During the coronavirus crisis, countries resorted to more authoritarian measures such as control and containment. "This makes sense now, and in the long run, we need to go back to the market system and allow people and businesses the freedom to make decisions and dispose of property," points out Anze Burger of FDV. He advocates a return to liberal foundations and cooperation.
The circumstances of the crisis are so exceptional that countries have been forced to lean more towards authoritarianism, an associate professor of international economics at the Burger School of Social Sciences in Ljubljana pointed out today at Coffee to Connect in an online event of the American Chamber of Commerce in Slovenia Amcham Slovenia. We will have to be careful about technology that may prove useful, but at the same time "move society closer to authoritarianism," he said.
"I hope this crisis will teach us that shocks that affect the entire world can only be resolved through the cooperation of all countries," Burgel said. He noted that solo salvation of an individual country was quickly recovered in the form of retaliation.
Burger opposes states dictating the direction of the economy during a post-crisis recovery. "The task of entrepreneurs is to discover opportunities in the market, this will never be replaced by the state and its officials. Years ago, for example, no one thought we would be good at ultralight aircraft. Slovenia is small and one or two companies are enough to completely reverse the comparative advantages and grow a niche that we are good at in the global market, ”he said.
He advocated the creation of a favorable entrepreneurial environment, for example by reducing existing barriers in the EU common market and developing financial markets in terms of increasing the availability of funds to finance risky investments. Specific policy decisions, however, must be made by businesses.
Burger also recalled that despite all the problems with the purchase of protective equipment during the epidemic, there was a pronounced criticism of globalization, although it has brought enormous benefits to Slovenia in recent years - both for business owners and workers and consumers. “A small and open Slovenian economy cannot just have entire industries and clusters. We can only have companies that are specialists in certain industries. niches, ”he pointed out.
In Slovenia today, the importance of exports to the economy is much greater than in the last crisis 10 years ago, Burger recalled. That is why, with the global trade halt and the services sector severely affected, Slovenia will suffer a greater GDP decline in this crisis than in 2008. "However, I hope that global activity and trade are picked up as soon as possible and that the momentum of the economy in our larger partners, such as Austria and Germany, quickly pulled out of the crisis also our export companies, "he said.