THE Covid-19 pandemic has imposed economic and broader development challenges as never before.
Job losses, reduced income and lack of access to social protection have pushed many back into difficulties, with the consequence of rising inequality.
To avoid the devastating consequences of such shocks in the future, policymakers need fresh thinking and strategies to improve the resilience of economies, that is, the ability to absorb various shocks and adapt to changes and prevent systemic breakdowns.
Rather than looking back, policymakers should start anew. Instead of turning on the old “doomsday machine” that churns out respectable gross domestic product (GDP) growth figures but struggles during a crisis, they should now “build forward” towards a more resilient, inclusive, competitive and sustainable economy.
There is a need for “bold and radical” reforms.
A way to build forward is to strengthen the local economy. It is nothing new. It has been happening for many years. Community leaders’ primary approach is to grow the local economy through a traditional strategy. Their emphasis is on movement rather than growth. Their focus is on attracting and retaining companies by offering tax incentives, workforce development and infrastructure improvements.
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