Importance and Implications of Influential, Powerful, and Remarkable Economic Policy Mix: Pre-Pandemic and Post-Pandemic Challenges in Building Inclusive Global Knowledge Societies

Abstract

Key Terms in this Chapter

Optimal Policy Mix in the European Union (EU): Over the years, there were several crisis situation and pressing cases in which the fiscal and the monetary policymakers had to unite their forces and had to work together, in order to foster an optimal policy mix at a global level or at a less larger scale, such as in the case of the European Union (EU) countries; very good examples of such situations are represented by the Great Recession (which was a response to the 2007 economic crisis started in the United States), and the COVID-19 crisis (which was generated by the COVID-19 pandemic, which started in the early 2020 and which threatened the economies of all the nations around the world, affecting at an incalculable level our society and the well-being of individuals); an optimal policy mix in the European Union (EU) as well as almost anywhere else in the world could focus on certain measures, such as, for example: (a) cutting the interest rates, and focusing to keep these interests rates at or near zero as long at proved to be necessary, in order to stabilize the marketplace; (b) purchasing debt securities in high amounts, in order to stabilize the marketplace; (c) offering packages with direct assistance to those that have been severely affected by the crisis (for instance, the case of the COVID-19 pandemic and the COVID-19 crisis, and the groups that have been hurt financially by the COVID-19 pandemic and the COVID-19 crisis, namely the parents having school-age children, the people which were unemployed at that time, the small and medium enterprises which were affected by the periodic shutdowns).

Pre-Pandemic and Post-Pandemic Challenges and Opportunities: There are numerous challenges and opportunities that might be related to the pre-pandemic and the post-pandemic events and situations, especially when targeting the advancement of the society’s development goals in the international context, but the challenges and the opportunities represented by the social inclusion are the ones that need to be mentioned with high priority, since the social inclusion opportunities and challenges have the power to confer success, encourage interdisciplinary, lead to optimum solutions in the process of problem solving analysis cases, target reducing extreme poverty around the world, tackle social cohesion by understanding and by reducing the gaps that exist in the development process of regions and countries at a wide level.

Opportunities in Building Inclusive Global Knowledge Societies: The United Nations Educational, Scientific and Cultural Organization (UNESCO) stated in the document on “Inclusive Knowledge Societies for Sustainable Development” published in March 2012 the fact that there are countless opportunities that may be encountered in the complex process of building inclusive global knowledge societies, since knowledge is regarded by specialist as the vital asset that humanity possesses (United Nations Educational, Scientific and Cultural Organization (UNESCO), 2012); in continuation, human experiences as well as human activities depend on the added value that knowledge managed to provide and that ought to be analyzed together with the unlimited benefits offered by the new communication and information tools (ICTs) that are believed to promote and to accelerate individuals’ “freedom of expression”, good quality education for all, enhancing society’s “respect for cultural and linguistic diversity”, and “universal access to information and knowledge” (United Nations Educational, Scientific and Cultural Organization (UNESCO), 2012).

Economic Policy Mix: The COVID-19 pandemic and the COVID-19 crisis have profoundly and irreversibly impacted our society, which led to the need to create a stronger and a more sustainable policy mix, capable to address in a better and in a more coherent manner the fiscal policy and the monetary policy – which are in a powerful combination and which are in a complementary relationship; the countries due to support the changes, challenges and opportunities due to be derived from the implementation of a novel economic policy mix are expected to manage the economic, financial, social, demographical, and political situation much better, thus responding successfully to the economic, the financial, and the social crisis.

Social and Solidarity Economy: This places human beings as the first and last consideration in economic activities and is an alternative approach to the market economy. It relates to organizations, cooperatives, associations or companies that aim to produce goods, services and knowledge for economic purposes while simultaneously focusing on social implications and fostering solidarity.

Challenges in Building Inclusive Global Knowledge Societies: As acknowledged in the United Nations Educational, Scientific and Cultural Organization (UNESCO)’s Information for All Program (IFAP), in the age of COVID-19 there are numerous challenges in building inclusive knowledge societies, especially as a response to the COVID-19 crisis which focuses on new priorities and new strategies in terms of multi-stakeholders digital cooperation, unleashing the “enormous potential” of the information and communication technologies (ICT) use “for positive change”, facilitating access to vital information capable to “save lives, build trust and help develop sustainable policies, strengthen access to health, education and justice, contributing towards reduced inequalities” (United Nations Educational, Scientific and Cultural Organization (UNESCO), 2022); what is more, providing access to information and to knowledge represents the key to avoid disinformation, as an “an effective response to the COVID-19 crisis”, although, in terms of challenges in building inclusive global knowledge societies, international cooperation might be regarded as an unlimited source capable of harnessing “opportunities offered by technology to create equitable knowledge societies” as well as sharing valuable experiences in terms of lessons learned by promoting digital inclusion and a sound “collaborative environment” for all individuals (United Nations Educational, Scientific and Cultural Organization (UNESCO), 2022).

Economic Stimulus: This concept is widely used to refer to those cases in which the governments or the governmental agencies are making attempts to kick start economic growth and financial growth during difficult economic periods; there are numerous examples that might be offered when addressing and when referring to the case of economic stimulus, since these are very challenging situations for any economy and for any country: (a) cutting the interest rates, and focusing to keep these interests rates at or near zero as long at proved to be necessary, in order to stabilize the marketplace; (b) purchasing debt securities in high amounts, in order to stabilize the marketplace; (c) offering packages with direct assistance to those that have been severely affected by the crisis (for instance, the case of the COVID-19 pandemic and the COVID-19 crisis, and the groups that have been hurt financially by the COVID-19 pandemic and the COVID-19 crisis, namely the parents having school-age children, the people which were unemployed at that time, the small and medium enterprises which were affected by the periodic shutdowns).

Economic Globalization: This is a phenomenon in expansion that causes profound changes on the world stage. It revolves around trade, the flow of investment, financial capital, division of labor and specialization. The concept is not limited only to economic variables since its effects extend to individuals, society to the state. Developing countries are experiencing stagnation in the face of their inability to cope with globalization, which is compounded by poor management of their financial markets, leading to an increase in the income inequality gap. Economic globalization brings with it the mobilization of goods and capital, reduces distance between borders and energizes international trade with some alterations to sovereignty.

Anthropocene: Over the last several centuries much of humanity has had such a negative impact on the environment, as well as other unpredictable consequences, that some scientists have described this period of time as a new geological age: the era of human impact on the Earth, or Anthropocene.

Balancing the Economic Policy Mix for Innovation and for Sustainable Economic Growth: Due to the influence of the COVID-19 pandemic and the COVID-19 crisis on our society, it is believed that balancing the economic policy mix in order to generate innovation and to ensure sustainable economic growth represents a viable and a highly expected response to the economic, the financial, and the social crisis; the economic policy mix takes into account several pivotal aspects, such as: (a) the combination of certain measures belonging to the fiscal and the monetary policymakers, which are due to strengthen or to stabilize – depending on the case, the countries’ economies, in order to promote a balanced economic policy mix for innovation and for sustainable economic growth; (b) the capacity to create a balance and the need to harmonize the monetary policies which are adopted and promoted by the nations’ central banks and the fiscal policies which are managed by the federal governments or by different forms of unions (such as, for example, the European Union (EU)); (c) the capacity to ensure the money supply at a regional or at a national level, which falls in the area of the monetary policies, while having in mind the capacity to either raise or spend money, which falls in the area of the fiscal policy; (d) the capacity and the strong need to ensure economic growth, in the context in which economic growth can be cooled and/or stimulated – depending on the case and the status of the economy, based on the decisions, the objectives, the present and the future perspectives, and the economic and the financial interest belonging to the governments and the nations’ central banks.