It is argued that it is the time to revamp the economy on new patterns. What could they be? Discuss.
The COVID-19 catastrophe has challenged the tenets of economics that have dominated public policy for the past 50 years.
There is a need to revamp the economy on the following lines to build a more resilient economy and a more just society.
One, De-Growth- The obsession with GDP as the supreme goal of progress has been challenged often
Now, Nobel laureates in economics (Joseph Stiglitz, Amartya Sen, Abhijit Banerjee, Esther Duflo and others) are calling upon their profession to rethink the fundamentals of economics, especially the purpose of GDP and the Goals for human progress must be reset.
Two, boundaries between countries are good. Boundaries may impede flows of trade, finance, and people. But since countries are at different stages of economic development, and have different compositions of resources, they must follow different paths to progress.
Third, the government’s role is very crucial for justice and dignity and for citizen’s welfare
Fourth, competition must be restrained and collaboration should be promoted as it is essential for progress.
Fifth, intellectual property should belong to the public. Because intellectual property monopolies are producing enormous wealth for their owners, though many were developed on the back of huge public investments.
The paradigm shift necessary after the crisis will not be easy.
There will be resistance to shifts in social, economic, and political power towards those who have less from those who have more within the present paradigm.
