Developing Countries and Governments Will Struggle Post-Pandemic
By: Cody Collins
Tags: Economics, Automation, Government, Pandemic, Covid 19

Photo by Sara Stasi on Unsplash

I recently read Us Vs. Them: The Failure of Globalism by Ian Bremmer. It was a thought-provoking book that discussed changes in politics and the impact globalism has had on the world economy.

One big concept that was touched upon was the future of automation and how that can displace millions, if not billions, of people from their jobs all around the world. Advances in automation and the displacement of people from their jobs have only been accelerated due to the ongoing pandemic.

When this book was written in 2018, it gave a grim outlook. If only Ian knew of what would occur just two years down the road.

The topic I thought was most interesting from the book was the concept of government for or against the people.

Purpose of Government

Every country is different, and every government is different. With that said, I am a big fan of the excerpt from Lincoln’s Gettysburg Address:

Government of the people by the people for the people — Abraham Lincoln

The part of that quote I value the most is “for the people.” Everyone will have their own ideas and can dissect this one sentence to mean a thousand different things. But to me, “for the people” means the government is there to help the people.

And everyone will again have their own ideas on how much “help” should be provided. Socialists and libertarians have been debating this for centuries and will continue to debate it for centuries more.

If government is made for the people, they have an obligation to protect its citizens. And with that said, it may get more and more difficult going forward.

Economic Struggles of Government

The future belongs to those who prepare for it today. — Malcolm X

It is true, the future is important. People should always be looking forward, not backward. But the present is also important.

Governments face tremendously difficult decisions when it comes to the future and their economies. You may have heard of a 5-year plan; governments likely have a 25-year plan.

If automation comes to fruition and many unskilled laborers lose their jobs, what will happen? Governments need to coordinate investing in future education, infrastructure, job training, and social safety net programs while trying to balance their budgets. Global debt is now at an all-time high, and only likely to get higher. Who do we owe all this money to anyways, Jupiter?

Future Conflicts

If governments can’t protect peoples’ jobs, what will happen? Will people receive supplemental income from the government? Will citizens move to a new country? Either way, it can’t be good for governments’ tax revenue and trying to balance their budgets.

If governments are no longer helping people, will people start to rebel? Desperate times call for desperate measures.

I don’t foresee this happening in wealthy countries. But as low-income countries face issues with inflation, unemployment, the pandemic, and lack of trust in the government, there may be issues. If people aren’t happy with the results, they will want change. Voting may not always be a way for change in some countries. Sometimes the people take matters into their own hands. Governments are never one to happily release their power. Something usually has to give.

I’d love to say we will one day have world peace, but that is not realistic. Hopefully, though, many future conflicts can be avoided and lives can be saved.