Building back better

COVID-19 and Global Recession or Building Back Better

All the major stakeholders agreed today that COVID-19 an unprecedented health and economic crisis; it even threatens to reverse the development progress of recent years.

Will it lead us to a major recession or will we succeed to be resilient for the next threats?

1 Major Impact

1.1 First order impact:

The first range of impact is on health, unemployment and a major financial crisis:

Tourism and Airlines are facing a major crisis with more than 65% losses in some countries.

- more than $ 41 billion in airline tickets may not be reimbursed

- 55% for airline revenues in 2020 According to the International Air Transport Association (IATA)

- Nearly $ 320 billion in losses for airlines

- COVID-19 pandemic could cut 50 million jobs worldwide in the travel and tourism industry.

Cyber security

As more people working from home, there is an increase of cyber-security threats for people and Companies:

German health authorities - while attempting to buy masks in bulk online - were last month ensnared in an elaborate international scam : paying $16.4 million for masks that didn't exist.

1.2 Second order impact :

Covid-19 has shown how fragile is our economy and social-environmental environment.

In the same line than closure of borders and massive lockdown, nationalization, populism across various countries are rising. We are therefore facing a big risk of lack of multi, large cooperation.

Each one us is impacted one way or another by this small virus. We are all connected, one single planet, we have to work together for a recovery to avoid a global recession.

The world will need a major worldwide coordination to reboot.

2. After ?

China is already in touch with several countries, Asian countries, first for the re-opening of borders (at least for Business Executive).

2.1 Insurance companies will need to adjust to reflect such crisis in the future!!

We need to ensure people are resuming their work in a safe way to avoid major unemployment or slowdown but also to have any panic.

in USA, 46 million people already lost their job!!

Major companies are already working in order to be able to set-up long-term plan to ensure sustainable investment in line with their strategy.

2.2 New leadership will raise

Financial and Political coordination is a must.

New employee profile will emerge with a more focus on strategy, agility and dual financial – operational exposure.

It's an uncertain times for investors, most of the prediction made for the year show their limits. Investors need to think long-term and buy, create agile portfolio.

Investment firm shall become more stakeholders than shareholders.

We encourage companies to give/sell shares to employees (thus will lead to more involvement) and to add change/crisis management strategy in their policy.

3. Climate change

2020 brought Covid-19, is showing us how things can change really fast in our world and how fragile our current economic system is.

But, unfortunately, it won't be the last threat.

Let’s start think about climate change. We need to commit on this next topic.

"We need to accelerate the digital transformation and the renewable energy plus the smart green cities."

If we go back to the way we were living, then we are stupid:

- what’s the point of having all the employees in office, increasing the congested traffic if 30% can work relocated or from home?

-   What’s the point of living all downtown if some can live in a separate county (more space for kids and family) and work remotely?

In some subjects, business and government can work now together like they did to respond for the need of test and mask :

The coordinate answers allowed to build fast and efficient response. It should be the same for the next strategies on green sustainability or the next threat will lead us to the worse period ever on earth.

Innovation will be a key contributor