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NewEconomicThinking
NewEconomicThinking·August 23, 2020

The Pandemic's Unmasking: Global Solidarity, African Development, and the Future of Economics Amidst COVID-19

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Summary

Dr. Fatima Denton, Director of the Institute of Natural Resource in Africa at United Nations University, discusses the profound implications of the COVID-19 pandemic in July 2020. She highlights an unprecedented global solidarity that emerged, revealing the interconnectedness of our "global village" and the multi-dimensional nature of global problems, extending beyond health to social, economic, and environmental issues. Denton advocates for leveraging this newfound solidarity to tackle other pressing challenges, particularly climate change, contrasting it with the prevailing populist nationalism and protectionist tendencies that threaten international collaboration.

Denton provides a nuanced perspective on the pandemic's impact on the African continent, noting the decisive and preemptive actions taken by African leaders despite nascent and often weak health infrastructures. She attributes the initially lower fatality rates to Africa's young demographic but warns that the full extent of the pandemic's impact is yet to be seen, with numbers rising in several countries. She also points out that African nations learned from the experiences of other regions, implementing rigorous public health measures like mask-wearing more thoroughly than some Western countries. The discussion touches on the tension between protecting human life and spurring the economy, a dichotomy Denton views as false, asserting that people are fundamental to any economy's success.

She calls for a fundamental rethinking and revamping of the current economic model, moving away from a singular focus on "growth at all costs" (measured by GDP per capita) towards inclusive economies that prioritize human welfare and well-being. Denton highlights how African governments, despite high indebtedness, implemented safety nets like food supplies and utility support to protect their most vulnerable citizens, demonstrating a commitment to human life over purely economic metrics. She emphasizes the critical role of revisiting the social contract and fostering strong social support systems and kinship, especially in contexts where governmental infrastructure and services are limited.

Finally, Denton addresses the intersection of the pandemic and climate change, urging the world to seize the opportunity to "build back better" by integrating climate action into economic recovery plans. This involves shifting away from unsustainable practices and embracing green trajectories, such as renewable energy, despite the economic dilemmas faced by hydrocarbon-dependent African nations. She stresses the need for global patience and indulgence with Africa, given its minimal historical contribution to greenhouse gas emissions, and advocates for homegrown solutions and skill development. Denton concludes by critiquing traditional economics for its failure to predict major global disruptions like financial crises and pandemics, highlighting a lack of preparedness that has left both rich and poor nations vulnerable.

Key Quotes

"one thing that this pandemic has actually revealed is the the fact that we we do live in a global village and therefore this being a global village a lot of the issues that we will have to grapple with must be done in that way that is inclusive and that draws people closer and that we can't really silo the responses"
"I wish we can borrow some of the the principles of you know enlightened self-interest and we can take them along with us when we're negotiating the Paris agreements"
"it's not time for nationalist retrenchment and decoupling when the possibilities from collaboration are both essential and beneficial"
"the saving grace in Africa is has been the young population because as you know this is a continent where you know most of the people are below 25 or 60 percent I'd say of the population of below 25 years of age"
"the Ghanaian head of state said it right he he said that we I mean we know how to bring the economy back to life what we don't know is how to bring people back to life"
"I fundamentally believe that our economic model as it stands today needs to be revamped and rethought and re-imagined because this growth at all costs you know you know sometimes doesn't really make sense"
"this pandemic has also revealed especially in Africa is the value of kinship you know the value of I mean even though people had the social distance you know but you very much rely on others those sort of communal relationships"
"climate change has been called a planetary emergency and I do feel that where Africa is concerned to a large extent I would say it has been in an emergency ward for a long time on on several issues on climate change on energy poverty and now they've scored 19."
"Africa's part in this environmental mess that we find ourselves in is quite limited you know its share of carbon greenhouse gas emissions is very limited less than less than five percent"
"I feel that economics have not been very useful in predicting some of these big sort of global planetary disruptions that we have seen"

Concepts

Themes

  • Interconnectedness and Globalization
  • The Future of International Cooperation
  • African Resilience and Development Challenges
  • Reimagining Economic Models
  • The Role of Governance and Trust
  • Climate Change Urgency and Green Transition
  • Humanity vs. Economy

Related to:

Geopolitics Insights

Historical Period

  • July 2020 amidst the COVID-19 pandemic

Key Figures

  • Fatima Denton
  • Rob Johnson
  • Joseph Stiglitz
  • Dani Rodrik
  • Ghanaian Head of State (unnamed)

Countries Involved

  • Ghana
  • South Africa
  • Nigeria
  • Angola
  • Algeria
  • Libya
  • India
  • China
  • United States
  • Italy
  • France
  • England
  • Europe

Geopolitical Mechanisms

  • Global solidarity
  • Populist nationalism
  • International cooperation
  • Regional organizations (ECOWAS)
  • Market relations
  • Colonial legacy

Economic Models Critiqued

  • Growth at all costs
  • GDP per capita focus
  • Traditional economics' predictive failures

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