MANILA – At the beginning of the COVID-19 pandemic, analysts and pundits spun visions of how the crisis would reshape the global economy. Many heralded the opportunity to transform our financial systems, supply chains, and ways of working. The overall message was that the post-pandemic future would be greener, healthier, and more just.
Now, almost two years after the pandemic started, excitement about creating an economic “new normal” has mostly dissipated. Apart from occasional lockdowns and mask wearing, the world has largely returned to business as usual. The fight against the pandemic repeatedly has been described as a “war,” but there have been no radical changes akin to a wartime mobilization. On the contrary, the global pandemic response has operated under pre-pandemic economic norms. Despite urgent appeals for a “people’s vaccine” and repeated calls for vaccine equity, the rules of the market dominated vaccine distribution, and the pharmaceutical industry has marched on, unreformed.
Likewise, policymakers continue to act as if, to paraphrase Greta Thunberg, the world is not on fire. UN Secretary-General António Guterres described the latest report from the Intergovernmental Panel on Climate Change as a “code red for humanity.” Yet countries’ current Nationally Determined Contributions under the framework established by the 2015 Paris climate agreement are inadequate to achieve the Paris accord’s goal of limiting global warming to 1.5º Celsius, relative to preindustrial levels.
The ongoing United Nations Climate Change Conference (COP26) in Glasgow is the most immediate policy lever available. But the international climate regime needs to go beyond voluntary commitments to reduce emissions and make good on rich countries’ promise to provide financial assistance to the world’s poorest and most vulnerable.
I am not an economist. I am a physician who specializes in the new field of “planetary health,” which focuses on the links between human and planetary well-being. Its core premise is straightforward: protecting and improving our health requires tackling the underlying causes of human disease and ecosystem damage simultaneously.
The economy we have today is destroying our well-being. It unleashed human ingenuity, created financial wealth, and lifted billions of people from poverty. But it also damaged ecosystems and exacerbated social inequality. During the first year of the COVID-19 crisis, more than 114 million jobs were lost, while the world’s wealthiest became $5 trillion richer than they had been before the pandemic began. And by accelerating climate change and biodiversity loss, our current economy imperils future generations’ ability to survive and thrive. As a planetary health physician, I believe that the treatment for this disease is economic – not medical.
Enjoy unlimited access to the ideas and opinions of the world’s leading thinkers, including weekly long reads, book reviews, topical collections, and interviews; The Year Ahead annual print magazine; the complete PS archive; and more – for less than $9 a month.
Subscribe Now
During this pandemic, we have witnessed a dramatic surge in the use of personal protective equipment (PPE) – face masks and shields, gloves, and gowns that look like astronaut suits. But to truly recover, we also need a different kind of PPE – a people- and planet-centered economy. Because climate change and other forms of ecological damage increase the likelihood of future pandemics, this PPE would not just liberate us from the current crisis. The goal established by the World Health Organization’s Independent Panel for Pandemic Preparedness and Response – to make COVID-19 the last pandemic of its kind – depends on it.
A people- and planet-centered economy is one that advances the well-being of the entire Earth. It is an economy that has deep respect for the planet’s boundaries, such as the temperature limit enshrined in the Paris agreement. And it ensures that the basic daily needs of all people are met – for example, through universal health-care systems and redistributive social policies. The metrics of success for this PPE are not gross domestic product or per capita income, but the ability of children to grow up to reach their full potential or the restoration of species threatened with extinction.
An example of this PPE has already been proposed by Kate Raworth. Unlike the current economic model, with its limitless supply and demand curves, Raworth’s Doughnut Economy visualizes a narrow “safe and just space for humanity” that neither overshoots the planet’s boundaries nor falls short in meeting society’s basic needs.
Early in the pandemic, the city of Amsterdam committed to adopting the doughnut as its post-pandemic economic model. Since then, the city has implemented projects and policies ranging from the circular use of materials in building construction to reforms in the local fashion industry. The next challenge is to apply this model to low- and middle-income countries to ensure they fulfill their society’s needs without breaching planetary limits.
We have entered the “decisive decade.” Only nine years remain before we reach the deadlines set by the Paris agreement and the UN’s Sustainable Development Goals. We must use this critical period to design a true people- and planet-centered economy. The growing planetary health community has an important role to play in creating an alternative that will help us overcome the pandemic and ultimately meet the goals we have set for ourselves as a civilization.
OTTAWA – Statistics Canada says retail sales rose 0.4 per cent to $66.6 billion in August, helped by higher new car sales.
The agency says sales were up in four of nine subsectors as sales at motor vehicle and parts dealers rose 3.5 per cent, boosted by a 4.3 per cent increase at new car dealers and a 2.1 per cent gain at used car dealers.
Core retail sales — which exclude gasoline stations and fuel vendors and motor vehicle and parts dealers — fell 0.4 per cent in August.
Sales at food and beverage retailers dropped 1.5 per cent, while furniture, home furnishings, electronics and appliances retailers fell 1.4 per cent.
In volume terms, retail sales increased 0.7 per cent in August.
Looking ahead, Statistics Canada says its advance estimate of retail sales for September points to a gain of 0.4 per cent for the month, though it cautioned the figure would be revised.
This report by The Canadian Press was first published Oct. 25, 2024.
OTTAWA – The federal government is expected to boost the minimum hourly wage that must be paid to temporary foreign workers in the high-wage stream as a way to encourage employers to hire more Canadian staff.
Under the current program’s high-wage labour market impact assessment (LMIA) stream, an employer must pay at least the median income in their province to qualify for a permit. A government official, who The Canadian Press is not naming because they are not authorized to speak publicly about the change, said Employment Minister Randy Boissonnault will announce Tuesday that the threshold will increase to 20 per cent above the provincial median hourly wage.
The change is scheduled to come into force on Nov. 8.
As with previous changes to the Temporary Foreign Worker program, the government’s goal is to encourage employers to hire more Canadian workers. The Liberal government has faced criticism for increasing the number of temporary residents allowed into Canada, which many have linked to housing shortages and a higher cost of living.
The program has also come under fire for allegations of mistreatment of workers.
A LMIA is required for an employer to hire a temporary foreign worker, and is used to demonstrate there aren’t enough Canadian workers to fill the positions they are filling.
In Ontario, the median hourly wage is $28.39 for the high-wage bracket, so once the change takes effect an employer will need to pay at least $34.07 per hour.
The government official estimates this change will affect up to 34,000 workers under the LMIA high-wage stream. Existing work permits will not be affected, but the official said the planned change will affect their renewals.
According to public data from Immigration, Refugees and Citizenship Canada, 183,820 temporary foreign worker permits became effective in 2023. That was up from 98,025 in 2019 — an 88 per cent increase.
The upcoming change is the latest in a series of moves to tighten eligibility rules in order to limit temporary residents, including international students and foreign workers. Those changes include imposing caps on the percentage of low-wage foreign workers in some sectors and ending permits in metropolitan areas with high unemployment rates.
Temporary foreign workers in the agriculture sector are not affected by past rule changes.
This report by The Canadian Press was first published Oct. 21, 2024.
OTTAWA – The parliamentary budget officer says the federal government likely failed to keep its deficit below its promised $40 billion cap in the last fiscal year.
However the PBO also projects in its latest economic and fiscal outlook today that weak economic growth this year will begin to rebound in 2025.
The budget watchdog estimates in its report that the federal government posted a $46.8 billion deficit for the 2023-24 fiscal year.
Finance Minister Chrystia Freeland pledged a year ago to keep the deficit capped at $40 billion and in her spring budget said the deficit for 2023-24 stayed in line with that promise.
The final tally of the last year’s deficit will be confirmed when the government publishes its annual public accounts report this fall.
The PBO says economic growth will remain tepid this year but will rebound in 2025 as the Bank of Canada’s interest rate cuts stimulate spending and business investment.
This report by The Canadian Press was first published Oct. 17, 2024.
