Bernie Sanders says that many people in the US are beginning to rethink the basic assumptions underlying the American value system. Reuters
Bernie Sanders says that many people in the US are beginning to rethink the basic assumptions underlying the American value system. Reuters
Bernie Sanders says that many people in the US are beginning to rethink the basic assumptions underlying the American value system. Reuters
Bernie Sanders says that many people in the US are beginning to rethink the basic assumptions underlying the American value system. Reuters

Coronavirus: Why Bernie Sanders is spot on about renewing our social contracts


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Writing in The New York Times this week, the former US presidential hopeful Senator Bernie Sanders invoked the spirit of the late Nelson Mandela.

“I get very tired of the politicians and pundits who tell us how difficult it is to bring about fundamental changes in our society,” Mr Sanders wrote before quoting words attributed to South Africa’s first post-apartheid president: "It always seems impossible until it is done."

Mr Sanders made the point that there will always be those voices that push back against the future. But perhaps it is the spirit of his thesis that may well need to be more evident in the weeks and months ahead.

“If there is any silver lining in the horrible pandemic and economic collapse we’re experiencing, it is that many in our country are now beginning to rethink the basic assumptions underlying the American value system,” the senator from the state of Vermont added.

Former South African president Nelson Mandela had once famously said: "It always seems impossible until it is done." They ring true even today. Getty Images
Former South African president Nelson Mandela had once famously said: "It always seems impossible until it is done." They ring true even today. Getty Images

So it is. So are many governments re-engineering what the social contract look likes, whether consciously or not, with their crisis responses. For example, the US government is sending its citizens stimulus payments of $1,200 each. It is also estimated that the British government’s furlough plan will eventually cover eight million people.

There is even talk of a "People’s QE", or quantitative easing – an equitable twist on the flood of liquidity injected to save the financial system during the last great crisis more than a decade ago – that is designed to pay people to stay at home while the outbreak is fought. But the question is, what happens when we have emerged from the pandemic? People will arguably need just as much help then, too.

After all, we are only at the beginning of the journey.

Mr Sanders had hoped that a successful bid as the Democratic Party's presidential nominee ahead of elections in November would help usher in a new era of social support – crisis or not – that is akin to what the then US president Franklin Roosevelt managed to bring in during the Great Depression of the 1930s.

Bernie Sanders was hoping to help usher in an era of social support akin to what Franklin Roosevelt managed to bring in during the Great Depression. AP Photo
Bernie Sanders was hoping to help usher in an era of social support akin to what Franklin Roosevelt managed to bring in during the Great Depression. AP Photo

Whether we agree with this aim or not, it now seems it may happen in some form – even without Mr Sanders leading it – thanks to the economic shocks of the pandemic.

In all likelihood, we will need to keep helping people directly, such as with financial assistance, for longer as they adapt – perhaps for up to two years.

This is partly because – to borrow from Roosevelt – we have fear itself as a factor for people to contend with once they can attempt to return to what we now refer to as "normal" activities – like going into an office, eating at a restaurant or travelling for a holiday.

We will need time and support to get used to what life will be like post-restrictions. It will be stressful.

When we do fly again, we could be wearing a mask and gloves as part of a travellers’ equipment as well as the cabin crew’s uniform. AP Photo
When we do fly again, we could be wearing a mask and gloves as part of a travellers’ equipment as well as the cabin crew’s uniform. AP Photo
It will all be very challenging, overwhelming even, for each one of us as outbreaks, epidemics and pandemics become a fact of life – it will be yet another risk that will enter into our decision making

What if the risk of a spike in infections remains? A vaccine being available or not, public health will see a transformation – politically, socially and economically. We will be screened constantly in real-time thanks to new apps being developed. We will want to adhere to much stricter hygiene standards.

When we do fly again, we may not be taking any carry-on baggage with us, hot food may not be served on the flight and we will probably be tested for the virus before we board. As we stretch out (there might never be anyone in the middle seat) we could be wearing a mask and gloves as part of a travellers’ equipment as well as the cabin crew’s uniform.

Amid any coronavirus spike or danger of one, schools may have to temporarily shut physically as a precaution with remote learning days becoming as common as snow days in countries where winters are often harsh. We will likewise spend many more days working from home whether by choice or under stricter workplace guidelines for any kind of contagious illness we might have.

We may have to reserve a time to go shopping so that there is a never a rush of people and there will be no or minimal staff to help when we do. Chris Whiteoak / The National
We may have to reserve a time to go shopping so that there is a never a rush of people and there will be no or minimal staff to help when we do. Chris Whiteoak / The National

We may also have to reserve a time to go shopping so that there is a never a rush of people and there will be no or minimal staff to help when we do. As a result, shops will perhaps need to be open 24 hours to be able to accommodate everyone safely. Otherwise, queues outside supermarkets and malls will be a common site.

Eating out will entail a menu of temperature checks, fewer tables and waiting staff, masks, gloves and digital payments. The food should taste better after so long away but it will not be as carefree an experience, as we worry about the other diners and what germs they may be harbouring.

We will continue to shield the elderly, the sick and those most vulnerable as a precaution should the virus return. This will be hard and at times lonely for many involved.

The really fun things we used to do like attending sporting and music events, trying on new fashions and taking a car for a test-drive will also be fundamentally different experiences.

It will all be very challenging, overwhelming even, for each one of us as outbreaks, epidemics and pandemics become a fact of life – it will be yet another risk that will enter into our decision making. Accepting this situation will be the most urgent task for us individually and as people, as we strive to recover from this crisis.

  • Employees of Electrocomponentes de Mexico are seen during a protest to halt work amid the spread of coronavirus, in Ciudad Juarez, Mexico. Reuters
    Employees of Electrocomponentes de Mexico are seen during a protest to halt work amid the spread of coronavirus, in Ciudad Juarez, Mexico. Reuters
  • US President Donald Trump holds up a list of coronavirus testing locations that he says US states can use as he addresses the daily coronavirus task force briefing at the White House in Washington, US. Reuters
    US President Donald Trump holds up a list of coronavirus testing locations that he says US states can use as he addresses the daily coronavirus task force briefing at the White House in Washington, US. Reuters
  • An Indian tribal couple ride on a bicycle through a deserted highway during the nationwide lockdown at Daranggiri village, west of Gauhati, India. AP Photo
    An Indian tribal couple ride on a bicycle through a deserted highway during the nationwide lockdown at Daranggiri village, west of Gauhati, India. AP Photo
  • A man walks through a field hospital set up inside the Corferias convention center in Bogota, Colombia. AP Photo
    A man walks through a field hospital set up inside the Corferias convention center in Bogota, Colombia. AP Photo
  • Gene Campbell, 89, who contracted coronavirus in early March, sits in his son's car after spending six weeks in the hospital, Washington, US. Reuters
    Gene Campbell, 89, who contracted coronavirus in early March, sits in his son's car after spending six weeks in the hospital, Washington, US. Reuters
  • Russian President Vladimir Putin chairs a video conference meeting on the coronavirus situation, at the Novo-Ogaryovo state residence outside Moscow. AFP
    Russian President Vladimir Putin chairs a video conference meeting on the coronavirus situation, at the Novo-Ogaryovo state residence outside Moscow. AFP
  • A woman stands at an access point to a neighborhood closed off by barriers in Wuhan, China's central Hubei province. AFP
    A woman stands at an access point to a neighborhood closed off by barriers in Wuhan, China's central Hubei province. AFP
  • People walk past shops on a pedestrian street in Dortmund, western Germany, during the coronavirus pandemic. Some small shops in Germany reopened on Monday as the country took a cautious step toward returning to normal. AFP
    People walk past shops on a pedestrian street in Dortmund, western Germany, during the coronavirus pandemic. Some small shops in Germany reopened on Monday as the country took a cautious step toward returning to normal. AFP
  • Members of "Team Drone Masters" after spraying disinfectant d in Ahmedabad, India. AFP
    Members of "Team Drone Masters" after spraying disinfectant d in Ahmedabad, India. AFP
  • A passenger wearing a face mask stands next to a poster of Tokyo 2020 Olympic mascot Miraitowa on a train in Tokyo. AFP
    A passenger wearing a face mask stands next to a poster of Tokyo 2020 Olympic mascot Miraitowa on a train in Tokyo. AFP
  • Olav Kneppen delivers his 4-year-old son Oliver to the "Espira Grefsen Station Kindergarten" in Oslo. Norway, which says it has coronavirus under control, started opening up pre-schools after a month-long closure. AFP
    Olav Kneppen delivers his 4-year-old son Oliver to the "Espira Grefsen Station Kindergarten" in Oslo. Norway, which says it has coronavirus under control, started opening up pre-schools after a month-long closure. AFP
  • A man rides his bike in a deserted street of central Athens on a lockdown. AFP
    A man rides his bike in a deserted street of central Athens on a lockdown. AFP
  • City workers disinfect a bus stop to help prevent the spread of coronavirus outside a closed cinema featuring a mural of film directors, from left, Federico Fellini, Alfred Hitchcock, Luis Buñuel and Lucrecia Martel in Montevideo, Uruguay. AP Photo
    City workers disinfect a bus stop to help prevent the spread of coronavirus outside a closed cinema featuring a mural of film directors, from left, Federico Fellini, Alfred Hitchcock, Luis Buñuel and Lucrecia Martel in Montevideo, Uruguay. AP Photo

We will all need extra help to adjust and we should get it – in every form possible – until we can begin to feel confident again. The heavy price we have paid socially, politically and economically in recent years from previous crises has been as much the result of not providing that help for long enough or in the right areas as anything else.

With so much change on the horizon, the examples of Mandela and Roosevelt are likely to be embraced far more frequently as we grapple with it.

Mustafa Alrawi is an assistant editor-in-chief at The National

Awar Qalb

Director: Jamal Salem

Starring: Abdulla Zaid, Joma Ali, Neven Madi and Khadija Sleiman

Two stars

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Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

Timeline

2012-2015

The company offers payments/bribes to win key contracts in the Middle East

May 2017

The UK SFO officially opens investigation into Petrofac’s use of agents, corruption, and potential bribery to secure contracts

September 2021

Petrofac pleads guilty to seven counts of failing to prevent bribery under the UK Bribery Act

October 2021

Court fines Petrofac £77 million for bribery. Former executive receives a two-year suspended sentence 

December 2024

Petrofac enters into comprehensive restructuring to strengthen the financial position of the group

May 2025

The High Court of England and Wales approves the company’s restructuring plan

July 2025

The Court of Appeal issues a judgment challenging parts of the restructuring plan

August 2025

Petrofac issues a business update to execute the restructuring and confirms it will appeal the Court of Appeal decision

October 2025

Petrofac loses a major TenneT offshore wind contract worth €13 billion. Holding company files for administration in the UK. Petrofac delisted from the London Stock Exchange

November 2025

180 Petrofac employees laid off in the UAE

EA Sports FC 26

Publisher: EA Sports

Consoles: PC, PlayStation 4/5, Xbox Series X/S

Rating: 3/5

Rashid & Rajab

Director: Mohammed Saeed Harib

Stars: Shadi Alfons,  Marwan Abdullah, Doaa Mostafa Ragab 

Two stars out of five 

NYBL PROFILE

Company name: Nybl 

Date started: November 2018

Founder: Noor Alnahhas, Michael LeTan, Hafsa Yazdni, Sufyaan Abdul Haseeb, Waleed Rifaat, Mohammed Shono

Based: Dubai, UAE

Sector: Software Technology / Artificial Intelligence

Initial investment: $500,000

Funding round: Series B (raising $5m)

Partners/Incubators: Dubai Future Accelerators Cohort 4, Dubai Future Accelerators Cohort 6, AI Venture Labs Cohort 1, Microsoft Scale-up 

It Was Just an Accident

Director: Jafar Panahi

Stars: Vahid Mobasseri, Mariam Afshari, Ebrahim Azizi, Hadis Pakbaten, Majid Panahi, Mohamad Ali Elyasmehr

Rating: 4/5

The%20specs
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Need to know

Unlike other mobile wallets and payment apps, a unique feature of eWallet is that there is no need to have a bank account, credit or debit card to do digital payments.

Customers only need a valid Emirates ID and a working UAE mobile number to register for eWallet account.

Key facilities
  • Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
  • Premier League-standard football pitch
  • 400m Olympic running track
  • NBA-spec basketball court with auditorium
  • 600-seat auditorium
  • Spaces for historical and cultural exploration
  • An elevated football field that doubles as a helipad
  • Specialist robotics and science laboratories
  • AR and VR-enabled learning centres
  • Disruption Lab and Research Centre for developing entrepreneurial skills
Liz%20Truss
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Singham Again

Director: Rohit Shetty

Stars: Ajay Devgn, Kareena Kapoor Khan, Ranveer Singh, Akshay Kumar, Tiger Shroff, Deepika Padukone

Rating: 3/5

While you're here

 

Company: Instabug

Founded: 2013

Based: Egypt, Cairo

Sector: IT

Employees: 100

Stage: Series A

Investors: Flat6Labs, Accel, Y Combinator and angel investors