Countries around the world are now waging a battle on two fronts to contain the damage of Covid-19. On one track is the fight to stop the spread of the virus and to minimise fatalities. On the other is the struggle to save economies and hard-earned welfare.
For both, the decisions that are made now, under enormous time pressure, will have long-term ramifications. In the short term, containing the spread of the virus rapidly will allow for economic recovery to start faster. But the building blocks of economic recovery, laid in place in the weeks and months ahead, will have a lasting impact on our societies and their future. That is why it is crucial to get the recovery right from the get-go.
The socioeconomic implications of the coronavirus crisis will be “way worse than the global financial crisis” of 2008-2009, as IMF chief Kristalina Georgieva recently recognised. There is an important reason for looking back to that crisis. The Great Recession a decade ago was triggered by greed and bad governance. Governments responded with major stimulus packages and measures to strengthen corporate governance. In hindsight, many feel that bailouts focused too much on companies over people. But economies around the world recovered.
A less remembered outcome of the crisis is the idea of green growth, which was widely promoted by the OECD, World Bank, G8 and G20, among others, as a recovery strategy that would ensure economic growth while benefiting both people and the planet.
Despite scientific consensus confirming that humans are causing global warming, the 2009 Copenhagen climate summit ended in a disastrous failure and delivered a major blow to confidence in multilateralism. Green growth, with its promise of reconciling economic growth with lower emissions, managed to inspire governments as diverse as South Korea, Finland and the UAE to develop strategies for green economic development at a national level.
Halfway through the decade, I co-edited a book examining prospects for green economies in the Gulf. We highlighted that a dramatic change in course was needed globally to keep us within a safe operating space, respecting the Earth’s limits for biodiversity loss, climate change or freshwater use.
We predicted that “the time of ‘brown’ economies may be over much sooner than the world’s top oil exporters are willing to admit.” We also highlighted the benefits of clean energy, sustainable cities and just workforce transitions. Much progress has been made since.
At the same time, today we are still far from a global green economy, with emissions and biodiversity destruction at record highs. On top of this, we are faced again with a major crisis triggered by greed and bad governance – this time as a perfect storm of ecosystem disruptions, wildlife trafficking, and misguided agricultural policies. And, as a decade ago, we have now started to hear calls for green recovery.
References to economic stimulus measures that support Green Deals are multiplying in the US and Europe. But there are also indications of upcoming bailouts for auto industries and relaxations of pollution regulations, which would take us in the wrong direction.
The time of ‘brown economies’ is not yet over. Oil demand will rise sooner or later as, unlike the global energy transition required to avert a climate catastrophe, the impact of the coronavirus crisis on overall energy demand will largely be temporary.
The current crisis, however, provides an important moment of reflection for countries regarding their energy policies, which could have long-term ramifications for fossil fuels. Here in the Gulf, governments have a golden opportunity to reinforce policies that prepare the region’s economies for the post-oil era.
Let it be clear, as stressed by the UN environment chief Inger Andersen, “Covid-19 is by no means a ’silver lining’ for the environment.” The air is now cleaner, and scientists suggest 2020 could see a several percentage point drop in global carbon dioxide emissions. But if economic stimulus packages are designed to support polluters, this could become a mere blip on an upward trajectory. The UN estimates that limiting global temperature rise to 2°C, which is considered as the ultimate safe limit, requires emissions to fall by 2.7 per cent per year through 2030. And this obviously needs to happen without severe restrictions to movement and disruptions to markets.
The coronavirus has forced us to pause. It is creating havoc and tragedy on many levels. Although it has no silver linings, it gives us a chance to revisit lessons of the past to rebuild something better. Metaphorically, as for us as individuals, for economies too it is time for self-reflection and housecleaning. This way, we can all re-emerge as improved versions of ourselves when life returns to normal.
The current crisis provides a moment of reflection for countries regarding their energy policies
A powerful lesson of the 2008 financial crisis for all countries is that good intentions to build more sustainable and inclusive economies can easily get side-lined when structures and incentives prioritising economic growth over environmental and social sustainability are allowed to rebound.
Fortunately, over the past decade, many countries have already figured out their roadmaps to green economies. Thanks to the private sector, clean technologies and solutions have multiplied and become cost-effective. People are better educated about the environmental externalities of our consumption. And, most promisingly, we now have tangible evidence of our collective ability to change course when needed. Hopefully, building green economies will require far fewer sacrifices and bring lasting benefits.
Mari Luomi is an expert on climate policy in the Gulf
Forced%20Deportations
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Violence%20
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In numbers: PKK’s money network in Europe
Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010
Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille
Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm
Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year
Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”
Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners
TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013
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Sreesanth's India bowling career
Tests 27, Wickets 87, Average 37.59, Best 5-40
ODIs 53, Wickets 75, Average 33.44, Best 6-55
T20Is 10, Wickets 7, Average 41.14, Best 2-12
Our legal columnist
Name: Yousef Al Bahar
Advocate at Al Bahar & Associate Advocates and Legal Consultants, established in 1994
Education: Mr Al Bahar was born in 1979 and graduated in 2008 from the Judicial Institute. He took after his father, who was one of the first Emirati lawyers
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'Munich: The Edge of War'
Director: Christian Schwochow
Starring: George MacKay, Jannis Niewohner, Jeremy Irons
Rating: 3/5
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More on Coronavirus in France
Bareilly Ki Barfi
Directed by: Ashwiny Iyer Tiwari
Starring: Kriti Sanon, Ayushmann Khurrana, Rajkummar Rao
Three and a half stars
RACE SCHEDULE
All times UAE ( 4 GMT)
Friday, September 29
First practice: 7am - 8.30am
Second practice: 11am - 12.30pm
Saturday, September 30
Qualifying: 1pm - 2pm
Sunday, October 1
Race: 11am - 1pm
German intelligence warnings
- 2002: "Hezbollah supporters feared becoming a target of security services because of the effects of [9/11] ... discussions on Hezbollah policy moved from mosques into smaller circles in private homes." Supporters in Germany: 800
- 2013: "Financial and logistical support from Germany for Hezbollah in Lebanon supports the armed struggle against Israel ... Hezbollah supporters in Germany hold back from actions that would gain publicity." Supporters in Germany: 950
- 2023: "It must be reckoned with that Hezbollah will continue to plan terrorist actions outside the Middle East against Israel or Israeli interests." Supporters in Germany: 1,250
Source: Federal Office for the Protection of the Constitution
Secret Pigeon Service: Operation Colomba, Resistance and the Struggle to Liberate Europe
Gordon Corera, Harper Collins
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Who's who in Yemen conflict
Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government
Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council
Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south
Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory
Other ways to buy used products in the UAE
UAE insurance firm Al Wathba National Insurance Company (AWNIC) last year launched an e-commerce website with a facility enabling users to buy car wrecks.
Bidders and potential buyers register on the online salvage car auction portal to view vehicles, review condition reports, or arrange physical surveys, and then start bidding for motors they plan to restore or harvest for parts.
Physical salvage car auctions are a common method for insurers around the world to move on heavily damaged vehicles, but AWNIC is one of the few UAE insurers to offer such services online.
For cars and less sizeable items such as bicycles and furniture, Dubizzle is arguably the best-known marketplace for pre-loved.
Founded in 2005, in recent years it has been joined by a plethora of Facebook community pages for shifting used goods, including Abu Dhabi Marketplace, Flea Market UAE and Arabian Ranches Souq Market while sites such as The Luxury Closet and Riot deal largely in second-hand fashion.
At the high-end of the pre-used spectrum, resellers such as Timepiece360.ae, WatchBox Middle East and Watches Market Dubai deal in authenticated second-hand luxury timepieces from brands such as Rolex, Hublot and Tag Heuer, with a warranty.
UAE currency: the story behind the money in your pockets
The specs
Engine: 1.5-litre 4-cylinder petrol
Power: 154bhp
Torque: 250Nm
Transmission: 7-speed automatic with 8-speed sports option
Price: From Dh79,600
On sale: Now