Author: Joel Kotkin and Hügo Krüger

Winners and Losers: The Global Economy After COVID

The COVID-19 pandemic has transformed the world economy in ways that will be debated by pundits and future historians for decades to come. Yet, as hard as it is to predict a disrupted future accurately, the pandemic (not to mention its probable successors) looks likely to produce clear economic winners and losers. The top digital companies—Amazon, Apple, Tencent, Microsoft, Google, Facebook, Ant, Netflix, and Hulu—have thrived during quarantines and the ongoing dispersion of work. These are the most obvious winners in what leftist author Naomi Klein has called a “Screen New Deal” that seeks to create a “permanent and profitable no-touch future.” Since 2019, Facebook, Apple, Amazon, Microsoft, and Google have added over two-and-a-half trillion dollars to their combined valuation, and all enjoyed record breaking profits in 2020. But it’s not just the tech oligarchs who have benefited from the pandemic disruption. Companies that keep the basic economy functioning—firms dealing in logistics, for example, or critical metals or food processing—have become, if anything, even more important. With the shipping supply chain disrupted due to the …

COVID-19 and the Ongoing Global Workplace Revolution

For most of the recent past, economic geography has shifted to ever-larger cities across the globe. By the end of the last decade, many were convinced that we were entering a supreme era of the glittering, high-rise “superstar” city that would inevitably swallow all the best bits of the economy, and serve as unparalleled centers of tech, culture, political activism, and global trade. Globally, the ranks of city-dwellers more than doubled over the last 40 years, from 1.5 billion in 1975 to 3.5 billion according to data from the OECD. Yet now this urban-centric pattern may be slowing, and even reversing. Three critical factors are at play here. First, of course, the pandemic has weakened the appeal of urban life by the very logic of social distancing and higher levels of infections and fatalities. The second factor has been an alarming uptick in urban crime and disorder, particularly in the United States but elsewhere as well. Finally, there has been a move to dispersed and online work, which enables people and companies to shift their …

The Coming Post-COVID Global Order

The COVID-19 pandemic has devastated economics in the West, but the harshest impacts may yet be felt in the developing world. After decades of improvement in poorer countries, a regression threatens that could usher in, both economically and politically, a neo-feudal future, leaving billions stranded permanently in poverty. If this threat is not addressed, these conditions could threaten not just the world economy, but prospects for democracy worldwide. In its most recent analysis, the World Bank predicted that the global economy will shrink by 5.2 percent in 2020, with developing countries overall seeing their incomes fall for the first time in 60 years. The United Nations predicts that the pandemic recession could plunge as many as 420 million people into extreme poverty, defined as earning less than $2 a day. The disruption will be particularly notable in the poorest countries. The UN has forecast that Africa could have 30 million more people in poverty. A study by the International Growth Centre spoke of “staggering” implications with 9.1 percent of the population descending into extreme poverty as …