Organisation for Economic Co-operation and Development

DOCUMENT CODE

For Official Use English - Or. English

COVID-19 pandemic

OECD Strategic response

The aim of this note is to start a dialogue with Members and Partners on how both to emerge

from the crisis as quickly and smoothly as possible, as well as to pre-position our economies

and societies for the new and different global and national challenges that must be confronted

after the health crisis has passed – not least the ones we have to confront together.

This document, as well as any data and map included herein, are without prejudice to the status of or sovereignty over any territory,

to the delimitation of international frontiers and boundaries and to the name of any territory, city or area.

2

Executive Summary

The coronavirus (COVID-19) pandemic is causing severe human suffering on a frightening

scale. It is a combined public health and economic crisis without precedent in terms of its

global reach and scale, which is testing our collective capacity to respond. In addition, the

crisis has laid bare a number of vulnerabilities in our economies and societies that may

have amplified its impact. This has underlined the importance of urgent action to mitigate

the economic impact of the crisis, focussed on those likely to be hardest hit. Within each

country, this includes workers in precarious jobs, the self-employed, and small and

medium-sized enterprises. At the international level, it will be essential to help low-income

and emerging countries deal with the pandemic.

At the national level, governments have already taken commendably bold measures. Many

countries have declared national emergencies to contain the spread of COVID-19 and put

in place short-term measures to buffer shocks to the health system, the economy and

financial markets. There has also been a recognition of the need for international

coordination to address this global threat. G7 leaders have already committed to ensuring

a “strong global response” and called for the support of international organisations to help

countries worldwide as part of that response. It is now time to flesh out and deliver this

response. The OECD is uniquely placed to contribute to such efforts, given its rich

experience and multi-disciplinary expertise in providing evidence-based analysis and

advice in addressing structural issues of the economy and society.

As an initial step in this direction, the present framework paper provides a synthesis of the

immediate policy measures that could be part of an effective response, many of which

countries have already adopted (Section 2). It further outlines key challenges for health,

structural, and macroeconomic policies that countries will need to address in the medium-

to long-term, including through multilateral cooperation (Section 3). Finally, the paper

contains a list of policy notes the OECD is producing to help its Members and Partners

address specific issues in a number of relevant policy areas (Annex). All of this is part of

the wider OECD response to the crisis, which aims to provide timely and comprehensive

information on policy responses in countries around the world, offer recommendations in

areas of OECD expertise and contribute to the necessary global action, drawing on the same

degree of ambition and sense of international solidarity that created the OECD itself.

The aim of the note is also to start a dialogue with Members and Partners on how both to

emerge from the crisis as quickly and smoothly as possible, as well as to pre-position our

economies and societies for the new and different global and national challenges that must

be confronted after the health crisis has passed – not least the ones we have to confront

together.

3

1. Introduction

1. As the number of cases confirmed worldwide continues to increase at a fast

pace, the coronavirus (COVID-19) is causing severe human suffering, with serious

implications for people’s health and quality of life as well as for the global

economy. Vulnerable populations, such as children, elderly, people with poor

health and low income, are particularly at risk.

2. The OECD Interim Economic Outlook downside scenario released on 2

March 2020 projected that global GDP growth in 2020 could fall to 1.5% (assuming

an intensive outbreak across Asia-Pacific, Europe and North America). An even

more adverse scenario is now more likely, with confidence plummeting and many

countries introducing unprecedented containment measures that have resulted in

widespread shutdowns. In a rapidly changing environment, it is extremely difficult

to quantify the exact magnitude of the impact of the crisis on growth. Sectoral

estimates of the impact of the lockdown suggest that the level of GDP could be

reduced by 15 - 25%. These imply that annual GDP growth could be hit by up to 2

percentage points per month of containment.1

3. On 11 March, the World Health Organization officially characterised the

COVID-19 as a global pandemic, urging governments to step up action and calling

for greater international cooperation in response. Some countries have declared

national emergencies to cope with the crisis.

4. On 16 March, G7 leaders issued a statement on the health and economic

risks and challenges related to the COVID-19 pandemic. They committed to a

“strong global response” through “closer cooperation and enhanced coordination”.

The aim is to protect people’s health and safety by enhancing information-sharing

in the health sector, delaying the spread of the virus, strengthening health systems,

promoting research efforts, and ensuring new drugs and vaccines will be widely

available. G7 leaders also promised to do “whatever it takes” to address the

economic impact, “mobilising the full range of instruments, including monetary

and fiscal measures as well as targeted action”, calling on central banks to provide

the necessary monetary measures, and on finance ministers and international

organisations to coordinate. They also promised to “address disturbances in

international supply chains” and “build the foundation for stronger future growth”.

They also called on the G20 to support and amplify G7 efforts. In this regard, there

is an agreement to develop an Action Plan of G20 Ministers of Finance.

5. It is essential that countries take rapid action to minimise the suffering of

the sick, of families, workers and enterprises. By buffering the downturn, measures

should help economies recover faster and better. Together with a sense that the

epidemic is addressed, the measures will contribute to improve people’s and

financial markets’ expectations about the health and economic outlook in the future.

These measures should underpin trust in institutions and safeguard people’s well-

1 A more precise quantitative analysis of new risk scenarios is not possible at this point in time. We

are monitoring the evolution and intend to come up with a fuller picture for the next Economic

Outlook.

4

being. All this requires our strategies to be ambitious, comprehensive, consistent,

as well as coordinated, wherever necessary, internationally.

6. OECD governments have taken emergency measures to contain the spread

of COVID-19, for example closing down schools, shops and institutions, applying

travel restrictions or bans and implementing border closures and encouraging social

distancing and teleworking. In addition, most countries have been putting in place

short-term measures to buffer the health shocks created by COVID-19. Finally, and

in light of the sharp deterioration in market conditions and the global economic

outlook, global leaders have taken unprecedented fiscal, monetary and financial

policy measures to get ahead of the curve and to halt a collapse in confidence.

7. The Secretary-General has called on countries to take decisive policy

action jointly and urgently in repeated instances to counter the pandemic.

Moreover, the OECD is closely monitoring the immediate measures that countries

are implementing in response to this crisis. It has created a dedicated web platform

to support member and partner countries, with information on national measures

and policy papers that contain relevant analysis and advice (see Annex for an

overview). 2 A stocktake of all the measures taken by countries and by sectors will

also become available on the platform.

8. A synthesis of the main policy responses is provided in Section 2 of this

paper. The crisis has laid bare a number of vulnerabilities in our economies and

policies that may have amplified the impact of the COVID-19 crisis, and which will

need to be addressed. The resilience of our health systems, value chains, trading

relations and finances appears not to have been sufficient for preventing this crisis

while other threats such as climate change continue to loom large. The crisis has

also shown that we do not sufficiently understand the mechanism on how contagion

comes about and how to handle it.

9. Section 3 of this paper looks at the reconstruction of our economies,

framing medium- to long-term challenges as regards health, structural, and

macroeconomic policies and the multilateral coordination around it. Undertaking

evidence-based analysis and advice in these areas (in a dialogue with members) is

the main comparative advantage of the OECD and the best service we can provide

for sustainable and inclusive growth in the post-crisis world.

2 For the dedicated OECD platform, please see: http://www.oecd.org/coronavirus/en/

5

2. Synthesis of short-term policy responses

10. OECD governments have taken emergency measures to contain the spread

of COVID-19. All governments have also taken measures to strengthen health care

systems and reorient R&D funding. In addition, in line with the OECD Interim

Economic Outlook policy recommendations, most governments have provided a

buffer to the economic downturn via targeted fiscal and financial support measures,

while all OECD central banks are providing monetary policy and/or liquidity

support to their economies, banks and enterprises. While the figures remain very

much in flux, expansionary macro policies already amount to trillions of US$,

equivalent to several percentage points of global GDP. The following is a synthesis

of these measures, most of which have already been taken or are currently being

taken by countries.

I. Measures to support the health care sector and health care workers

1. Financing and affordability of care for all

i. Provide additional funding for health care to help rapid deployment of

resources and surge capacity.

ii. Reduce financial barriers to access and treatments.

2. Improve capacities in the health system: staff, supplies and spaces

i. Staff: mobilise inactive health professionals, adapt the roles and

responsibilities of health providers and protect the health of health worker,

including by providing special childcare for healthcare workers; provide

financial incentives/support tax concessions for over-time work in health

and other emergency-related sectors, including a partial exemption of labour

incomes from personal income taxation and social security contributions.

ii. Supplies: boost the provision of required supplies and equipment to

diagnose and treat patients safely, such as diagnostic testing and ventilators,

while ensuring continued availability of essential medicines. Eliminate trade

barriers on medical supplies.

iii. Spaces: boost spaces to diagnose people safely and efficiently, to isolate

suspected and confirmed cases, and to treat patients in hospitals or their

home; delay non-essential services/operations.

3. Leverage digital data and tools to improve surveillance and care

i. Use routine and big data for early warning and surveillance as well as digital

diagnosis

ii. Monitor people who have been diagnosed

4. Implement effective R&D policy for vaccines and treatments

i. Allocate more resources for public and private research, improve R&D

processes, including strengthened international collaboration, and

6

encourage sustained long-term investment to prepare for future outbreaks

(analogous, e.g. to the G20 Anti-Microbial Resistance Agenda to address

market failure).

ii. Accelerate approval processes across countries and public funding to boost

the development of vaccines and treatments, in exchange for commitments

to make them widely available and accessible once approved.

iii. Encourage global collaboration and sharing of results, to avoid international

competition to access any new vaccines and treatments.

5. Enhance transparency and provide responsible communication of scientific

evidence and of advice to policymakers and to the public

II. Measures to support vulnerable people and workers

1. Reducing workers’ exposure to COVID-19 in the workplace

i. Relaxing existing regulations or introducing new options for teleworking.

ii. Encouraging employers’ organisations to inform their members of the

benefits of telework and to offer assistance.

iii. Providing, or encouraging unions and employers to negotiate guidelines to

reduce workers’ exposure in those workplaces where telework is not

possible.

i. Providing financial and non-financial assistance to small and medium-sized

enterprises (SMEs) to help them quickly develop teleworking capacity and

effective teleworking routines.

ii. Collaborating with technology companies to provide SMEs and the self-

employed with free and rapid access to communication and sharing tools.

2. Providing income replacement to sick workers

i. Extending paid sick leave coverage to nonstandard workers, including the

self-employed.

ii. Extending the duration of paid sick leave or waiving waiting periods and

aligning them with quarantine and medical recommendations.

iii. Adapting reporting requirements to access paid sick leave, e.g. by waiving

the need for medical certification.

3. Providing income replacement to quarantined workers who cannot work from

home

i. Adapting regulations to ensure that quarantined workers have access to paid

sick leave.

7

ii. Reimbursing employers if they provide paid sick leave to quarantined

workers.

iii. Ensuring that non-standard workers in quarantine receive support

4. Supporting workers and families with caring responsibilities

i. Offering public childcare options to working parents in essential services,

such as health care, public utilities and emergency services.

ii. Publicly providing alternative care arrangements.

iii. Offering direct financial support to workers who need to take leave.

iv. Giving financial subsidies to employers who provide workers with paid

leave.

v. Adapting telework requirements to workers’ caring responsibilities in terms

of working hours and work-load.

5. Help secure jobs and income as firms struggle

i. Introducing, extending and temporarily relaxing participation and

conditionality requirements in short-time work schemes.

ii. Simplifying procedures and provide easy access to online information for

employers.

iii. Promoting the uptake of online training to invest in the skills of employees

during the downturn.

iv. Facilitating rapid recruitment of staff to replace sick workers in core

functions.

6. Protect workers and families who lost their jobs or self-employment income

i. Extending access to unemployment benefit to non-standard workers (such

as temporary workers and the self-employed)

ii. Providing easier access to benefits targeted at low-income families.

iii. Considering one-off payments to affected workers and vulnerable groups

iv. Reviewing the content and/or timing of reforms restricting access to

unemployment benefits that are already scheduled.

v. Helping economically insecure workers stay in their homes by suspending

evictions and deferring mortgage and utility payment.

8

vi. Implement responses to ensure that households can remain in their

dwellings. Introduce measures to support and shelter the homeless.

7. Providing financial support to firms affected by the crisis

i. Deferring tax and social contribution payments

ii. Setting up financial facilities to temporarily support companies’ liquidity

III. Measures to help industries and firms including SMEs and the self-

employed

1. SMEs and hard hit sectors

i. Relax financial constraints on SMEs by providing easier loan conditions by

public institutions, interest-free loans, public guarantees, credit mediation

and enhancement, including government backed trade finance and working

capital for SME exporters.

ii. Support affected sectors, SMEs, and their employees by reducing working

hours, facilitating and implementing income support in the event of

temporary lay-offs and sickness, and sharing information on prevention and

containment of the disease.

iii. Provide targeted support to hard-hit sectors such as tourism by extending

short-term specific financial support for businesses (e.g. provision of

guarantees, government support to marketing and business promotion,

governmental funds).

iv. Regulators and supervisors could temporarily adjust underwriting standards

guidance to allow banks to extend credit to SMEs and higher-risk borrowers,

and to encourage more flexible payment arrangements where borrowers face

liquidity shortages.

2. Tax relief and ease the burden on taxpayers

i. Waive or defer payroll related taxes, including social security contributions.

ii. Provide additional time for dealing with tax affairs adjusting tax filing and

payment requirements and advance payment schemes, providing quicker

refunds to taxpayers, enhancing taxpayer services and implementing clear

communication strategies.

iii. Other measures that are being/could be considered: deferring or waiving

taxes levied on fixed tax bases (like property or property transaction taxes),

and increasing the generosity of loss carry-forward and bad-debt-relief

provisions.

3. Corporate support

i. Channel cash on a timely basis via a combination of equity, debt and

guarantees to affected businesses. Programme design that emphasises

9

transparency, precision and avoiding moral hazard is central to

effectiveness. Agencies involve banks, development banks and SME loan

agencies.

ii. Temporary regulatory relief and assistance for company issuers affected by

COVID-19, such as allowance by market regulators of brief extensions in

public filings.

iii. Encourage businesses to take necessary support measures for foreign

affiliates and operations, for example by extending loans or inject equity.

IV. Macroeconomic and supervisory policy measures to deal with supply and

demand shocks to the real economy and financial markets

1. Role of the fiscal authorities: Apply targeted fiscal support to protect people and

sectors most severely impacted in the best possible way (see above for further, more

specific fiscal support measures).

i. In the very short term, measures take into account the limits to supply and

demand in certain sectors

ii. Thereafter, consider the type of approach needed in the post-crisis

environment

2. Monetary and supervisory authorities

i. Adjust monetary policies to avoid credit and liquidity issues, such as through

lowering policy rates and engaging/stepping up bond purchasing

programmes.

ii. Provide immediate central bank liquidity to financial institutions that need

short-term funding.

iii. Launch/expand special facilities to incentivize banks to continue lending to

SMEs, to avoid them going under, such as through a targeted lending

program at preferential rates.

iv. Adjust monetary policy measures to address financial market segments dis-

functioning

3. Financial regulators

i. Adjust financial regulation and its supervision to maintain credit provision,

protect liquidity of non-financial firms, and facilitate access to and

maintenance of essential financial services, for example, by allowing

delayed loan repayment, enabling fast processing of insurance benefits,

and allowing delayed payment of insurance premiums.

ii. Support banks to temporarily ease repayment terms to businesses and

households. This effort has been combined with partial guarantees.

10

V. Other measures to maintain normality and restore confidence

1. Formulate an effective and credible public information campaign for whole-

of-government.

2. Strengthen government coordination:

i. Establish a clear response strategy and action plan for government

coordination, including crisis management cells and coordination

mechanisms; data sharing and interoperability, effective monitoring and

evaluation of strategies.

ii. Ensure access to credible evidence, using authoritative scientific

advisory committees, and promote accountability;

iii. Establish effective and inclusive institutional mechanisms, including

accelerated legislative action as appropriate;

iv. Strengthen horizontal and vertical inter-governmental coordination and

policy coherence across sectors and levels of government;

v. Ensure that tools and measures to anticipate and address trade-offs

between policy areas and transboundary impacts of policies are

developed;

3. Avoid unnecessary trade restrictive measures that risk to further undermine

confidence and increase costs. Reduce costs via trade facilitation and ensure the

adequate supply of trade finance.

4. Adapt procurement strategies to ensure the continuity of public service

provision and manage supply disruption risks, for instance by:

Placing greater emphasis on contract and supplier relationship management;

Conducting a supplier mapping to identify those located in high risk areas;

and

Using joint procurement to generate economies of scale by aggregating

individual needs of countries or institutions and create bigger purchasing

volumes.

5. Ensure that agro-food supply chains continue to operate normally, including

by bringing food into quarantined areas as well as monitoring food prices and

markets, and disseminating information on food availability.

6. In education, maintain, even when schools are physically closed, meaningful

teaching and learning experiences for children and develop the capacity for

distance education and online delivery, by:

i. deploying online learning at scale and using online educational

platforms;

ii. providing targeted support to disadvantaged learners;

iii. enhancing digital learning opportunities and other training for teachers;

11

iv. collaborating internationally and with the technology sector to mutualise

open educational resources and digital learning platforms;

v. using the school infrastructure to offer day care for children of essential

staff (e.g. healthcare staff) as well as for vulnerable children

7. In competition policy, communicate clear guidance on the potential implications

of emergency state aid measures as well as monitor anti-competitive conduct and

exceptional measures in public procurement/investment to prevent abuse and

enable fair and efficient markets.

8. Ensure integrity and mitigate high risks of corruption and abuse, especially

in the health sector.

9. Support and protect the digital infrastructure and its use at this critical

point. Work with telecommunications carriers, Internet service providers and

“over-the-top” services to ensure connectivity and the integrity of networks. This

may include relaxing data caps, continuing basic service for those who cannot

pay bills and degrading the quality of data-intensive services such as video

streaming. ‘

10. Specific actions to reach the most vulnerable. Many measures have been taken

to people who are financially vulnerable, who need multiple types of social

support at a time when COVID-19 puts additional pressure on systems, who lack

connectivity to digital services, and who need to balance child care with work

obligations (see above).

12

3. Part 2: Medium term policy issues for consideration

11. Notwithstanding the appropriate immediate policy measures taken, the

COVID-19 pandemic has revealed large vulnerabilities and risks in health care

system, the economies and societies of OECD countries and the world more

broadly. Once the crisis is over, it is essential that we draw from the right policy

lessons so as to regain sustainable growth, build resilience, and maintain and bolster

people’s well-being.

12. We will need to re-think our pandemics related health policies and

capacities. Businesses and governments will need to review the reliability and

sustainability of supply chains for essential goods and services and enhance their

resilience. Some companies may have survived on government support but may

find it difficult to resume their activities as before. There will likely be disruptions

and relocations within and between our economies that need to be managed in the

national and multilateral context.

13. Gradually eliminating crisis-related restrictions on the free movement of

goods, services and people will help restart global value and supply chains and

activities in some sectors. The question is, however, whether countries will try to

permanently lower their dependency on international supply chains resulting in a

retreat of globalisation. If this went beyond a limited number of essential goods and

services it could have major adverse consequences.

14. One critical question, particularly beyond the short term, is how to manage

the inevitable trade-off between containment of a pandemic and maintaining

economic and social activities. Medium to longer-term policy should strive to focus

on how to restore normality and allow for sustainable growth without risking

further outbreaks. Confidence will be strengthened if there is a sense that lessons

have been learnt and we are better prepared for this type of crisis.

15. There may be opportunities for governments, businesses and individuals,

who could leverage new technologies and embrace new working methods and

facilities. This, in turn, could reinvigorate growth and facilitate mastering the

challenges of the post-crisis world. All these factors relate to the role of government

and the market in the economy.

16. The aftermath of the crisis may help or interfere with the achievement of

international climate-related objectives. There will certainly be lower emissions in

the short run due to the sudden drop in economic activity. The long-term

environmental implications will depend on how the recovery is managed, but there

is a genuine opportunity to make decarbonisation part of it. It will also be important

that countries do not roll back environmental standards, but size the opportunities

of vigorous investment plans to address environment related issues.

17. However, there will be a number of challenges.

18. There are going to be social and distributional challenges. The pandemic

inevitably hits the low-income, underprivileged population, those who lose their

work and many SMEs in the services sector the hardest. It can significantly deepen

the existing economic and social pressures on the more vulnerable or less

privileged. In an environment of higher public debt, there might also be challenges

13

to adapt government priorities, especially public safety nets and public sector

programs, which have proven so necessary in managing the consequences of the

virus outbreak.

19. The challenge of reconstruction will be exacerbated by an even higher

stock of debt in the private sector, lower asset prices and renewed experiences of

financial turmoil. It is therefore essential that there will be a clear path to exit the

extraordinary support and deal swiftly with emerging financial sector weaknesses,

prevent the prolongation of measures and distortions driven by vested interests,

and, thereby, enhance financial resilience in our economies.

20. Finally, the crisis is happening in an environment of increasing trade and

political tensions around the globe that could be exacerbated by a further backlash

against open markets and global value chains and the temptation of isolationism.

And international coordination on other issues could have, at times, been faster and

better coordinated. There is a greater need for multilateral collaboration and

coordination on health and economic security and possibly in other areas as well.

The onset of the crisis may have revealed a lack of coordination in managing the

spread of the virus, resulting in delayed reaction, uncoordinated border closures, as

well as a lack of means for tackling the surge of patients in difficult conditions.

21. There is much to learn from each other in many areas. As mentioned, G7

leaders have underscored their commitment to cooperation and reform beyond the

short term and called upon G20 support in their recent conference call, which is

reassuring. This requires follow up with action, based on sound evidence and

advice. The OECD has worked extensively in addressing such structural issues of

the economy and society over the years, and provided evidence based analysis. The

OECD can help countries, making use of its research and convening capacity in

dealing with many of the cross-sectoral and multinational issues where

international learning and cooperation seem particularly fruitful.

22. The list below does not aim to be exhaustive but to provide examples of

areas where the OECD could start thinking about the future and discuss some

paradigm changes that may be occurring. While it points out main potential

challenges, it does not aim to present the current OECD view on these issues. Close

coordination with other international organisations would be called for.

National themes

Macroeconomic themes

23. Macro-economy: macro-policies will have entered new paradigms with

further extension of the monetary policy tool box, and possibly some form of debt

monetisation. Preparing for the reconstruction and the next economic challenges

will require a thorough analysis of these policies. Given the likelihood of high

deficits and debt, what are the best avenue to enhance the quality of public finances

and fiscal resilience?

24. Macro-financial policies: managing non-performing loans (NPLs) and

banking sector strengthening will be essential. States may have taken equity stakes

in many corporate or will have seen their guarantee called. In this environment,

how to promote corporate restructuring and financial stability and resilience (see

below)?

14

Structural, social and governance themes

25. Design and capacity building of health systems: enhance agility and

preparedness of health systems to face future shocks, enhance capacities for disaster

risk management, promote the use of data and digital technologies to improve

surveillance, research and care; strengthen international cooperation to prevent and

prepare for a re-occurrence of pandemics (see below).

26. Transformation of business models and/or severe restructuring in

certain sectors including aviation, tourism, entertainment, energy and retail

commerce; mobility of people and transportation systems where post-crisis demand

and supply conditions may be different. Considerations over global value chains

diversification.

27. Digitalisation and the use of AI: many sectors will be transformed,

including the health sector and education, contributing to post-crisis growth,

productivity and resilience. Work practices will change, requiring much greater

digital skills and a framework for new work practices and business models, and

protocols for data sharing.

28. Education and skills: Enhance the digital transformation of education and

training; including the quality of online education tools and instructional resources,

innovation in teaching and learning environments, teachers’ professional

development, fostering digital and scientific competencies, social and emotional

skills, and lifelong learning. Target progress in particular to the vulnerable and

disadvantaged learners.

29. Social and distributional implications, well-being and care of the

elderly, youth and children: foster the resilience and adaptability of social

protection systems to better target the most vulnerable and, in the future, better

withstand a shock like the Covid-19 crisis. Given ageing populations, maintaining

the financial sustainability of social protection systems will require a serious

reflection on funding, targeting and efficiency.

30. Gender equality issues: The burden of the crisis is likely to be greatest on

primary care givers, a majority of which are women, affecting their career prospects

and earnings, while the death toll is falling more strongly on men. Additionally,

there are concerns that the crisis and associated quarantine periods may create

fertile conditions for domestic violence.

31. Enhancing public sector resilience and adaptiveness: The crisis has

created new short-term demands on the public sector. But it also raises big

questions about the capacity of the public sector to withstand crisis and respond

appropriately, requiring investment in capacities.

32. Climate change and other environmental issues: How to make climate

and environment objectives an integral part of the economic recovery. Many

national policies need to be set in a multilateral and inter-sectoral context (see

below).

Multilateral themes

33. Global macro and financial stability: We may see corporate, financial

and fiscal crises despite – or because of – government efforts. The appropriateness

15

of international regulation and safety nets will resurface, just as the need to rethink

private sector bail-in and moral hazard. Greater efforts to enhance macroeconomic

resilience will be needed in many countries.

34. Health care: complement national efforts with multilateral collaboration

on pandemics prevention, including improved information sharing on potential new

threats, and health system strengthening. Given the need for enhanced buffers

globally, how should this be organised and the needed investment undertaken and

financed? We also need to better understand and act on the interdependence

between health and environmental challenges, and make the most of digitalisation

of health data and new tools such as AI.

35. Trade and the level playing field: There will be a need to rebuild trust in

global markets and avoid unnecessary/unfair trade restrictions in order to underpin

the economic recovery. Demands for more resilient value chains need to be

balanced by credible commitments for openness and cross-border supplies in crises.

36. Climate change, environmental emergencies and the need to build

resilience: Maintain momentum in the decarbonisation of the economy globally

(including carbon pricing), as well as other environmental objectives.

37. Development: Special consideration must be given to developing countries

that lack economic resilience, have lower capacity in governance and health

systems, and limited financial resources to effectively address the pandemic and its

economic and social consequences. There is a need for a comprehensive and

coordinated international response to support those countries as they face the crisis,

including through adequate financing and development cooperation.

38. International research and international organisations: The COVID-19

crisis, like the financial crisis a decade ago, has demonstrated the extent of

international interdependence, and the stark limits of sectoral approaches in

assessing crisis effects, costs and responses. In addition to sectoral research (e.g.

health), we need to understand system interdependence better, along with its policy

implications. How should countries and international organisations adapt their

cooperation?

39. OECD collaboration with non-members: The recovery within members

will be underpinned if non-members also recover speedily and strongly. The OECD

will use its relationship with key partners as well as regional and country

programmes to enhance post-crisis exchanges on best practices and advice.

Timeline and Process

40. Short policy notes are already available for a number of policy challenges

(see Annex) and there is a further need for considerable research and analysis in an

evolving, uncertain policy environment as regard our members’ medium term

challenges after the crisis.

41. It is therefore advisable to consult with Members over the coming months

to 1) prioritise amongst the issues listed above as to the OECD’s best value-added

and 2) produce deeper analytical papers and further policy discussions.

16

4. Annex: Published and forthcoming notes on horizontal and thematic

policy considerations

42. The following is a list of policy notes to be published on the OECD

dedicated platform on the COVID-19 crisis:

Published notes

Education responses to COVID-19 crisis: embracing digital learning and online

collaboration

Evaluating the initial impact of COVID containment measures on economic activity

Financial consumer protection responses to COVID-19

Flattening the COVID-19 peak: containment and mitigation policies

Health systems responses to COVID-19 in the OECD

Regional policy responses to COVID-19: When COVID-19 comes to Africa

SME policy responses to the COVID-19 crisis

Supporting people and companies to deal with the COVID-19 virus

Tax policy responses to the COVID-19 crisis

COVID-19: Tourism policy Responses

Forthcoming and potential future notes

A systemic approach to dealing with Covid-19 and future shocks

Coronavirus (COVID-19): Cities Policy Responses

Digital policy responses to the COVID-19 crisis

From containment to recovery: Environmental responses to the COVID-19 pandemic

Illustrative COVID-19 scenarios to inform policy-making

Impacts of COVID-19 on well-being and intergenerational justice (with emphasis on

children and youth, gender, and the elderly)

Leveraging technologies to support employee learning during the COVID-19 crisis

Policy considerations for developing countries and development cooperation

Policy responses to ensure resilient agro-food value chains in response to the COVID-19

crisis

Public debt management responses to COVID-19

Relevant policy measures for responsiveness and resilience of public administration and

governance during COVID-19 crisis

Science and technology policy responses to the COVID-19 crisis

Sector-specific responses to the COVID-19 crisis

Trade policy measures in response to the COVID-19 crisis

Women at the core of the fight against COVID-19