To ensure that trade in essential goods continues in times of crisis, countries could set up a consultative body. Such a ‘quick response board’ can help governments to align their policies and ensure timely cooperation in the areas of logistics, procurement, planning and production. This is stated by the economic think tank Organisation for Economic Development and cooperation (OECD).
The OECD, commissioned by the G7, looked at ways to make the world economy more resilient to major crises. Cooperation between countries is necessary, according to the think tank.
According to the OECD study, the effects of the financial crisis and now the coronavirus crisis remain visible in both the economy and society for a long time to come. The vulnerabilities discovered during these two crises must be learned. Because there are still big threats coming at us, says the think tank. The OECD refers, among other things, to the climate crisis and cybersecurity.
For example, from the coronavirus crisis, we can learn that the supply chain for essential goods needs to be maintained, even in difficult times. During the coronavirus crisis, things like protective devices for medical personnel and vaccines went wrong.
Full reliance on production in their own country is not a good strategy, says the think tank. This eliminates risk spreading by distributing production between different countries and regions. It is also inefficient and therefore too expensive, especially for poorer countries.