What does the COVID-19 pandemic reveal about neoliberalism？
Since the end of 2019, the COVID-19 pandemic has raged around the world, posing serious risks and challenges to the lives and health of all human beings. Although different countries have different strategies to deal with the epidemic, governments are all grappling with the challenges of restoring social production and preventing and controlling the epidemic, and are investigating the root causes of the predicament. The impact of the epidemic is expected to have a profound impact on the modern economy and help reshape the world’s political and economic landscape, leading to a further escalation of the inherent contradictions of neoliberalism, such as structural inequality, underdevelopment, and social polarization. Some scholars believe that the “death of neoliberalism” is imminent, such as Nunes showing a direct attitude: “The COVID-19 pandemic not only means that the crisis of neoliberalism is an economic model, but the pandemic itself is a new freedom crisis.” The International Monetary Fund described the pandemic as a “rare disaster” and noted “a crisis like no other.”
This article focuses on neoliberalism, structural inequality, and underdevelopment under the Covid-19 pandemic. Though there may be no similarities between countries because of their vast cultural, institutional, environmental, and racial differences, given that all coronaviruses are treated equally in terms of transmission, cross-country comparisons may be a useful tool to improve future scholars’ understanding of pandemic governance and management. Cross-country comparisons are not designed to condemn countries. Instead, it focuses on identifying factors that contribute to the success of other countries, which, if feasible, can be replicated in other countries. While countries are urging vaccinations, vaccines alone will not stop a pandemic or bring the world back to “normal.” The level of international cooperation in the fight against COVID-19 is critical. Overall, since the duration of this pandemic cannot be predicted, addressing institutional issues such as neoliberalism in COVID-19 may help shape future decision-making.
The government could rethink its concept of development quality
The COVID-19 crisis has sparked a practical debate about the nature of globalization. It prioritizes economic growth rate over quality, leading to environmental problems, climate change and even a public health crisis. The current global pandemic is a reminder that the world needs to pay more attention to the quality of global growth. Also, the pandemic should be exploited to implement green deals. To make sustainable development relevant for the majority of people, governments should invest heavily in clean energy development, retrofitting low-energy buildings, and preventing global climate change.
Structural reforms should be implemented immediately
Fiscal buffers and debt sustainability require pro-growth policies. For example, some policies could be proposed: all student loan debt forgiveness, tuition reduction. To reduce the distribution gap, a permanent national basic income scheme, a universal health insurance system and a true public health care system, and laws on paid leave and unemployment insurance are proposed.
The structure of the welfare state could be reorganized
The mixed economy and the welfare state are two pillars of the European development model, and neoliberalism has severely eroded it through privatization and cuts in public spending. Europe can rebuild the welfare state by reforming fiscal and tax policies to promote a higher level of integration among member states. They can do this by establishing international standards in the fields of health, welfare and the environment, taking leadership roles in international organizations, and developing the best solutions to epidemics.
The relationship between citizens and the state needs to be repositioned
The outbreak of a pandemic inevitably leads to enforced lockdowns, citizen surveillance, and movement restrictions, which may involve the exercise and enforcement of state powers and rely on a source of trust and expertise between citizens and the state. On the other hand, mistrust in the state leads directly to difficulties in dealing with diseases, such as the anti-vaccine protests launched by citizens of the Netherlands and France. Therefore, it is time to rebuild trust, collective action and inclusive cooperation between the state and its citizens are a testament to the importance of this.
While many adjustments can be made in response to the COVID-19 pandemic, many of the measures taken by governments are ad hoc strategic choices made in response to political and economic pressures in times of crisis. They will not use the crisis to influence deeper institutional changes. Many countries may revert to their pre-crisis status quo, waiting 10 years or less for the next crisis. Therefore, there are still many risks and uncertainties in the adjustment of the epidemic in the post-epidemic era.
By Demi Zhang
