As we navigate the aftermath of the Coronavirus pandemic, many wonder how governments can effectively support economic growth in the post-pandemic era. This question is central to the preparations for the upcoming Leading Economic Growth Online executive education program, co-taught by myself and Ricardo Hausmann. Here are some personal reflections on this crucial issue:

  1. Focus on Future Growth: Despite the current crisis, it’s imperative to prioritize future economic growth. While some may question this focus amidst the immediate suffering, economic growth remains essential for improving the lives of those impacted by the crisis. As Dani Rodrik aptly stated, historical evidence underscores the pivotal role of economic growth in enhancing societal well-being. Therefore, it’s crucial to stay motivated by recognizing the interconnectedness of growth with other societal improvements.
  2. Growth as a Means, Not an End: We must view growth as a means to achieving broader societal objectives, rather than an end in itself. Growth should be pursued with the aim of fulfilling essential societal needs, such as quality employment, education, healthcare, and overall well-being. It’s imperative to align growth strategies with these desired outcomes to avoid inadvertently undermining societal objectives.
  3. Understanding Past Growth: Reflecting on the growth experienced in previous decades is essential for informing future strategies. Many regions witnessed growth during the last generation, largely driven by global economic trends rather than distinct government policies. This realization underscores the need for critical assessment and adjustment of growth strategies to ensure sustainable and impactful outcomes.
  4. Fostering Game-Changing Growth: While a significant portion of economies experienced substantial growth, termed “game-changing growth,” it’s essential to understand the factors driving this phenomenon. Countries that achieved game-changing growth underwent significant economic adaptation, fostering diversification and complexity in their economies. Policy professionals must assess whether their regions have similarly cultivated diversification and complexity to drive sustainable growth.
  5. Building Knowhow: The key to fostering sustainable growth lies in building knowhow within economies. Knowhow encompasses the collective knowledge and capabilities of a populace, crucial for driving economic diversification and resilience. Investing in initiatives that facilitate knowledge-sharing, experimentation, and innovation is paramount for building knowhow and driving long-term growth.

In conclusion, navigating the path to economic recovery and growth post-pandemic requires strategic foresight, a focus on societal objectives, and a commitment to building knowhow. By leveraging these insights, governments can effectively support economic growth and foster resilient, prosperous societies in the aftermath of the Coronavirus crisis.