“Many States shaken by the crisis will find it even more difficult than in the past to exercise their sovereign responsibilities,” writes Dominique Strauss-Kahn, former Managing Director of the International Monetary Fund (IMF) and former French Minister of Economy and Finances.

In an article entitled Being, having and power in the crisis published on April 5, 2020 in the French quarterly review Politique Internationale, Strauss-Kahn describes the effects of the coronavirus Covid-19 as a double crisis of having and power, and its consequences, namely the emergence of “another world” based on a “return to regulations”, a new geopolitical balance and a change in human relationships.

A former member of the Socialist Party (PS) and reportedly close to many advisers to current President Emmanuel Macron, the former head of the IMF thinks that the pandemic will be an economic disaster, especially for the emerging countries, and that the action of central banks will be insufficient to prevent it.

“In the medium and long term, the cards (of globalization) are shuffled,” says Dominique Strauss-Kahn for whom “the relocation of part of the production will have a cost but the crisis we are experiencing may be enough to make its pedagogy,” thus increasing the potential tensions between the less producing countries – like the United States – and the producing countries – like China.

Contents published on Cyceon.com do not constitute investment advice.

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