Learning from Covid-19: Imagining a healthier and more just economy
The Covid-19 virus has exposed the weaknesses in every social and economic system it has touched. In today’s analysis, Leonora Risse (@Leonora_Risse) of RMIT (@RMIT) and the Women and Public Policy Program at Kennedy School (@wapppHKS) provides a 2-part analysis of what’s going wrong for women right now and how it could be addressed. Today’s Part 2 provides thoughts on how work inequalities that have been exposed by the pandemic can be addressed. You can read Part 1, which provides an overview of how women are differentially impacted by their employment and unpaid work, here.
Repurposing for a shared mission
As thousands of workers' jobs have been swept away, simply because it has become unsafe to continue the usual interaction that take place between buyers and sellers in the paid market, governments worldwide are channeling trillions of dollars towards financially relieving displaced workers and businesses.
Not only are job losses are devastating for people’s physical livelihood, they are erosive to mental wellbeing. In additional to financial security, ideally we need to find ways to keep displaced workers' skills up-to-date, and their wellbeing afloat, for when job opportunities open up again on the other side of this economic suspension period.
Wherever possible, we should also be steering displaced workers and businesses towards the immediate services and products we need more of during the pandemic. In wartimes, governments called this "repurposing". In today's consultancy speak, businesses call it "pivoting". Already we are seeing new job opportunities for workers opening up in warehousing, delivery and cashier staff in response to changes in customer behaviour.
Another dimension of job repurposing, from the perspective of the public health mission, should involve fortifying our healthcare system with behind-the-scenes support. This can encompass mobilising hospitality workers to provide accommodation, transport and laundry services for the healthcare workforce, recruiting more mental health professionals to support frontline workers, and expanding capacity in logistics supply chain and information management within hospitals and public administration.
These types of repurposing efforts require careful coordination in what is already a complex operating environment, but can be a way to make more gainful use of our under-utilised resources and existing skills base. It also gives people and businesses a way to keep contributing something meaningful to society – an important ingredient for longer-term mental health and psychological resilience.
We can also use this interim suspension period to start training more workers for the jobs that are likely to be in even greater need as society emerges on the other side of the worst of the pandemic. Though we don't yet know what this world will look like, we're likely to need many more workers in psychological and social support services, as we deal with the long-term repercussions of the pandemic. Higher staff ratios are likely to be needed in aged care and other personal care services, at the very least as a precautionary safety measure. And we'll need more teaching and learning professionals and resources, as the education sector strives to help students catch up on the knowledge and skill development they're missing out on now.
When we emerge on the other side of this pandemic
We are all looking for silver linings from this pandemic.
If anything, this pandemic has vividly crystallised the distinction between "needs" and "wants". What truly matters to sustain everyday life versus what is a mere luxury.
We can only hope that society will emerge on the other side of this pandemic with newfound insight and appreciation:
A deeper appreciation of the value of the caring, health, education, scientific and medical professions, which all sit squarely on the needs side of the ledger.
A deeper recognition of the value and volume of unpaid domestic work that is fundamental to fulfilling human needs, but has long been overlooked in most realms of economic thinking and public policy design.
And a deeper appreciation for the value of public investments in human wellbeing and community-oriented thinking, in place of an unfettered reliance on the power-driven, profit-motivated free market to guide us towards "what's best". Look at the pre-COVID-19 world that this ideology left us with: extreme inequality, over exploitation of natural resources, and a concentration of power and leadership in a hands of a very narrow and privileged demographic slice of the population.
Let's hope that these new depths of appreciation won't just been fleeting afterglow, but translate into lasting and tangible change. What type of changes? A recalibration in the wage rates of these essential jobs, relative to the many other professions that are probably looking rather overpaid and overvalued right now. A shift in workplace policies and attitudes that will enable all workers to contribute to family and care responsibilities. A shift in workplace practices that will permit all of us to work more flexibly and achieve a healthier balance between work and life in general. A change in behaviours at home so that all family members contribute their fair share to unpaid domestic work and care. And, a deeper scrutiny of the competencies, values and demographic representativeness of the leaders whom we're entrusting with the responsibility of formulating policies and making crucial decisions that shape our lives.
This pandemic has exposed every crack in our economy. We can do better going forward if we pay attention. Photo by Pete Garnett on Unsplash
We need more political leaders who realise that good governance entails more than managing jobs and the economy – it's about articulating a holistic and meaningful set of values and vision for the country. Of course jobs are critical for financial security and a sense of purpose and accomplishment, but the world needs more leaders who realise that at the heart of a well-functioning economy is human wellbeing. GDP figures will fade into oblivion little when hospitals are overflowing with dying patients. Businesses won't attract any customers when it's too hazardous to go out in public. Economic and psychological confidence can be resuscitated when citizens sense that their leaders genuinely hold their health, safety and wellbeing at the core of their priorities. Showing that you care is a signal that you are there, as a leader, to serve.
A commitment to wellbeing equips governments with greater agility to keep their citizens safe and on board with government policy. New Zealand Prime Minister Jacinda Ardern is a case in point. As a leader, she had already made a commitment to place human wellbeing at the centre of her government's budget and policy priorities. There was little hesitation in New Zealand's swift and firm response once it became clear that COVID-19 posed a threat to human lives. With her clear and empathetic communication style, she has earned the trust of the public, including that of many Australians.
Compare this to the response of Australian Prime Minister Scott Morrison, who made it his mission to achieve a "back in black" budget as the lasting legacy of his government. While well-intended, a fixation on this budgetary goal meant that when an external shock required putting the brakes on the paid economy, the government suffered paralysis. Trapped by a self-imposed competing commitment problem, it lost the agility required to refocus its goals, prepare with foresight and respond swiftly once first signs of a health crisis loomed, getting bogged down instead in the denial phase that is often part of the human response to shock. The same could be said about the stalled responsiveness of US Federal Government, where President Donald Trump has striven to make "jobs, jobs, jobs" the hallmark of his Presidency.
As it turns out, the notion that we have to choose between saving lives and saving jobs is mistaken, especially when we take a bigger picture view. A study of the economic impact of lockdowns in the US during the 1918 Spanish Flu found that putting the brakes on the economy does not necessarily come at the expense of economic growth and jobs over the longer term. On the contrary, tougher lockdowns corresponded to a faster and stronger return to economic prosperity in the future. Economists in the US agree that lifting the current lockdown too quickly would be disastrous for both lives and for the economy. Economists in Australia are also advocating for a hard and fast lockdown for the sake of both lives and jobs over the long-run. Prioritising human wellbeing pays off.
The thing is, if businesses and governments had placed more importance on investing in public health, medical, research, scientific and education services – investments in human wellbeing – in the first place, the fallout in economic capacity now being computed by economists wouldn't be as deep. Investment in human wellbeing is not only an essential ingredient for a thriving economy, but also fortifies us with greater resilience when challenges and disaster strike.
If we emerge from this chapter of world history with just one silver lining, let's fiercely aspire for a more enlightening mindset that prioritises human wellbeing and care – for each other, for our communities, and for the planet – at the heart of all decision-making. Sustainable economic prosperity will naturally follow.
Hope and empowerment springs from realising that we have potential to not only return to life as "normal", but to something even better.
NOTE: This article contains my professional view as an economist and is not intended to offer assessment of public health policy, which is the domain of experienced public health experts.
This post is part of the Women's Policy Action Tank initiative to analyse government policy using a gendered lens. View our other policy analysis pieces here.
Posted by @SusanMaury @GoodAdvocacy