Will Covid-19 Remake the World? - Dani Rodrik
Dani Rodrik, Ford Foundation Professor of International Political Economy at Harvard's John F. Kennedy School of Government
with comments from Michael Jacobs, Professorial Fellow at the Sheffield Political Economy Research Institute (SPERI)
Covid-19 is reinforcing economic dualism within nations, the divide between technologically advanced and globally integrated parts of the economy/society and the firms, sectors, and regions that are lagging. This is producing: inequality, economic insecurity within countries, a backlash against hyper-globalisation, premature de-industrialisation and a slowing down of the EOI engine.
In response we need a new direction for policy: an updated welfare state model with investment in continuous education and training, social protection and flexible markets (“flexicurity”). A productivist “good-jobs” model with direct interventions in employment, production, and investment decisions to expand the supply of good jobs; redirecting innovation to the needs of workers and a collaborative, iterative model of co-operation with employers and other non-state actors.