Advisors from foreign trade are suggested for Coronavirus governmental strategies
The Federal Association of Wholesale, Foreign Trade, and Services (BGA) has proposed a stronger consideration of economic expertise in the fight against the Corona pandemic. The President of the BGA, Anton Börner, has been vocal about the need for improved procurement, logistics, and distribution, citing weaknesses in state capacity, outdated systems, and administrative inefficiencies that have hindered relief efforts during the pandemic [1].
Economic expertise is crucial for effective procurement and logistics, particularly in securing medical supplies and vaccines. Understanding complex market dynamics, supply chain constraints, and price fluctuations is essential to avoid scarcity, increased costs, and uneven distribution [1]. In distribution, coordinated administrative capacity and data-driven decision-making are key to ensuring aid, medical products, and vaccines reach populations in need efficiently.
Strong economic and administrative skills also enhance the credibility and durability of policies, encouraging investment and compliance while maintaining political consensus beyond election cycles [1]. Expertise can help governments respond to economic shocks such as scarcity nationalism, where countries impose export restrictions or preferential import policies, which can raise trade costs and reduce global availability of critical goods [3].
Building state capacity also involves modernizing data systems and administrative frameworks to reduce burdens on recipients and prevent fraud, ensuring relief efforts are timely and effective [1]. The consequences of lacking such expertise include administrative bottlenecks, increased vulnerability to fraud, loss of public trust, economic disruptions, and reduced ability to coordinate international cooperation in procurement and distribution of essential goods and vaccines [1][3].
Börner has been critical of the EU's inability to negotiate on an equal footing with vaccine manufacturers like Pfizer and has stated that politicians are not trained for procurement negotiations [2]. He believes that managers, trained to handle uncertainties, should be involved in key positions in the fight against the pandemic [2].
In addition to advocating for economic expertise, the BGA has proposed more flexibility in the Bundestag election, lowering taxes, better conditions for small and medium-sized enterprises, and improved conditions for investments in research and development [4]. However, the BGA has not suggested any specific changes to the planned supply chain law in its proposals [4].
Börner has also expressed criticism of the perfectionism in the fight against the pandemic, stating that it costs time, money, and lives [2]. He believes that the state has shown it does not master management and that the structures are not suitable for dealing with real catastrophes quickly and efficiently [2].
References:
[1] OECD Policy Responses to Coronavirus (COVID-19) (2020). Retrieved from https://www.oecd.org/coronavirus/policy-responses/
[2] Börner calls for more economic expertise in the fight against Corona (2021). Retrieved from https://www.bga.de/en/news/borner-calls-for-more-economic-expertise-in-the-fight-against-corona/
[3] World Trade Organization (2020). Retrieved from https://www.wto.org/english/news_e/news20_e/dac_07nov20_e.htm
[4] BGA presents election proposals for more flexibility, lower taxes, and better conditions for investments in research and development (2021). Retrieved from https://www.bga.de/en/news/bga-presents-election-proposals-for-more-flexibility-lower-taxes-and-better-conditions-for-investments-in-research-and-development/
- The proposal by the Federal Association of Wholesale, Foreign Trade, and Services (BGA) highlights the importance of economic expertise in managing the distribution of critical supplies, including medical equipment and vaccines, during crises like the Corona pandemic.
- In the face of complex market dynamics, supply chain constraints, and price fluctuations, an understanding of economic expertise is crucial to prevent scarcity, increased costs, and uneven distribution.
- Strong economic and administrative skills are also vital in crafting policies that encourage investment, maintain political consensus, and prevent fraud during relief efforts, ensuring aid and vaccines reach the populations in need efficiently.
