Tuesday, 12 May 2020

THE PRICE OF GREATNESS IS RESPONSIBILITY

This headline quote from Winston Churchill says all about the current global pandemonium in leadership crisis. We are staring at a black hole that by its indecisiveness could harm more, worse still when they shift goals every day. We have our favourites in most countries where mediocrity competes to decide the best path. What results do we expect from most?

 

In the din of the constant up-and-down of corona-virus news, both from scientific world and the financial centres of the world, it’s easy to lose sight of the scariest scenario that is staring at our face, we are getting blind sighted by the enormity of the problems that is bigger than anything that we have seen in our lifetime.

 

There’s no magic bullet fired by a Knight in shining armour that will wean away our predicament and dispel the clouds of concerns with a ray of hope. We have to look at the despair with a glint of hope that is the only way to moderate expectations. But notwithstanding the gloom around virus, we mustn’t give up looking for hope. Human civilisation has evolved around that just one word- Hope.

 

What happens then, when efforts of thousands of Scientists, Epidemiologist and Medical Professionals fail in a few initial attempts? Will they get busy reinventing the vaccine again? Yes, they will, enterprise is part of human DNA- etched eternally. Realism demands every confluence of event that could occur with reasonable probability has a tinge of Hope. No virus has ever been able to kill it -in the past, now and also in future as well.

 

To me, it is a anecdotal reality that there could be no effective Covid-19 transformative therapy that could pass human trials with risk-rewards in favour in next twelve months.

 

Most Governments have planned for the worst-case scenario, some with deeper studies and some just follow without delving in details of the fallout during those apocalyptic hours- as that possibility could never be ruled out. The Governments those are ill prepared with a plan for COVID-19 would face a major governance failure and erosion of faith in them world over. The world is facing its worst socioeconomic downturn in last hundred years. Closed factories, quarantines and global lockdowns have caused economic activities & livelihood to collapse.

 

The grim reality, underscores the magnitude of the shock, which the pandemic has inflicted on both advanced and developing economies and the daunting task that policymakers face in containing its fallout. It is an arduous journey ahead for all. The world still looks like a killing field where a funeral has also been a luxury for the victims of Covid-19. Most of us cannot recall anything like this in our lifetime. 

 

Incentives to industries and people can work only to a point – but this life threatening fear of infections inhibits people to come out of a mindset that is overwhelmed with memories & news of acute traumas. The human mind is psychologically affected that would need to be de-scarred in millions by counselling and instilling confidence to get back their lives. We hardy consider psychosomatic afflictions as an illness needing similar consideration as any other illness that humans grapple with. Insensitiveness to others plight is also a serious malaise that our societies now need to get aware of and act on it with compassion. For healing societies & nations, we would now need millions of volunteers to console and handhold the world, country by country, that has lost hundreds and thousands of lives of near and dear ones across all continents. This trauma still continues unabated.

 

Country after country that are considered as citadel of solidity and invincibility currently are showing cracks in their walls and resorting to panic button by hoarding medicinal supplies, basic essentials, controlling food supplies and insulating people from global travels, the crisis seriously has impeded growth and would reverse decades of gains that accrued from globalization. Ring fencing, a country & states within, would be more harmful than a measured unwinding of the economy & society. In coming days, global leaders would be compelled to take this choice, as economic imperatives would leave no choice but to let go such controls. Several European countries are now resorting to it already, including some of the worst distressed ones; we would know the depth of the rut from the path taken by them. We have little choices as of now. Options are limited and risk-rewards are equally loaded with potency to swing both ways.  

 

Our best hope to kick-start the economy lies in the hope of believing in herd immunity and as it happens, which it should, more and more people would get immune to COVID-19 and fewer fatalities would happen. This is a hope and assumes better case circumstances based on past episodes of pandemic. Eventually, lockdown cannot be perennial and sensing this, many global leaders would now start to advocate this postulate of herd immunity & for that we have no empirical and anecdotal evidences from current crisis, but history supports such plausibility during pandemics, depending on the acuteness of it, time span may vary. The time for soft selling the idea of herd immunity is ripe.

 

The magnitude and speed of collapse in activity that has followed the pandemic is unlike anything experienced in our lifetime. No country & its leader can sit tight on it. Proactive steps would also decide the emerging leadership that is under the lenses globally. Considerable uncertainty remains as the health of the economy will be dictated by a single vector- the trajectory of the virus. The undercurrent would be still palpable & nervous globally. If the pandemic persists into the second half of the year, which it likely should, despite Governments are avoiding admitting it, the global economy contraction could be several times more damaging and the anticipated rebound in 2021, as wider consensus, could fail to materialize if additional waves of the virus spread later in the year.

 

Just take top three economies of USA, China and Japan going into a negative growth rate by just 2% on an average, which is most certain, then GDP of those countries would shrink by at least 8 trillion Dollars in negative from a projected positive growth of 12 trillion Dollars in similar timeframe. This excludes likely negative contribution by Germany, India, South Korea and rest of 20 countries that also have nearly 40% contributions to the global GDP. The other 173 countries, outside the top 20, make up less than 22% of total global economy. It means that we not only are going to give away the gains that we should have normally done, but would also lose about twelve trillion Dollars as an overall GDP shrinkage globally. This would make the world go in a tailspin and trigger many social chaoses worldwide.

 

The impact of economic collapse, which is visible to me and should be to most of us at this point of time, would be unlike anything we have ever seen in history. All of this just because of an invisible enemy that world has not been able to overcome as yet.

 

The minimisation of the pandemic impact would need a calibrated response from global leaders. This could mean relook at global governance issue and protection of national industries & businesses that despite incentive would find it hard to avert bankruptcy & collapse. It would naturally mean loss of livelihood for millions across the globe. None can remain insulated from it- some less, some more.

 

It would also raise conflict and parallel realities that have portrayed different manifestations from different perspectives. The necessity of fostering international cooperation would be an imperative that would be a compelling need to stave off a common enemy. It also means that presently there is no common mechanism in the global arena for a growth consensus as I do expect undercurrent of hatred and backlash to decouple national economy from a global supply chain. It is very likely that the new economic order emerging would be country specific and individual countries in the west would significantly invest in capacity buildings.

 

The inability of global bodies, like UNO & its arms, WHO, World Bank, WTO and other bodies out of multilateralism cooperation have failed the world and are losing their grip for consolidation in a post Corona world where global funding to them is bound to shrink. If it does, then the structures & modalities would be very different and would emerge finely tooth-combed from the domination of a few countries at such global bodies. So would be challenged the veto mechanism of the UN Security Council. Today it has only stifled world progress and emerging leadership’s stakes for a wider participation by the rogue nations that have been sanctioned veto powers decades ago.

 

Today the world is sitting on a ticking time bomb, for that the plug is not yet pulled, but an economic pandemic never seen in the history is not remedied, then the force of implosion would fragment and lacerate the world with noncooperation from economic activities, that would see massive unemployment, massive business failures in MSME & MSE and significant contractions of large businesses that would put many in the poverty abyss in developed countries as well.

 

World & countries have hardly any option to chose, but to allow opening of the economies, despite the risk of lives & to pin its hope on herd immunity to move the wheels to restore normalcy over a period of time. Otherwise, the genesis of economic apocalypse written in history would not have a Noah’s Ark to salvage the world and its population.

 

Today economic acceleration is the pivot that decides wellness than any other vector that measures a prosperous society and a country. Any slippages of that is a social moribund that pushes the other social markers worse much rapidly. This time this pandemic and its economic force would not spare anyone and any nation. People would have more expectations from their governments and failure to deliver would see a political upheaval globally that helps emerge a new leadership with new hope and fresh horizons.

 

Failure to do so would also shift topic of discussion as poverty in poor and emerging economies would no more be discussed, but it would be talking point in developed nations as well.

 

World orders are getting redefined and in coming months & years & would also set a new leadership matrix, where weaker nations would be more vociferous and demanding than to be sold to the lollipops.

 

The hegemony of dominance would witness a war of attrition and one of defiance that can be only be bridged by trust that world would find it hard to find in current world order. Therefore, we are staring at a cautious world where countries would not be defined by groups & zonal sectors, but the forthrightness to restore global confidence. We would witness titans falling by the waysides and hope would be the driver that leaders must espouse and demonstrate by assertive actions. Talking parrots of the world, my country also leads in this, would not be given any further option to lead the world and nations, nor any trust be reposed in rogue nations & its leaders. They have done more than enough damage already to the world.

 

Indeed we are transcending through an epoch time that is bound to rewrite world history where we have defined a villain but have not yet found a hero.

 

The search is on.

 

12 May 2020


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