Economic

The economic leadership of the US in the post-pandemic stage

The coronavirus has put a question mark on the future of the global leadership economy. As of now, everyone is anticipating thin growth, rising inequality, perturbed markets, and expanding financial risks. But these are mere speculations and nothing else. The timely changes in the policies can pave the way for resilience, dynamism, and inclusiveness. Covid-19 has wreaked havoc on the economy beyond expectations leading to the reduction of economic activities, an increase in inequality, and more. Since the vaccine is also not ready, the way to economic recovery and getting rid of the pandemic looks blurred. 

Even the highest international financial establishments, such as the International Monetary Fund (IMF), the World Bank, and the OECD predict slower economic regain threatened by the Covid-19. They believe countries will take a minimum of two years to be back on track. At the same time, they also warn that it can get further delayed if the next wave of the pandemic occurs.

There is an urgent need for coming up with pro-growth rules that can bolster leadership economic recovery in a sustainable and widespread way. While short-term relief is significant, there has to be a long-term approach for encouraging productivity, removing the fear of financial insecurity from people’s minds, combining national and international interests for growth, and addressing the gap between the real economic status and system. Everyone has their eyes set on the US, the largest economic power of the globe.

The role of the US in the economic recovery

The USA holds the global reserve currency. It leads the IMF, the World Bank, the G 20, and G 7. Hence, it has a greater say in collecting and distributing investment funds. A lot of what translates can depend on its approach towards the economy.

The US policymakers already urge for introducing pro-growth policies. But the main hindrance in their way is the domestic leadership political grounds. The declaration of a pandemic relief package of about $3 trillion is praiseworthy. Still, the rising coronavirus cases, social tensions, protests against racism, and other various issues have pushed. The lawmakers to a corner. Consequently, the opportunity to lay a foundation for long-lasting future growth in areas like infrastructure, skill enhancement. And others seem to be a remote possibility. Besides, there appears to be wide disagreement among US policymakers on a lot of topics.

How to move forward?

Despite the clear divide, the lawmakers can still come together on inclusiveness, long-term growth, and faster recovery. For this, they can combine short-term relief steps with pro-growth economic policies and reforms. Otherwise, in the absence of this, the risk of problems like unemployment and others can significantly increase. The discussions around multilateral administration and the operation of the global system led by rules can pave the way. The US needs to focus on the reformation of the IMF and the World Bank by leadership emphasizing. The real economy and Fund infusion.

Also, other nations have to heed these changes if they want to improve their economy. The US economic growth, global fiscal stability, and monetary policies will have a substantial impact on them regardless of their size. In the face of the pandemic, it has become leadership essential to have a global approach to policy changes.