The coronavirus in the long term will lead to a slowdown in globalization and urbanization, an increase in the rate of digitalization of the economy and an increase in government power. This is evidenced by the results of a study by Credit Suisse Research Institute, which was submitted to Lentu.ru a>.
Analysts have identified the main trends that reveal the true impact of the pandemic on humanity. In their opinion, globalization will not stop, but will slow down even more. The main focus will be on regional diversification, relocation of production to neighboring countries, and stability rather than profitability. This will open up opportunities for “cheaper” producing countries closer to major consumption centers such as the United States, Europe, China and Japan.
Another consequence of the pandemic will be the decentralization of economic activity in developed countries and the growing popularity of remote work. The coronavirus has shown that company employees can perform duties at a greater distance from the city and office. As a result, rural areas and small cities will become more attractive for life, analysts say.
“Despite the possible slowdown in urbanization, it is premature to talk about the end of the era of big cities. History shows that cities can recover from the crisis, but they will need some changes that will increase their resilience,” – says the study. The pandemic could kickstart educational technology, and lifelong learning itself will be key for everyone and will focus on creating an adaptive workforce as well as developing skills that emphasize the advantage of humans over machines.
Analysts note that the coronavirus has hit the poorest populations disproportionately. Overcoming inequality will remain the primary goal of governments around the world in the coming years and could lead to new redistributive taxes, triggering capital and labor drain in response. Another consequence of the pandemic was the strengthening of state power. Its broader mandate will continue after the end of the crisis, delivering the desired change, but this will increase the risk of undermining market dynamics and individual accountability. At the same time, surveillance and collection of personal data enable states and companies to become information empires. Comprehensive privacy protection will matter more in the future.
Earlier in UN said that due to the consequences of the coronavirus, the world could face the worst economic downturn in 80 years. The organization’s secretary general said that the social and economic damage from the pandemic is enormous, and there is no vaccine that could correct the damage already caused. He pointed out that the reason for this was inequality in society and social injustice.