Let us Prepare Oueselves for Great Reset of Modern Capitalism

Context:  Challenges posed by Covid-19 induced crises need to be tackled by resetting and reimaging the foundations of our economic and social systems and 

Need of Great Reset of Modern Capitalism

• The long-term impact of the health crisis: on growth, debt, unemployment, and well-being.
• Climate, social and fiscal crises: will weaken the social and economic systems.
• The post-pandemic world: will be less sustainable, equal, and resilient.

Aspects to the Great Reset

• Social contracts: to ensure fair and equal opportunities, and accelerate “net-zero" CO2 pathways
• Creating equal and fairer outcomes: by steering and nudging the market.
• Channeling investments to build better.
• Using the innovations of the fourth industrial revolution for good. 

Way Forward 

• Expanded role of governments: in aligning taxes, subsidies, fiscal policies, trade arrangements, and other regulations, and create the conditions for a stakeholder economy.
• Ensure distributional equity: of the burden of the crisis by reassessing wealth taxes, ending carbon industry subsidies, rewriting intellectual property, trade, and competition rules.
• New and expanded investment programmes for systems change.
• Once-in-a-generation funds: for funding green infrastructure in cities and incentivising companies with good environmental, social and governance (ESG) metrics.
• Use of the fourth Industrial Revolution (IR-4): to address health and other social issues.