research report

Policy approaches to economic transformation From Broader reconstruction

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The highly asymmetric impact of the new pandemic has exacerbated historic economic inequalities within and among countries, and is now leading to a highly divergent recovery. The rapid development of technological change in the epidemic crisis has led to further polarization of the labor market. At the same time, the long-term economic growth prospects are still low, following the trend before the epidemic. In addition, future shocks will come from the frontier risks of unknown possibilities and impacts, and many governments and societies are not ready at present.

Today’s society and the global economy are facing challenges and subversion, which need an unprecedented depth and scale of economic transformation.

The white paper proposes six policy approaches to respond quickly to these long-term dynamics while preparing for future shocks. It is the result of a series of international multi stakeholder dialogues organized by the new economic and social center of the world economic forum, in which the six global future committees of the center are also involved to identify the most urgent economic and social challenges of the world as it emerges from the economic crisis of the 19th century, and to explore a series of solutions for reconstruction on a broader and more inclusive basis.

This policy white paper covers the important contents of the new social contract in terms of fiscal and monetary policy, employment and wages, education and skills, equity and social justice, new markets and frontier risks. In these six areas, it highlights ways to support the creation of more inclusive economic and social outcomes to offset the current dynamics of a different, K-shaped recovery. For each area, the white paper proposes a set of cutting-edge approaches for public, public and private decision makers to think and take action.

As a key output of this process, this report draws on the discussions of leaders and experts involved in the dialogue from October 2020 to may 2021. It also includes the latest ideas from international organizations, academic researchers, think tanks, businesses and other stakeholders. The document aims to be a resource for governments, businesses and other stakeholders interested in promoting economic and social progress.

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