Capitalism reset and new social contract post covid-19 crisis

In this article Klaus Schwab, Founder and Executive Chairman of World Economic Forum, argues that the long term economic consequences of the pandemic will exacerbate the climate and social crises that were already underway and this will make more urgent the “great reset” of our economic and social systems.

According to the author “we must build entirely new foundations for our economic and social systems” if we want to create a healthier, more equitable, sustainable and prosperous world. It sounds too ambitious, however Professor Klaus Schwab believes is feasible mainly because of the “changes we have already seen in response to COVID-19”, which have forced us to quickly and radically abandon some habits in our lifestyles that were considered essentials prior to the pandemic. This “great reset” would be based on three pillars:

• Steering the market towards fairer outcomes, bearing in mind environmental and social risks and opportunities and not just focusing on short term financial profits. 
• Ensuring that investments pursue shared goals, such as equality and sustainability. In this regard, the author mentions the European Commission €750 billion recovery fund which represents a major opportunity for progress.
• To harness the innovations of the Fourth Industrial Revolution to support the public good, especially by addressing current health and social challenges.