A ‘perfect storm’ is underway in response to Kovid

People wearing protective face masks walk on the main shopping street in Munich, Germany, during the coronovirus crisis on 30 April 2020.

Alexander Hasenstein / Getty Images

LONDON – Some countries’ “inward-looking national agenda” in response to the coronovirus epidemic threatens global resilience in the wake of the crisis, suggested a panelist behind the World Economic Forum’s 2021 Global Risk Report.

Carolina Clint, leader of risk management for Continental Europe at Marsh & McLennan, told CNBC’s Geoff Cutmore on Monday that there were lessons learned in the cooperation needed to develop the coronavirus virus vaccine at an “unprecedented pace”.

However, he said that the “inward looking national agenda” of some countries was “of concern”.

His comment has been criticized by some wealthier countries for “hoarding” by campaigners to get more coronavirus supplements than they need, while low-income countries take enough shots to reduce their population Let’s fight. In December, a report by Amnesty International raised concerns about “vaccine nationalism,” naming the UK, US, EU, Japan, Canada and Australia, among the largest advanced buyers of vaccine supplements.

On Tuesday, Ellen Johnson Sirleaf, co-chair of the World Health Organization’s independent epidemic review panel, shared her disappointment, saying that “the current vaccine roll-out favors rich countries.”

Zombie companies; Asset bubbles

Clint said that “substantial” stimulus packages were injected by governments into their respective economies in immediate response to the pandemic, which is “the ongoing trend toward self-sufficiency intensified by Kovid-19.”

He said that if the incentive package was “not properly structured”, there was a risk of “commercial zombification”.

“So it’s really a perfect storm to brew here,” he said.

So-called zombie companies are considered backward businesses that need a loan to run and service their debt, or simply have enough to earn. This has been a concern in the midst of an epidemic with support from governments and central banks for businesses.

Similarly, Clint warned of an asset bubble – when an investment accelerates the price driven by market momentum rather than the underlying fundamentals – as another potential risk.

In the WEF’s annual annual financial report, rarely, infectious diseases were considered the most influential threat in the next decade. In comparison, the spread of infectious diseases in January 2019 was ranked as the tenth biggest risk in terms of potential impact over the next 10 years.

In its first global risk report in 2006, the WEF highlighted the risk of an influenza pandemic as one of four major risks. It warned that “the deadly flu, its spread facilitated by global travel patterns and unpublished by inadequate warning mechanisms, would present a serious threat.”

The annual report is based on the WEF’s Global Risk Perception Survey, completed by more than 650 members of the forum’s “diverse” communities.

In this year’s Risk Report, along with infectious diseases, along with a livelihood crisis, 60% of survey respondents were also named the top short-term threats to the world.

Clint stated that: “The Kovid-19 epidemic has changed the way we think about risk, raising awareness that disasters can potentially lead to mass deaths and that destruction can actually occur. ”

Extreme weather, climate action failure and human-led environmental damage were considered over the next decade by WEF survey respondents. This continued the trend from last year’s report, with all five being of environmental concerns about global long-term risks.

Along with employment and livelihood crises, digital inequality and youth disenchantment were listed among the most imminent threats to the world, with the focus of the report on the wider social gaps caused by the epidemic.


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