Sustainable finance is very much in fashion nowadays as it is seen as one for the tools for slowing down climate change. But “sustainable finance” is more a catchword than a definition of a precise financial product or technique. What needs to be put in place in order to leverage the present enthusiasm around sustainable finance?
The coronavirus crisis and the restrictions on economic activity have threatened the livelihoods of many of the poorest families on the planet. To respond to this global crisis, some governments around the world consider how to expand their social safety net as many – especially women – in household or informal economy are left without any support. In this context, the idea of « universal basic income » has resurfaced in many places. Where does this debate stand today in your region? Has it been affected by the pandemic?
“Does the world need to contain China and how?
« A new allocation of a significant amount of SDRs to developing countries could be part of a global response to the pandemic, particularly in times when a private global currency (such as Libra/Diem) is about to be launched. What are the political prerequisites and what should be the magnitude of the next allocation to meaningfully alleviate the hardship of the developing countries? »
“What are the economic lessons that we (or the world) has to retain from the Trump era?“
For many different reasons, the pandemic not being the least, the world is facing many tensions and challenges. In this context, the incoming American administration might play a critical – in the primary sense of the word – role, for the best as well as for the worst. The new year 2021 is about to begin. Taking the pretext of the period of season’s wishes and greetings, we propose to draft a wish list that we could share with the incoming Biden administration, especially in the field of of economic objectives and policies, but taking into account also the regional priorities which are familiar to you
Observatoire de la Finance wishes you a mask-free Happy New Year 2021.
“Vaccines are in sight. How should the world cope with two related challenges which are both national and global. The first relates to intellectual ownership rights on patents and related royalties. The second to local distribution (free or not) and access priorities. Would it make sense to envisage setting up a world foundation, private-public partnership, linked or not to the WHO, to which could be entrusted all the rights to present and future COVID vaccines and which would allocate funding for research to private companies?”
« Recent estimates (ILO, OECD) show that the share of capital remuneration in GDP steadily grows worldwide, even if levels differ from country to country. With robotisation and increased use of AI, capital intensity of world economy grows while the share of labour remuneration tends to decrease. Are these trends sustainable, especially in times of pandemic urgency? »
“Should the present crisis be used by policy makers as an opportunity to leverage and accelerate the sustainability and climate change agenda even if it could imply a kind of national “industrial policy” with its potentially distorting effects on national and international market game? If yes, how governments should strike the balance between the aspiration of “back to normal” and the needs of accelerating structural adjustment for climate changes?”