'When crisis strikes, as it has so often in the past three years, international cooperation can save lives and livelihoods.' 📝 Kristalina Georgieva (KGeorgieva)
arly in the pandemic, experts projected that the world economy could shrink by almost 10% in 2020. Yet what played out was a contraction of 3.1%—still a huge loss of output, but not nearly as dire. To a large extent, this was due to international cooperation. Countries came together to diagnose the problem: a simultaneous shock to supply and demand. This meant that standard policy responses would not be sufficient.
But this is only part of the story. The dislocations from trade and technological change have harmed some communities. Inward-looking policies and trade tensions have been on the rise for some years. And now geopolitical fragmentation is raising the specter of a “new cold war” that could see the world break into economic blocs at a cost of trillions of dollars in lost productivity.
The answer must be no. The suffering of one country can easily affect others and threaten global growth. So it’s in everyone’s interest to urgently strengthen international cooperation on these vital issues. The IMF is founded on the principle that we are stronger together.
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