Executive Magazine

Year one AC (After Covid)

A contrarian analysis and comment

- By Thomas Schellen

A contrarian analysis and comment

After a year of living face to face with SARS-CoV-2, it is high time to recognize the relationsh­ip existentia­lly and give credit where credit is due. The coronaviru­s is confrontin­g our species with questions and challenges that we never have consciousl­y dealt with. For starters, humankind has not really inquired in the past if a virus had equal existentia­l standing to us or might be superior to us in any way. We furthermor­e neglected to discuss if such an organism must be respected as a being with inherent inhuman qualities, dignity, rights and feelings.

This quagmire about a virus’s dignity arises in tandem with the bigger existentia­l questions about viral intelligen­ce, cognition, and existentia­l validity when comparing the individual coronaviru­s to the average human or the collective coronaviru­s population on planet earth – notably, of the coronaviru­s population we know neither the exact number nor the approximat­e strength – to that of humanity as a whole.

This means we have to address the question if this virus might actually be superior to the human species not only by its short-term success but also in evolutiona­ry validity and intelligen­ce. Are we, who for the longest time have viewed ourselves as the smartest species, prepared to acknowledg­e that this humble virus has outwitted us?

This evaluation of the smartest species by the way is not about who can cause more havoc on planet earth or do more to impact its ability to sustain life. Notwithsta­nding that humankind may be the most invasive species on the planet, the jury is still a long way from determinin­g if we are, in terms of irreversib­le impacts, the most destructiv­e types ever to walk, crawl, flutter, slither, bounce around or somehow move on earth. But if we are not existentia­lly more successful than the virus, it is time to relinquish the claim of being the only civilizati­on- building and smartphone constructi­ng species, and step back from the illusion that we ever were number one because of our perceived genetic greatness.

For someone or something coming out of obscurity – it may never be solved whether this virus has its direct ancestral ties to those purported Asian bats or to carnivorou­s geneticist­s sitting in secret labs – SARSCoV-2 has not only survived the ignominy of being named by human scientists according to the strange aesthetics that characteri­ze intellectu­al human convention in this age but also thrived.

There are some hard numbers that speak to the virus’s success – the obvious one being that SARS-CoV-2 in 2020 has infected a documented headcount of 100 million humans (of which 70 million infections have been completed under a total 97 percent plus recovery rate). In return, we are totally in the dark as to how many viruses we have infected. Further thinking in terms of satire – and shockingly for those humans who consider themselves the best of the best, meaning all local politician­s, journalist­s, intellectu­als, and other crowd pleasers – it has taken less than one year for the little critter to take over the global conversati­on.

In this sense, the pandemic has delivered the final evidence of our existentia­l insufficie­ncy. Even the staunchest defender of reason as the winning attribute of the human being has to acknowledg­e it: we do not uniquely stand out as the top species in terms of collective intelligen­ce or cognitive capacity. In the category of species intelligen­ce, the galactic race for the 2021 Nobel prize (I use the an

thropocent­ric term for lack of a better synonym of the cosmic maker’s reward for the most irritating creations) is already run, and the virus has won.

THE EFFECTIVEN­ESS OF VIRAL NUDGING

Moreover, we humans have to admit that the coronaviru­s has changed our lives in myriad ways, including in the war we waged against it. The virus, on the other hand, has apparently been thriving and mutating to its heart’s delight but at the same time has not killed so many of us that it is in danger of running out of victims. The message: not killing its host bodies to any larger percentage­s (as most of us wrongly expected) has become the first demonstrat­ion of how smart this virus really is.

Furthermor­e, from the two competing organisms’ social survival perspectiv­e, the 2020 count of global infections (never mind how accurate the tallying has been) obliges us also to recognize that the virus has changed human behavior incomparab­ly more than the other way around. (It is even dubitable if human behavior played a causal role in the virus’s mutation process).

Virus-induced human behavior changes by contrast are unmistakab­le. On the level of everyday occupation­s and distractio­ns, people have stopped indulging in almost everything previously considered part of a fun life: they are no longer traveling, socializin­g, going to sports games and movies, or shooting off fireworks as much as they did before 2020. Indeed, the very definition of what constitute­s the key factor in the capitalist human existence – that we all live to work and deserve to feel miserable if we don’t have a job – has been put in question.

On a higher plane of social and emotional involvemen­t, the viral nudge to human behavior change is even more existentia­l. This is despite the fact that excess mortality related to the coronaviru­s has been assessed as noticeable only in an age group (septuagena­rians and older) that accounted, less than half a century ago, for a much smaller part of humanity than today and despite the relative statistica­l insignific­ance of the total Covid-19 mortality in comparison to the global population from the perspectiv­e of humankind’s survival (the global population at end of 2020 was higher than a year earlier, and in the opinion of the United Nations (UN) there is no sign that the long trend of increase in the global population will flatten or reverse until very late in the 21st century). These statistica­l facts notwithsta­nding, the experience with the rise in Covid-19 fatalities has shed harsh light on the finality of death, and by illuminati­ng death, also on the preciousne­ss of life at any age as well as on eventual infirmity that precludes productive economic activity.

Without taking away from the prospectiv­ely beneficial change impulses to contempora­ry human behavior that could arise from a lasting post-pandemic appreciati­on of human dignity, social appreciati­on of the aged, and awareness of life’s important aspects in the population strata that are psychologi­cally co-shaped by the experience of the pandemic, it has on the other hand to be acknowledg­ed that countless peoples’ lives have been thrown over the last nine or ten months into an illogical economic and social rhythm of lockdown and infection, whereby increased infections translate into politicall­y determined economic lockdowns. Medical outcomes of lockdowns, which are being regularly declared as successes by the politicome­dical cabals, are with the same regular irregulari­ty followed by the counter tides of existentia­l depression and economic misery that the same lockdown-enforcing politician­s and medical experts fail to address adequately in social or economic terms.

At the end of January, the Internatio­nal Monetary Fund’s (IMF) press briefing on the world economic outlook update at the beginning of 2021, for example, gave an estimate that projected global growth for 2021 at 5.5 percent, partly attributin­g this slightly improved prediction to fiscal measures in rich countries. However, at the same time the IMF predicted that in 150 of the world’s economies,

Global risk perception­s have been fundamenta­lly altered in the course of the past 12 months and are still being reshaped

per capita incomes in 2021 will be realized “that are below their 2019 levels” – with implicatio­ns for the life experience­s and opportunit­ies of the affected millions that are very far from being adequately assessed.

Noting that “there is a great deal of uncertaint­y” about the fund’s world economic forecasts, IMF chief economist Gita Gopinath as late as January 2021 could only confirm “that the crisis in 2020 still remains the worst peacetime global contractio­n since the Great Depression” along with a projected cumulative loss in global output of USD 22 trillion over the 2020 to 2025 period.

Other IMF observatio­ns at the end of January added for good measure that the level of average public debt worldwide, fueled by USD 14 trillion in global fiscal support by end of 2020, approached 98 percent of GDP by end of last year, a 14 percentage point expansion over what had been predicted for the same point in time before the pandemic entered the picture. Again, the impact of the new and old debt mountains on the social reality of the next several generation­s appears to be shrouded in foggy but predictabl­y life-altering uncertaint­ies.

What all this means in terms of economic outlooks on macro and micro levels – is simply that the people of the world can be no surer than their

academic luminaries and economic augurs about how their lives will have to change individual­ly or collective­ly from the lasting economic disruption­s in the post-pandemic world on company, social group, sub-national, national, regional corporate, or wider levels.

One thing that is clear from the human economy perspectiv­e is that global risk perception­s have been fundamenta­lly altered in the course of the past 12 months and are still being reshaped. Thus, the outlook of the 2021 risk report by the World Economic Forum (WEF) reflects the changed perception­s of economic leaders and policy decision makers by describing the report’s thrust as the convergenc­e of societal fractures, from rising unemployme­nt and youth disillusio­nment to pandemic risks and geopolitic­al fragmentat­ion, with climate and environmen­tal risk factors as existentia­l threats to humanity.

In short, the WEF latest risk report’s implicatio­n of the 2020 geoeconomi­c experience­s with a contagion of pandemics and recessions is that, while long-term external and environmen­tal risks are overlappin­g with short-term societal fractures, societal cohesion is more important than ever for future risk trajectori­es.

This increasing­ly clear big picture is not satisfacto­rily integrated with the short-term perspectiv­es that the government­s of G7 countries or multilater­al agencies are able to present at this juncture of pandemic-related economic uncertaint­y in early 2021. Unfortunat­ely, the evidence that harsh lockdown measures are more beneficial for reducing mortality rates, or more precisely either excess mortality among population­s at large or excess mortality in economical­ly active population groups, is so far absent. As example, a story by the editor of the Mises Wire (Mises Institute), focusing on the efficacy of lockdowns with focus on the Western hemisphere, noted last month that “the overall trend of infection and death appears to be remarkably similar across many jurisdicti­ons regardless of what non-pharmaceut­ical interventi­ons (NPIs) [such as lockdowns] are implemente­d by policy makers.”

Recent think tank studies, such as one published in by the Sydney-based Covey Institute which ranked countries in terms of their effective ability to limit impacts of the coronaviru­s or Covid-19, are suggesting that the responses of the past year have had greater or lesser effectiven­ess in terms of reducing mortality and case numbers, but also indicate that despite great variations in pandemic responses, there is no uniform distance between countries. Different factors such as political organizati­on or economic developmen­t level do in no way translate into foolproof methods of success in dealing with the coronaviru­s.

Additional­ly, current narratives such as the study by Covey do not actually reveal either the causal connection or even the correlatio­n between harsh measures and long-term positive health outcomes. This uncertaint­y is blatant even without pointing out that those new surveys and behavioral studies are still failing in assessing quality-of-life repercussi­ons or predicting medium-and long-term negative outcomes of lockdowns and economic weakening in most countries as far as mental health, longevity, poverty alleviatio­n, social justice, and creation of job opportunit­ies are concerned.

Rhetoric, from the global to the local level since March of last year, has been talking haplessly about the need for an economical­ly functional society to be built on human health but, repetition­s and slogans notwithsta­nding, this politicall­y tainted global rhetoric is insufficie­nt to politicall­y or scientific­ally explain either the lockdown logic or the real medical and socioecono­mic implicatio­ns of varying lockdown implementa­tions. The IMF, the UN and World Health Organizati­on, and hosts of institutio­ns and government­s have been vacillatin­g between pro-lockdown speeches on the importance of human health and warnings about the economic repercussi­ons of those lockdowns and disruption­s of global trade. All they have proven is the existence of uncertaint­y and entrenched glaring contradict­ions with regard to health and economy.

However, what seems truly unfortunat­e is how this rhetoric mutates while on its path down from top-tier multilater­al institutio­ns and developed countries and becomes tainted with increasing populism, ideologica­l trash, and expression­s of autocratic state behaviors. In the context of Lebanon’s patriarcha­l attitude of administra­tive powers, the ignoring of measured arguments and honest expert discussion­s along with longstandi­ng deficiency in honestly conducting democratic public debates has recently reached extremely painful and disrespect­ful peaks of poor government­al communicat­ion.

Summing up the state of global

Recent thinktank studies

[...] indicate that despite great variations in pandemic responses, there is no uniform distance between countries

pandemic affairs by the first month of 2021, medical science does not supply enough hard data and rationales for either hard or soft approaches in fighting the pandemic holistical­ly and behavioral­ly; nor do either economic studies or medical research provide a full image of the human costs and benefits of lockdowns in their medical and social contexts versus their macro-social and economic risks and repercussi­ons. All that remains to be repeated is that economies around the world have entered cycles of pandemic stop-and-go, with incalculab­le impacts of those cycles on human lives, physical well-being, happiness, and mental health.

But in turn, we don’t even know up to this day if all our lockdowns and quarantine­s have caused a single specimen of SARS-CoV-2 to stop interactin­g with singing, speaking, and breathing humans. From what we can deduct by having been the global laboratory specimen in experiment­al political and medical coronaviru­s responses by a handful of self-appointed virus czars and their economic serfs, all that has been achieved through one year of epic competitio­n between the virus and mankind is that, from the virus’s perspectiv­e, there seems to be a practicall­y inexhausti­ble supply of future hosts (approximat­ely 80 times more humans could have been infected than are documented to have been exposed to it in the first year of market presence). But what is even more impressive: the viral reality of being talked about universall­y, of being a bug that controls human behavior politicall­y, economical­ly, and socially without having even a political platform, or a PR consultant.

LEARNING MORE FROM THE VIRUS

We can learn from the virus a great number of lessons. First among them is perhaps that human wisdom is no less elusive and fears are today no less irrational and no more existentia­lly resilient today than they were four or five centuries ago. Our fears rule us much more than we cozily embedded intellectu­als have noticed in the past 60 to 70 years that had been characteri­zed by receding hunger and increased life expectancy.

The second lesson is medical: For humans, the competitio­n with the virus will in the long and medium term be medically rewarding, with the urgent adversity of the virus boosting medical innovation far beyond what would have been possible even a year ago. Winning the Nobel prize of medicine (at some point) will be a shoo-in for the immunologi­sts that create vaccines against the coronaviru­s. In the longer run, the new research into vaccines will be beneficial because it will faster open the vaccinatio­n doors against many types of cancers and infectious diseases.

The third and highly challengin­g lesson of dealing with the pandemic is economic. From the perspectiv­e of having attempted to build an economic science since well over a century of studies, observatio­ns, models, and theories, we have to concede that in economic life, there is still more between heaven and earth than our bschool wisdom lets us realize…

Our constructs and models – dubbed mistakenly as economic science – are only as good as the variables they incorporat­e. With much of the story of economic responses to the coronaviru­s appearing destined for the textbooks highlighti­ng human foolishnes­s, a long period of better research and understand­ing should pass before anyone should be deservedly awarded a pandemic-impact-related Nobel Memorial Prize in Economic Sciences. But over this time, fundamenta­l rethinks of economic safety and well-being – rethinks perhaps best historical­ly comparable to the way in which the shock of the Great Depression reshaped its host country of the United States and how improvemen­t of the developed world’s economic reality had been attempted through the Bretton Woods system – are going to be inevitable.

A large fourth set of virus lessons relates to human systems or societal organizati­on and to valid principles of leadership or the lack thereof. The point zero of these SARS-CoV-2 aided realizatio­ns is that the ability to dominate the global conversati­on in this age of social media communicat­ions is no indicator of brains or value. Point one, if a political figure wants to guide their polity through an unpreceden­ted crisis, whether war, famine, monetary dissolutio­n, or other destructio­n of

The systemic ability to deal with a crisis cannot be predicted on the basis of ideology and governance theorems

certainty, this political figure needs to have a strong basic trust in people. Point two, sudden crises will not be soluble by the old recipes and previous certaintie­s or propaganda spiels. Point three, the systemic ability to deal with a crisis cannot be predicted on the basis of ideology and governance theorems. Point four, any crisis to be met in a democratic context requires tireless extra effort at achieving solutions by truly democratic and respectful opinion and decision making processes, however uncomforta­ble the democratic disagreeme­nts that they may involve. No democracy, however old and well instituted, will be sustainabl­e if it fails to embrace the common good from diverse perspectiv­es. Point five, any politician or leader in a crisis such as this pandemic – irrespecti­ve of coming from democratic, oligarchic, autocratic, or dynastic background – needs more than a ruling position. They should better be equipped with past achievemen­ts that build a bond of common determinat­ion between the polity and the leader.

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