Pillars of the Post-Pandemic Economy

SOVEREIGN WEALTH FUNDS 2020

10 Pages Posted: 28 Mar 2021

See all articles by Paul Rose

Paul Rose

Ohio State University - Moritz College of Law; Bocconi University - BAFFI Center on International Markets, Money, and Regulation; Tufts University - The Fletcher School of Law and Diplomacy; FundaciĆ³n Instituto de Empresa, S.L. - IE Business School

Date Written: 2020

Abstract

The COVID-19 pandemic has had profound effects on economies around the world. The total economic impact of the pandemic, in terms of loss in gross domestic product, could be as much as $82 trillion, and many governments will be facing budgetary shortfalls for years. The ultimate impact is expected to be much greater than the financial crisis of 2007-2008 in both size and scope.

While nearly every country in the world has experienced tremendous human and economic costs from the COVID-19 pandemic, some countries struggled more than others, both in their efforts to contain the virus, and in developing a financial response. Lockdowns resulted in severe oil price declines, and the currency values of a number of developing economies plummeted in the early weeks of the crisis.

Sovereign investment practices will undoubtedly change as a result of the severe economic shock of the pandemic. But in some cases, the pandemic did not instigate change so much as hasten changes that were already underway. Importantly, the pandemic has highlighted the importance of logistics, both in terms of how physical goods are stored and delivered, but also in how digital goods, such as Netflix films or work files stored on company systems, are accessed on demand from housebound consumers and workers.

This review, prepared for the 2020 Sovereign Wealth Funds Report, describes how the pandemic has been both a tipping point and an accelerator for permanent changes in the way we eat, shop, and work. All of these changes will bring opportunities, however, and sovereigns are working to both take advantage of these changes to secure investment gains for their portfolios as well as to effect permanent changes in their economies to support development over the long term. The full report is available at: https://www.ie.edu/cgc/research/sovereign-wealth-research/.

Keywords: sovereign investment, logistics, supply chains, strategic investment, foreign direct investment, investment laws, foreign investment screening

Suggested Citation

Rose, Paul, Pillars of the Post-Pandemic Economy (2020). SOVEREIGN WEALTH FUNDS 2020, Available at SSRN: https://ssrn.com/abstract=3811511

Paul Rose (Contact Author)

Ohio State University - Moritz College of Law ( email )

55 West 12th Avenue
Columbus, OH 43210
United States

Bocconi University - BAFFI Center on International Markets, Money, and Regulation ( email )

Milano, 20136
Italy

Tufts University - The Fletcher School of Law and Diplomacy ( email )

Medford, MA 02155
United States

FundaciĆ³n Instituto de Empresa, S.L. - IE Business School ( email )

Calle Maria de Molina 12, Bajo
Madrid, Madrid 28006
Spain

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