Parliamentary Forum at the United Nations
High-level Political Forum
on sustainable development (HLPF)
Message from the pandemic: Bring “government” back
Monday, 12 July 2021
9:00
–
11:00 EST (New York)
English, French and Spanish interpretation
Online registration by 8 July at
https://form.jotform.com/211393642879163
Is an implicit message of the COVID-19 pandemic that government
–
the
public authority
consisting of the
executive, parliament, the judiciary and the public administration
–
must play a more pro-active role in the
economy and in society?
Over the last few decades, governments have progressively abandoned their traditional
“interventionist”
posture out of concerns that excessive control of the economy might interfere with market forces which,
left to their own devices, were supposed to always lead to a more optimal allocation of benefits and
rewards throughout society. The competitive ethos of the private sector was said to be the key driver of
innovation, investments, and technological developments. The solution to problems such as poverty and
environmental degradation was more likely to come from the internal dynamics of the marketplace than
from state laws and regulations.
Driven by this belief, almost everywhere in the world, governments worked to liberalize the economy and
deregulate the marketplace. Public infrastructure and services were sold or subcontracted to private
sector actors through public-private partnerships. Trickle-down economics promoting low taxes and
budget austerity replaced pro-active income and fiscal policies. Government rules to protect workers and
the environment were loosened. National industrial policies were dismantled on the assumption that
government should not pick
“winners”
but leave it to companies to decide what and where to produce.
Capital controls were lifted to enable foreign investments and global supply chains to take advantage of
more profitable production conditions anywhere in the world. The doctrine of
free
trade based on nations’
comparative advantages prevailed over
fair
trade practices to protect the environment, workers and
consumers.
The emergence of COVID-19 in December 2019 and the ensuing global pandemic have disrupted this
common narrative. Caught unprepared to deal with such a crisis, almost overnight, many governments
rediscovered their own authority and took immediate action to stem the threat to human life and forestall
economic collapse.
In response to the pandemic, unprecedented government borrowing to rescue private companies, provide
emergency health care, and strengthen welfare entitlements took place in many countries despite
“market