ABSTRACT
In the pandemonium of the pandemic, many considerations come to bear on decisions African leaders make now. Incurring new debt, entering into onerous lending conditions or stretching the fiscus beyond its capacity do not make for a resilient reality post-Covid-19 crisis. Pandemic response measures that will prove the most effective mid- and post-crisis will be fiscal measures. While it’s going to be a strain, investing in health infrastructure, social protection and protecting small business now could offset these costs. Pre-Covid-19, the overly financialized business sector preferred a state that didn’t interfere in the market or impose regulation that disciplined capital, now in the midst of crisis it’s a very different story. State leadership and direction is key to keeping the economy afloat. Now is the time for government to shape policy that invests in people, labor, research and wages – the tenets of real value in an economy that a shareholder business culture has occluded to obvious detriment in the wake of coronavirus. Economist Mariana Mazzucato insists that fiscal support must come with conditions, such as a zero-retrenchment policy for companies receiving state bailouts or a commitment to building skills. Denmark and Poland have provided fine examples of conditionalities and disciplining capital by refusing to support companies registered in offshore tax havens. Covid-19 is not the only crisis facing the planet, we also face ecological collapse due to resource depletion, climate change and ruthless development. Imagining a post-pandemic world means we are cognizant of this imminent threat and prepare to build resilient and just systems.
