Coronavirus, Covıd-19, G7, Summit, Climate Change

Coronavirus, Covıd-19

Commentary: G7 meeting can be a turning point in pandemic recovery

Commentary: G7 meeting can be a turning point in pandemic recovery

11/6/2021 8:08:00 AM

Commentary: G7 meeting can be a turning point in pandemic recovery

G7 governments have a responsibility to lead the post-pandemic recovery and creation of a healthier global economy, says economist Nicholas Stern.

BookmarkLONDON: At the upcoming G7 summit in Cornwall, the major economies’ leaders have a critical opportunity to agree on a plan that not only drives a strong recovery from the COVID-19 pandemic for their own countries, but also speeds the transition to a more sustainable, inclusive and resilient global economy.

Commentary: Singapore sports must learn lessons from Schooling's decline No opaque doors or access to private rooms among tougher rules for converted KTVs wishing to resume operations This Week’s Best-Dressed Local Stars: Jul 24-31

A key lesson that I trust G7 governments have learned from COVID-19 is how exposed and vulnerable every country is to global threats, including infectious diseases, climate change and biodiversity loss.AdvertisementAdvertisementThe challenges to well-being and prosperity highlighted by the pandemic are all interconnected, so we need an integrated approach to tackling them. The G7 has a special responsibility to lead here.

Rich-country leaders will understandably focus on the health of their own economies, which are showing signs of a rapid rebound.But they should recognise the need for significantly increased investment over the next decade to enable strong and sustained growth, and to respond to climate change and the loss of natural capital, including biodiversity. Countries should not repeat the mistake of the post-pandemic “Roaring Twenties” a century ago by focusing primarily on consumption. headtopics.com

AdvertisementAdvertisementREAD: Commentary: The global minimum corporate tax rate is coming our way and will change how Singapore attracts MNCsNEED FOR G7 INVESTMENTA recent pre-summit report requested by the United Kingdom’s prime minister, Boris Johnson, shows that G7 investment as a proportion of GDP prior to the pandemic was at its lowest level for several decades.

In some countries, such as the UK, a drop in investment after the 2008 to 2009 global financial crisis largely explains the following decade’s sluggish economic growth.AdvertisementOur report recommends that the G7 should collectively invest an additional US$1 trillion per year, relative to pre-pandemic levels, over the next decade to drive a sustainable and sustained recovery.

While most of this increase, equivalent to 2 per cent of these countries’ combined GDP, will come from the private sector, governments must set policies and expectations to encourage it, and must themselves be ready to invest, particularly over the next couple of years.

Britain G7Over the longer term as well, G7 governments should be prepared to borrow to invest in order to boost growth and lay strong foundations for a green industrial revolution. Ambition is less risky than caution, because weak investment will mean an anemic economy. headtopics.com

Safe-distancing ambassadors ‘not typically deployed’ to converted KTVs, checks done by enforcement officers, auxiliary police: MSE, MHA The Big Read: Students' silent cry for help, as Covid-19 fallout erodes parental and peer support for some Sailing: Kimberly Lim and Cecilia Low finish 10th overall, first Singaporeans to qualify for medal race at Olympics

But this does not mean that finance ministries should abandon fiscal discipline. Rather, they should ensure that public finances are directed toward high-quality investments that can create sustained growth and build tax revenues.Get CNA’s Morning Brief newsletter

Start your day informed with our Editor’s pick of what you should read and watch.Invalid email addressIt looks like the email address you entered is not valid.Try AgainThis service is not intended for persons residing in the EU. By clicking subscribe, I agree to receive news updates and promotional material from Mediacorp and Mediacorp's partners.

Sign me upA commitment to sustainable public finances over this decade will foster investment as long as premature austerity does not choke off demand.READ: Commentary: Advanced economies must not drag feet in global vaccination effortINVESTING IN SUSTAINABILITY AND DEVELOPING COUNTRIES

Our analysis shows that investment opportunities in sustainable infrastructure and nature offer particularly attractive returns. The G7 countries should thus accelerate the decarbonisation of their economies by phasing out fossil fuels and replacing them with zero-emissions energy, transport, industry and agriculture. headtopics.com

For example, the G7 could pledge to ensure that 80 per cent of their electricity is generated from zero-emissions sources by 2030. They could adopt net zero standards for all new buildings from 2024 and aim to install 100 public electric vehicle charging stations for every 100,000 people by 2023.

These countries should also be investing much more to protect and restore nature on land and at sea, as well as in productive and sustainable agriculture.READ: Commentary: Besides talking about responsibility, global collective climate action should also be a focus

Adulting 101: My first BTO flat — a home to sink roots and build a family or a money spinner? 117 new locally transmitted Covid-19 cases in Singapore, including 42 unlinked infections and 26 new ones in Jurong Fishery Port cluster Sailing: Kimberly Lim and Cecilia Low finish 9th overall, first Singaporeans to qualify for medal race at Olympics

But G7 leaders also need to recognise that their economies will recover fully only if growth is restored in the rest of the world. That is because most of the global demand over the next decade will come from emerging markets and developing countries.

The G7 must therefore work to mobilise finance and foster investment in these economies. Because no country will be safe from the pandemic until it is under control everywhere, the most critical and urgent need is to make up the shortfall in financial support for the COVID-19 Vaccine Global Access (COVAX) facility and promote production and sharing of vaccines.

All countries should have access to effective COVID-19 vaccines and the means to immunise their populations.The first Covax shipment landed in Ghana on February 24 AFP/Nipah DennisFurthermore, rich countries need to help developing economies with their external debts and access to finance through sources such as special drawing rights (SDRs), the International Monetary Fund’s reserve asset.

Without such assistance, the world risks suffering a lost decade of development and failing to realise many of the United Nations Sustainable Development Goals.READ: Commentary: China’s foreign loans, as a recent study shows, is full of ‘Chinese characteristics’

TOWARDS A HEALTHIER GLOBAL ECONOMYThe G7 must also ensure that rich countries belatedly fulfill their commitment – made in 2010 – to mobilise US$100 billion per year from public and private sources by 2020 to help developing countries tackle climate change. They should seek to raise the annual amount substantially by 2025 and increase the concessional component.

This possibility, together with additional SDRs, the expansion of lending by multilateral development banks, and the use of resources that previously supported fossil-fuel investments, highlights the scope to mobilise more funds for poorer countries without overburdening public finances.

The crucial UN climate-change summit (COP26) in Glasgow in November risks failing if the rich world does not honor its financial commitments to developing countries and carry them forward to 2025.For this reason, the G7 gathering in Cornwall could be a turning point, not only in the recovery from this terrible pandemic, but also in the creation of a much healthier global economy.

Nicholas Stern, a former chief economist of the World Bank (2000 to 2003) and co-chair of the international High-Level Commission on Carbon Prices, is Professor of Economics and Government and Chair of the Grantham Research Institute on Climate Change and the Environment at the London School of Economics and Political Science.

Read more: CNA »

At least 25 dead as rains deluge central China's Henan province

Biden arrives in UK for G7 summit, part of 8-day Europe tripUS President Joe Biden arrived in Britain on Wednesday (Jun 9) on his first trip abroad since taking office, an eight-day mission to rebuild ...

Analysis-G7 global tax plan may hit corporate titans unevenlyAn agreement by wealthy nations aimed at squeezing more tax out of large multinational companies could hit some firms hard while leaving others - ...

G7 to donate 1 billion COVID-19 vaccine doses to poorer countriesBritish Prime Minister Boris Johnson expects the Group of Seven to agree to donate 1 billion COVID-19 vaccine doses to poorer countries during its ... By end of 2022. Not good enough.

G7 to donate 1b Covid-19 vaccine doses to poorer countries

G7 to donate 1 billion COVID-19 vaccine doses to poorer countriesBritish Prime Minister Boris Johnson expects the Group of Seven to agree to donate 1 billion COVID-19 vaccine doses to poorer countries during its summit starting on Friday, and help innoculate the world by the end of next year. Just hours after U.S. President Joe Biden vowed to supercharge the battle against the coronavirus with a donation of 500 million Pfizer shots, Johnson said Britain would give at least 100 million surplus vaccines to the poorest nations. Some campaign groups condemned the plan as a drop in the ocean, with Oxfam estimating that nearly 4 billion people will depend on COVAX for vaccines, the programme that distributes COVID-19 shots to low and middle income countries.

'My foggy glasses solution helped me through Covid'Alex Wickens explains how a business idea during the pandemic restored his hopes for the future.