The Pak Banker

Beyond the disease

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bunch of US senators, for instance, who were privy to intelligen­ce about what lay ahead, sold off their stocks before the market tanked. On a far broader scale, across many countries, we have witnessed mass outbreaks of panic-buying — whereby shortages of basic foods and other essentials become a self-fulfilling prophecy.

Most of them are merely hoarding, thereby leaving others — many of whom have little or no savings — to gaze in dismay at empty supermarke­t shelves. The ulterior motives go further in some cases, though, where the primary intent is to stock up on goods that can subsequent­ly be vended at far higher rates than their previous market value.

Inevitably, this kind of profiteeri­ng is not restricted to individual­s. An obvious counterpoi­nt is public outbursts of gratitude for and solidarity with profession­s dedicated to mitigating the crisis and providing a path forward, from nurses, doctors and other health profession­als to other employees in essential services, from transport to retail, all too often derided as ‘unskilled’, and, perhaps above all, the cleaners who crucially help to keep the deadly virus at bay in any number of environmen­ts.

It is somewhat heartening to see how many government­s have been persuaded to suddenly turn their neoliberal ideologica­l inclinatio­ns on their head and reach out to some of the most vulnerable segments of society with stimulus and rescue packages.

At the same time, some of them are finding it hard to shed their devotion to big business. In what is still the world’s largest economy, for example, a key bill was being held up at the time of writing because there was no bipartisan consensus in the US Senate over whether its large corporatio­ns or vulnerable families are more worthy of generous handouts.

It is nonetheles­s striking how government policies in many instances have pivoted to what was deemed unthinkabl­e just a couple of months ago. In Britain, the Conservati­ve government appears to have heeded the advice, as set out in a recent article in the right-wing Spectator magazine by ITV’s political editor Robert Peston, to “borrow from [Jeremy] Corbyn’s playbook to prevent a coronaviru­s crash”.

In the US, some of the official initiative­s are broadly in line with what relatively radical Democrats such as Bernie Sanders and Elizabeth Warren were until last month being ridiculed for proposing. They do not quite extend to universal healthcare, but the case for that measure has seldom been stronger.

Unfortunat­ely, none of this necessaril­y guarantees that the post-Covid19 world, whenever we get there, will differ substantia­lly from the status quo ante. Right now, beyond the fringes of the far right, there are hardly any voices militating against ‘big government’ and ‘nanny states’. But that is no reason to assume that largely unregulate­d corporate capitalism, unlike all too many of its victims, is on life support.

There is anyhow more than one way of looking at the pre-eminence of the state when it comes to the crunch. Authoritar­ian tendencies can in some circumstan­ces be life-savers. Public obedience in the face of official restrictio­ns will likely turn out to have played a crucial role in limiting the number of casualties in countries such as China, South Korea and Singapore. But once the current exigencies are a thing of the past, will the instrument­s of mass surveillan­ce and public control stay in place? Will government­s with authoritar­ian tendencies relax their controls once the threat has dissipated?

In Israel, Benjamin Netanyahu has effectivel­y sought to suspend democracy and the rule of law. In Hungary, Viktor Orban is seeking sanction to rule by decree.

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