The role of trade narratives in poverty reduction after the COVID-19 crisis

Scott Allen Hipsher

doi:10.1108/reps-09-2020-0147

Abstract

PurposeThis paper aims to explore different possible economic narratives concerning trade, which may emerge based on lessons learned from the COVID-19 crisis and likely effects of these differing narratives would have on global poverty reduction.Design/methodology/approachThis is a conceptual paper based on original analysis of selected literature.FindingsThe global response to the COVID-19 crisis of severely restricting international travel and business operations has been accompanied by slowing economic growth and increased levels of global poverty. Due to the nature of the crisis, it is not currently clear, even with hindsight, whether the measures taken have produced more benefits than problems. However, the pace and direction of the economic recovery and the effect on future levels of global poverty will likely depend to some extent on which narratives go viral and become accepted.Social implicationsMembers of academia as well as others have a role to play in creating and spreading narratives about economic activities and focusing on narratives, which do not ignore the plight of the global poor in the aftermath of the current crisis might have a positive effect on the living standards of the hundreds of millions of people living in poverty who have been affected by the current global economic slowdown.Originality/valueThe paper uniquely links ideas associated with behavioral economics, international business theories and empirical evidence with reducing poverty as we move past the COVID-19 crisis.

Highlights

This paper aims to explore different possible economic narratives concerning trade, which may emerge based on lessons learned from the COVID-19 crisis and likely effects of these differing narratives would have on global poverty reduction
Introduction: poverty reduction and COVID-19 The UN Sustainable Development Goal most likely to be directly addressed by multinational enterprises (MNEs) and other private sector actors involved in international trade would appear to be the first goal, to eliminate extreme poverty by 2030
The slowing of global economic activities due to the COVID-19 crisis has put into jeopardy the incomes of hundreds of millions of vulnerable people living below or just above official income levels used to measure extreme poverty (African Development Bank, 2020)

Summary

Introduction

This paper aims to explore different possible economic narratives concerning trade, which may emerge based on lessons learned from the COVID-19 crisis and likely effects of these differing narratives would have on global poverty reduction. The slowing of global economic activities due to the COVID-19 crisis has put into jeopardy the incomes of hundreds of millions of vulnerable people living below or just above official income levels used to measure extreme poverty (African Development Bank, 2020). Finding ways to contribute to reducing poverty in normal times is challenging, but the challenge has increased due to societies’ reactions to the COVID-19 crisis Under these circumstances, it might be accurate to classify our current situation as a “wicked problem,” using the definition provided by Rittel and Webber (1973). While the introduction of vaccines has been a cause for optimism, the economic fall-out after the health crisis fades is expected to be especially hard on the poor, who often work in the informal economy in less developed countries where there are few financial safety nets (Menon, 2020)

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