Valdai Club

The gap between different income groups, genders, and levels of human capital accumulation has grown further, while economic inequality and in terms of non-traditional security threats has dramatically worsened. This expansion of inequality will be the largest obstacle to sustainable development, writes Kim Heungchong, President of the Korea Institute for International Economic Policy (KIEP). The article is published as part of the Valdai Club’s Think Tank project, continuing the collaboration between Valdai and KIEP.

The spread of COVID-19 has forced the majority of nations to limit travel through their borders, causing a severe crisis in the global economy and trade. According to an IMF forecast, the shock in labor markets and drop in demand will cause the world economy to shrink by 4.4% this year, which is the worst growth rate since World War II. The WTO predicts that global trade will shrink by 13–32% from last year.