Monday, 20 April 2020

A New World Order?

Will the pandemic that we are experiencing be a turning point in world history? Or, will everything revert to the way it was before? The Covid-19 pandemic has revealed many weaknesses in our global system. Forbes @ 10 predicted there would be a true restructuring of the global system. The first 10 are from Forbes while the last two are our assessment of potential changes:

1. Shift in the balance of world power

The United States, for all its power, wealth, and technological might, has proved to be as vulnerable as any other country. The absence of US global leadership in response to the pandemic is a risk to its global standing. Trump’s ‘Make America Great Again’ has now had the opposite effect, America is small in its perspective and has reacted like a third world nation in this pandemic.



2. Highly-automated production infrastructure

Not only saving energy and lowering production costs, highly automated infrastructure improves quality. It will also allow businesses to carry on without interruptions should a crisis hit again.

  
3. Increased confidence in technology

Consumer behaviour is changing. Consumers all over the world are staying home and shopping online. People are working from home and we are moving towards a future that could be free of brick-and-mortar offices at large. That has an impact on the property sector.

4. Long-term decrease in business travel

This is due to the emergence of video-conferencing tools. Also, high net worth individuals prefer to travel via private jet instead of first-class air travel. Air travel in general may decrease for a while and only the strongest and most innovative airlines will survive. Its not size that matters but cash available.

5. E-government/ Smart Government

Governments will introduce e-services throughout the region. For example, the UAE has continued to serve residents throughout the pandemic, including courts, immigration and passport services, ministries, and other various institutions. The Government is relying on the use of digital identity by citizens, blockchain systems, and chat systems to complete requests. The country has also developed a Smart Government National Plan – a government that never sleeps.



6. Healthcare Investment

More funds will be allocated for investing in healthcare after understanding the gaps in the global system for fighting the coronavirus. New tech start-ups will emerge with creative applications.



7. Trust in local governments will increase

Many governments have taken strong defensive measures to control the pandemic. But the real heroes have been the local governments and local communities coming together whether it is in Wuhan or New York. Support from Central Banks with injections of large sums of money into the banking system has helped local communities to survive. This, in addition to moratoriums and waivers have kept some businesses afloat.

8. Social change

There will be social change that recognizes the side of life that we might have been too busy to acknowledge before. The international community has joined together in global empathy to stand united. Philanthropic initiatives have been created and humanitarian aid offered as billionaires donated millions of dollars to help save people’s lives. We may be at the cusp of a new egalitarian view of the world.

9. Impact on environment will last

The slowdown in economic activity has led to a positive environmental impact, particularly in the air and water quality. Compared with this time last year, levels of pollution in New York have been reduced by nearly 50% because of measures taken to contain the virus. The Centre for International Climate Research in Oslo estimates that there will be a 1.2% decline in carbon dioxide emissions in 2020, using global GDP forecasts from the OECD.

Decline in nitrogen dioxide emissions particularly over the Po Valley in northern Italy.
Source: Severe Weather Europe

10. Transformation of education system

According to UNESCO, home-schooling programs have started to take effect. This has allowed parents to help in developing their children’s skills and discovering their talents. Studying remotely will enable emerging countries to improve the quality of education. New ways of delivering school or university programs need to be developed, especially for developing economies.  

Read more about Education During A Pandemic:

11. Focus on STEM

Many nations will emphasise on STEM as the gateway for artificial intelligence, biotechnology, nano research, cybersecurity and the like. The world will have a more productive work force in a shorter space of time.

12. Religion and Faith

Surprisingly more people will turn to religious leaders for answers while science works out the cause and effect. There may be many doomsday prophets, forecasting the end is nigh. But that may not happen for a while.

Dealing with pandemics, especially by staying at home has changed the lives of many people.  Social, economic, and technological developments all over the world may change with Covid-19 or its successor being around for some time. Hopefully, we as a human race will be more kind, less discriminatory and more loving in this brave new world.  


Reference:

1.     Khuloud Al Omian, Are We Witnessing The Awakening Of A New World Order? April 2020, Forbes @ 10
2.     Commentary: A post COVID-19 world and the limits of 'America First', 8 April 2020, CNA
3.     Marko Korosec, The #COVID-19 environmental factual effect over Italy: The nationwide lockdown leads to significant decline in nitrogen dioxide (NO2) emission, https://www.severe-weather.eu/
4.     UN lauds Ant Financial’s blockchain, M-Pesa for combating Covid-19 effects on economy, Ledger Insights

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