Recovery, Renewal, Resilience

Digital technology proved invaluable for much of society and the economy to adapt and cope with the effects of the pandemic. However, the pace of digital transformation has exposed much of the inequalities in accessing and benefiting from the digital economy. For example, during the pandemic, most SMEs adopted basic digital technologies, however, many lack the resources and infrastructure (compared to larger firms) to employ complex digital strategies that could increase growth and productivity. An uneven distribution of digital productivity advantages may accelerate a “K-shaped recovery”, which risks leaving people and places behind. Consider:

• Increase access to digital technology e.g. improve access to broadband and digital devices to provide the technical means for productivity to develop/advance. Where connectivity is “slow, expensive or non-existent”, local governments can address the digital divide and increase access by creating or investing in publicly or privately run local networks, e.g. libraries/public buildings. For example, Toronto city council, Canada:
  • launched the ConnectTo 2021 programme which increases access to affordable, high-speed internet across the city, targeted at underserved communities in the city and;
  • in partnership with a private sector partner will establish a municipal broadband network; expand access to free public Wi-Fi and design a ‘Digital Equity Policy’ to tackle the growing digital divide and support the most vulnerable and marginalized communities in the city.
• Create means by which people can increase their digital skills – training, skills development workshops etc. in collaboration with local partners (local schools, colleges, businesses, voluntary organisations). Creating an eco-system of support to tackle digital inequalities can drive inclusive productivity growth and benefit the whole community
• Implement new strategies for inclusive productivity that consider the advantages of digital technology on the local economy, productivity and community wellbeing. New strategies should be informed by evidence, taking multiple dimensions into consideration e.g. education, business innovation, housing, and infrastructure

Ethnic minority-owned businesses play a vital role in the UK economy, the FSB reported that 'ethnic minority businesses (EMBs) contributed 25 billion pounds to the UK economy in 2018'. The entrepreneurial characteristics of diverse communities will be crucial for economic recovery. The impacts of the pandemic on EMBs is significant, as they account for a large number of businesses within the sectors closed during national lockdowns (retail, health and social care and hospitality). Consider:

• Invite ethnic minority business owners to discuss how best local government can support and facilitate entrepreneurship and growth post-COVID
• Targeted support programmes for ethnic minority-owned organisations and businesses that provide advice and support for applying for financial assistance, IT and tech support so that they are equipped with the skills and tools needed to recover and renew
• Create an 'inclusive matrix of support, including grants, wage subsidy and micro-loans for small ethnic minority-owned organisations, start-ups and new businesses'. Those businesses that may not have qualified for government financial support schemes introduced during the pandemic
• Go beyond the restricted lens of the 'Business Rate System' and broaden the understanding of how local economies function. This can be done by including 'all sectors, including homeworkers, night time economy, responses to local transport needs and the retail sector, to provide a comprehensive picture of local businesses and economic activity'. Use this to introduce support systems that promote sector diversity, good practice in sustainability, growth and cooperation in economic recovery

The live music and entertainment industry has been heavily affected by the pandemic, with the majority of live events cancelled in 2020. A targeted contact tracing programme could enable the return of live entertainments events and keep the public safe, by identifying and containing a spread of the virus quickly. The contribution of the live entertainment industry to the economy is vast, and critical for GDP, generating employment and attracting tourism. Consider:

• Contact tracing as a targeted initiative to enable the return of live entertainment
• Scope costs of such an initiative and assess affordability:
  • Consider regional collaboration to lower costs
  • Seek funding or grant support, e.g. Arts Councils
• Establish and train a dedicated events contact tracing team to:
  • Provide contact tracing services
  • Develop educational materials for events companies, their employees, and customers
  • Provide on-site environmental health consulting to assist events businesses and venues in being COVID-safe
  • Support businesses in scheduling appointments at testing facilities
• Design an incentive and enforcement scheme to encourage commitment to a contact tracing programme and the implementation of COVID-19 safety measures
• Introduce an audit and certification programme to approve live events (see TMB Issue 28 for guidance on certification programmes)

As the COVID-19 pandemic continues on, people around the world have been utilising black markets to purchase negative COVID-19 test results to enable them to travel. False negative COVID test certificates have been sold for around $300 USD. Systems which email test results can be easily bypassed by downloading and doctoring documents e.g. changing the date of the test, name and test result. Consider how to manage and mitigate proliferation of false negative test results:

• In Hawaii, only results from approved testing partners will be accepted, and they must be transmitted digitally, rather than using emails
• Utilising apps that centralize health and lab data and test/vaccination results e.g. CommonPass, trialled by United Airlines and Cathay Pacific Airways

The SDGs, represent the world's agreed economic, social, and environmental targets for 2030, and can act as a common scorecard to ensure there are objective standards for assessing progress. Localising the ambition of the SDGs to develop local economic development strategies can help integrate social and environmental standards within local economic agendas, reduce disparities between regions, generate local business opportunities and jobs, and aim to include all marginalized communities. Consider how the SDG framework can support inclusive and diversified economic growth:

• Integrate SDG targets into on-going budget reviews process, thereby improving resource allocation and performance evaluation
• Examine the link between ongoing public policies, the SDG targets and budget expenditures
• Analyse the official indicators related to budget-planning instruments
• Partner with the private sector to launch impact investment initiatives that address the SDGs, recovery and renewal from COVID-19 and sustainable economic renewal

In the USA, Black Communities are amongst some of the hardest finically hit communities as a result of the economic fallout from COVID-19. Recovery to date has shown to neglect women, Latino and Black Americans. Similar patterns are seen globally, with marginalised and already vulnerable groups being hit the hardest economically. Like many countries, this is a result of pervasive existing inequalities in access to income, assets, health, education, formal employment, equal opportunity, social protection, internet and public services. Consider:

• Explicitly acknowledging the heightened economic vulnerabilities of specific socioeconomic groups - and address these with targeted measures
• How to encourage broad public participation and collective action in government planning and response to effectively address existing inequalities and the needs of vulnerable populations as well as minimise elite capture and urban bias
• How policies should account for constraints faced by specific marginalized groups in terms of economic recovery such as job precarity, lack of education, low wages
• That economic recovery programmes that do not address these inequalities run the risk of reinforcing and deepening inequalities into the future which can burden economies and health systems
• Assessing funding proposals for their impact on different societal groups

Assessing projected job losses and economic vulnerability as a result of COVID-19 can be supported by using digital tools informed by official national statistics. Tools such as the Kentucky COVID-19 Economic Impact Dashboard can provide information on (un)employment by tracking industries that have experienced the greatest job losses nationally. Dashboards like these point users to a single, accessible, authoritative source for information. This helps organisations to maintain situational awareness and communicate critical information. For the economy, consider using digital tools like dashboards to:

• Evaluate the needs of local economies more closely and to develop policy responses tailored to the unique needs of each locality
• Evidence the need to support and fund aspects of economic recovery that are monitored by the dashboard
• Share data with other relevant stakeholders that also see the impacts of economic vulnerability e.g. health and education sectors
• Use the data for strategic planning and staffing purposes to anticipate and meet demand for services in different regions of the state
• Provide the public and businesses with data on economic vulnerability, alongside signposting them to other relevant information e.g. transmission rates in their area, COVID-19 testing facilities

The city of El Paso has mapped local economic opportunities in their area to develop economic strategies that rely less on precarious work such as those in the service industries. The city has five good Science, Technology, Engineering, and Mathematics (STEM) based Universities, and aim to leverage opportunities and relationships to develop a local economic sector based on life science and technology industries. El Paso is developing programmes to upskill the local workforce (many of whom are financially unstable and in service industries) towards STEM. The strategy recognizes the profile of the current workforce and is aiming to develop training programmes in jobs such as laser welding, which is technical but does not require high levels of education. This supports long-term economic development and is linked to community welfare and financial stability.

This lesson was contributed by El Paso City Officials in the USA during project data collection.

In Hawai'i, there are plans to enhance and stimulate the economy in an equitable manner to:

• Shift the reliance on a precarious tourist industry (which offers low wages to residents, especially women) and address the social and ecological costs of tourism
• Establish an adjustment fund to support displaced workers though retraining, enabling professional mobility, and supporting social entrepreneurship
• Establish gender and racial equity programs to enhance women's access to investment capital. This should extend beyond low-wage sectors, the commercial sex industry, and male dominated industries
• Invest in subsistence living
• Encourage traditional land- and sea-based practices to maximise the ecological and food system

By considering what should open first, what should open last and the PPE requirements of business recovery. Commuting patterns should be considered.

Reference: Chief Resilience Officer, USA and the link below