGE – For people around the world, arguably the greatest hope is that 2021 will be a year of beneficial transformation: rapidly recovering economies, firms eager to pivot to offense with “resized” business models, and governments talking about “building back better.” The risk, as yet insufficiently appreciated, is that decision-makers will end up spending most (and too much) of the year dealing with both existing and new damage from the COVID-19 shock.