Turning

Crisis into
Opportunity
How Global Economic Institutions Can
Use COVID-19 to Address Global
Challenges
Summary of the article
 The writer, Nicolas Verbeek argues that the
COVID-19 crisis as a chance of improvement for
global economic institutions
 GLOBAL ECONOMIC INSTITUTIONS
 G20 – European union + 19 member countries
 WTO- World Trade Organization
 IMF- International Monetary Fund
 WB- World Bank
 These institutions together with political support
can help facing three major global challenges such
as COVID crisis, Climate change, Global
Inequality from their impacts such as "Socio-
economic disruption, poverty, inequality and on
well-being". 
 He also aims at advanced economies support for
COVID-19 mitigation, sustainable recovery
reforms, deployment of global economic
institutions.
Nicolas Verbeek's Viewpoints
for Sustainable Recovery
PRIMARY OBJECTIVE
 IMF and WB contribution raise:
 Framework of fair taxation
 Sustainability in recovery phase of EU, G7 and
public development banks
 Drawbacks:
 Multilateral cooperation in distributing COVID-
19 vaccine 
 Reallocation of capital is necessary
 Overcome obstacle: 
o Role of state government grown 
o State's interest to strengthen international
cooperation to face the challenges
 By the end of pandemic in Nicolas's view
 National-level approach is a disaster
 COVID-19 vaccine is needed from UN, G20 or
other places
Crisis reinforces in combating the issue of climate
change and to implement reforms during recovery
PARIS AGREEMENT: Paris Climate Accords, an
international treaty on climate change (2015). It
covers climate change mitigation, adaptation,
finance.

Do you agree with the

views of the author?

YES
 He talks about the benefits of these programs
and the various reforms that will lead to them.
  Apart from this he shares with us various
proposals that can arise from the global
institutions. 
 In the end he also clarifies the need of taking this
steps towards success in combating COVID-19
crisis together with climate change and global
inequalities.
 Know-how?
• Creation of economic institutions includes
economic advantage and free trade. Countries
could be penalized if with unfulfilled own
commitments. Creation of sector-specific
climate clubs with G20 or intergovernmental
institutions.
• IMF, WB, IFIs can support for environmental
norm spread and linkage of
environmental policy with co-benefits.
• Carbon border adjustment in WTO:
Dwelling of climate-friendly, higher costs
products in free markets rather than cheap,
unfriendly products.
• Carbon tax: Includes carbon pricing and
elimination of fossil-fuel subsidies through
government support. Also low prices for fossil
fuels after the crisis.
 • Roadmap:-
Timely commitment to a global target of net zero by
2050 as benchmark for climate action
Making green and sustainable recovery of global
cooperation
• COVID crisis has made clear that
INEQUALITY between developed and developing
nations and within countries
• IMF and WB protect health and economic crisis
By technological change (digital technologies), it's
benefits in markets are unequally distributed leading
OLIGOPOLISTIC COMPETITION
NEEDS!
1)Growth of monopolistic structures through
regularity reform and stronger antitrust
enforcement
Broader capital ownership
Reform corporate government 
Corporate government: Collection of mechanisms,
processes and relations used by various parties to
operate corporation
2) Broader diffusion of technologies
Reform of patent regime
Effective use of public investment and tax policies
3) Tax system favor capital over labor or work
4) Programs:
 Digital infrastructure
 Digital literacy
 Wider education and training
 Worker upskilling, reskilling, lifelong learning
 IMF OR WB: 
  Retraining programs
 Lifelong development
 Information
 Broader labor protection

5) Workers mobility with fast access to new jobs

Social safety nets to be overwhelmed
6) IMF/WB:
 Creating International corporations
on tax matters
 Diversification of trade relations
 Overhaul of tax system
 Diversification of supply chains
NECESSARY REFORMS
1)Incorporate a mechanism that systematically
adjust IMF lending capacity as 1 trillion dollars
insufficient for crisis like COVID-19
2)IMF's Special Drawing Rights (SDRs) should be
applied systematically.
New mechanism to redirect unused SDRs
3) Bilateral swap agreements systematically available
to EMDE
EMDE: Emerging Markets and Developing
Economies
Emergency liquidity assistance
4) Updated WTO agreement
 Cross border data flows
 Services
 Intellectual property rights
 State enterprises
As a start step, by making new trade agreement
between China and US.
India's performance
on mitigation this
Covid-19 pandemic
 Social distancing and lockdown
 Lockdown effect
 Screening and surveillance
 Cluster containment
 Public awareness to contain
COVID-19
 Testing, Vaccine trials and therapy
 Quarantine centers
 World Collaboration to fight against
COVID-19
 Financial support for people
 GOOD THINGS CAN
COME OUT OF PANDEMIC
1)Leaders have learnt to trust employees:
Management teams and employees have banged
together to create virtual environments that are
not only productive and successful but also
enjoyable.
2)Businesses have learnt how to think
differently: Businesses have created new business
models. For instance, restaurants offered 'drive-
through dinners' that allows families to collect
their food without getting out of their cars. 
3)Technologies embraced in new ways: 
o Face-face interactions for employees across
worldwide companies
o Virtual dental consultations
o Virtual schooling
o Virtual training, fitness programs, nutrition
courses, yoga training
4) Life has slowed down just a bit: 
Spending more time with family
Time to phone a long lost friend or relative
Video conferencing
Reconnecting to friends you haven't talked
long time
5) Learnt who and what matters to us the most: 
o Physical fitness
o Trying new and healthy recipes
o Discovered new skills
o Self-care routines
6) We have thought more than just ourselves: 
Helping neighbors
Helping COVID patients
Donation 
Submitted by 
AARTHI KANNAN
SEC 19 AB
GEC 6000
CONTEMPORARY WORLD
Submitted to Mr. Cesar
Mercado