COVID-19
Asia and the World After COVID
Date: May 8, 2020
How has the coronavirus pandemic transformed our societies thus far, and what new pressures will it spawn? Leadership responses have varied, as unprecedented demands on states, diplomacy and institutions create new trendlines for a new world. Global thought leaders Rajmohan Gandhi and Barnett Rubin share ideas on what to expect.
Struggling Times

Barnett Rubin is a Senior Fellow and Associate Director of Center on International Cooperation (CIC).
The U.S. will emerge from the pandemic only slowly with a weakened economy and a huge budget deficit, the magnitude of which will certainly impact credit markets. The US has postponed the deadline for filing income taxes, and the record high rate of unemployment means tens of millions of people are not paying payroll taxes, so the federal government’s revenue must be taking a dive, though we don’t have data yet. The revenue of the states, dependent on sales, excise taxes, as well as persona income taxes, have taken a “horrific” fall, gutting the financing of education, health, and other state subjects. Congress bills allocating $2.5 trillion (that’s 12 zeroes) for economic recovery, and it’s not enough. There will be trillions more. Taken all together it means that the US will not have the discretionary income it had in the past to project power.
At first, it looked like China would be strengthened by the pandemic. But now there are growing questions about how the closed nature of the Chinese system contributed to the spread of the disease. China’s aid diplomacy is faltering because of the large amount of faulty equipment it is supplying as it sends masks and other protective equipment around the world. There were already rising questions about BRI and CPEC, but now it is an open question how an economic policy based on connectivity will fare in an era of social distancing. Hence, it is not clear to what extent China will be able to benefit from the weakening of the US. The unfortunate conclusion is that just as transnational cooperation becomes more important than ever, there will be a vacuum in the leadership needed to produce it.
Compelled Solitude

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