00:02 Good morning and welcome,
00:03 everyone.
00:04 Um,
00:05 uh,
00:05 I'd like to welcome you to,
00:07 um,
00:07 the current installment of our COVID-19 e-seminar series on the,
00:12 uh,
00:12 politics of pandemics.
00:14 Um,
00:15 since it's 9 o'clock,
00:16 I figured that we should get started without further ado.
00:19 And also because,
00:21 um,
00:22 of how,
00:23 um,
00:24 busy everyone is these days with all of the things that
00:27 we're doing in our own ways to try to support and,
00:30 uh,
00:31 Uh,
00:31 and,
00:31 and respond to the COVID-19 emergency.
00:35 Um,
00:36 so the topic of our,
00:37 uh,
00:37 our e-seminar today is the politics of pandemics.
00:41 It's a great pleasure to,
00:43 um,
00:44 introduce,
00:44 uh,
00:44 the two speakers that we have lined up.
00:46 Um,
00:47 our,
00:48 our first speaker is,
00:48 uh,
00:49 Felipe Campante from,
00:50 uh,
00:51 Johns Hopkins,
00:52 uh,
00:52 SIS.
00:53 Um,
00:54 he's the Bloomberg Distinguished Associate Professor there,
00:57 and he has worked and published extensively in political economy,
01:01 development,
01:01 economics,
01:02 and regional and urban issues.
01:05 Um,
01:05 and,
01:06 uh,
01:06 he'll be,
01:07 uh,
01:07 uh,
01:07 sharing with us,
01:08 um,
01:09 insights from his research on how the Ebola epidemic,
01:13 um,
01:14 a couple of years ago affected,
01:16 um,
01:17 affected and influenced politics.
01:19 Um,
01:20 our second speaker is our very own Stuti Kamani.
01:25 Uh,
01:25 who is a senior economist in the Development Research Group in the World Bank.
01:29 Um,
01:30 she is,
01:30 uh,
01:31 uh,
01:31 joined in the early 2000s and has been,
01:33 uh,
01:34 working in DCRG
01:36 on,
01:36 um,
01:38 On a variety of topics relating to the political economy of development.
01:42 And,
01:42 you know,
01:43 most notably,
01:44 a,
01:45 uh,
01:46 was the lead author of a recent policy
01:48 research report on making politics work for development.
01:52 Um,
01:52 and then just to,
01:53 uh,
01:54 not have an interruption in the flow,
01:55 I'll also just jump ahead and welcome our discussant as well.
01:59 Our discussant is Antonio Spilibergo.
02:02 He's the deputy director in the Research Department at the IMF,
02:07 um,
02:08 And,
02:08 uh,
02:09 Antonio has a long and distinguished career
02:11 both in research and in operations in the
02:13 fund and has uh an incredibly uh prolific and diverse set of research uh research
02:20 interests,
02:21 um,
02:22 political economy being one of them.
02:24 So it's a pleasure to have,
02:25 um,
02:26 uh,
02:26 such a great lineup for today's,
02:28 uh,
02:28 for today's seminar.
02:30 I believe we're gonna start with um uh Felipe,
02:34 uh,
02:34 for about 20 minutes,
02:36 uh,
02:36 followed by Stuy for about 20 minutes.
02:38 Um,
02:39 and then we'll go straight to Antonio for discussion,
02:42 uh,
02:42 10 or 15 minutes,
02:43 and then we'll open up,
02:45 uh,
02:45 for,
02:46 uh,
02:46 for comments and,
02:47 and questions from,
02:48 uh,
02:48 all of you wherever you're joining us.
02:51 Um,
02:51 what I,
02:52 um,
02:53 uh,
02:53 what I'll do,
02:54 uh,
02:54 Felipe and Stutti is I'll give you both kind of a five-minute warning,
02:58 um,
02:59 just to,
03:00 to help,
03:00 uh,
03:00 help you to stay on top of the time.
03:02 Uh,
03:03 so without further ado,
03:04 um,
03:04 over to you,
03:05 Felipe.
03:06 Uh,
03:07 thank you very much,
03:08 uh,
03:08 Art.
03:08 I hope you can all hear me.
03:10 Uh,
03:11 let me
03:12 share my,
03:13 uh,
03:13 slides,
03:14 uh.
03:16 OK,
03:16 I think you,
03:17 you can all see that,
03:17 right?
03:19 Uh,
03:19 so,
03:20 uh,
03:20 this is a great pleasure to be here.
03:22 Uh,
03:22 uh,
03:22 thanks a lot for,
03:23 uh,
03:24 for the opportunity.
03:25 And this is a project that I've,
03:27 uh,
03:28 Uh,
03:28 I had been,
03:29 uh,
03:29 working on with Emilio del Petris Chauvin,
03:31 uh,
03:31 and Ruben Durante,
03:33 and,
03:33 and,
03:34 you know,
03:34 the,
03:34 the,
03:34 the,
03:34 the COVID.
03:36 Uh,
03:36 the emergence of the COVID,
03:37 uh,
03:38 uh,
03:38 crisis or just,
03:40 you know,
03:40 made this,
03:41 uh,
03:41 uh,
03:41 uh,
03:41 more urgent and,
03:42 and,
03:43 and it's great to kind of be able to,
03:45 to contribute to,
03:45 uh,
03:46 to the debate here.
03:47 So,
03:48 uh,
03:48 you know,
03:49 the way I like to think about this is if,
03:50 if you,
03:51 if you think about the political impact of a pandemic,
03:54 um,
03:55 and COVID-19 in particular,
03:57 which is an enormous
03:59 Example,
03:59 right?
03:59 It's a huge shock.
04:01 Uh,
04:02 first of all,
04:02 it's,
04:02 it's,
04:03 it's such,
04:03 it's so huge that it's kind of hard to think that it won't have,
04:06 uh,
04:06 uh,
04:07 political electoral effects
04:09 in this country,
04:10 in the US and,
04:10 and,
04:11 uh,
04:11 uh,
04:11 um,
04:12 elsewhere as well.
04:13 And I,
04:13 and I think there are 3 different dimensions that we can,
04:16 uh,
04:16 explore here,
04:17 two of which I think we understand a little bit better.
04:19 So on the one hand,
04:20 There's the economic dimension,
04:21 uh,
04:22 as we all know,
04:23 it's,
04:23 it's,
04:24 you know,
04:25 we're,
04:25 we're right now going through a major
04:27 economic downturn.
04:28 There's gonna be a,
04:29 a,
04:29 a tremendous fallout from this.
04:31 And we understand,
04:32 uh,
04:32 that economic shocks have,
04:35 uh,
04:35 uh,
04:35 uh,
04:35 uh,
04:36 electoral impacts.
04:37 In the US in particular,
04:38 it's,
04:38 it's,
04:38 it's a widely studied
04:40 topic,
04:40 but,
04:40 but even more broadly.
04:42 Now,
04:42 there's a second dimension which I would call the policy dimension,
04:45 which is
04:46 COVID is,
04:47 uh
04:47 requiring an enormous policy response,
04:51 and it's natural
04:52 that incumbents
04:54 would be judged
04:56 by their response to the crisis.
04:57 People will update their views
04:59 on incumbents based on their response to the crisis.
05:03 This may actually have one dimension,
05:05 which is so,
05:05 so-called rally around the flag dimension,
05:07 right?
05:07 In a moment of crisis,
05:08 people have a tendency to try and,
05:10 and,
05:10 and uh uh uh uh you know,
05:11 rally around the,
05:12 the,
05:13 the incumbents,
05:13 so to speak.
05:14 That may be a part of this.
05:15 But,
05:15 but there's this big
05:17 policy component and this is obviously still unfolding.
05:19 Because the policy response is,
05:21 is unfolding.
05:22 But there's a third element which I would argue is,
05:24 is,
05:25 is not as well understood as the other two,
05:27 which is
05:27 sort of the psychological impact,
05:29 right?
05:29 So there's,
05:30 there's a threat out there,
05:31 uh,
05:31 uh,
05:31 a multifaceted threat,
05:33 you know,
05:33 starting with the,
05:34 uh,
05:34 uh,
05:34 just the virus itself.
05:36 And that can
05:37 in itself affect the behavior of voters,
05:39 and this is what we
05:40 are going to look at specifically in this research.
05:44 So if you think about the role of emotions in politics and
05:47 in particular the role of fear as a particularly powerful emotion.
05:52 It's,
05:52 it's,
05:53 it's quite,
05:53 uh,
05:53 uh,
05:54 uh,
05:54 uh,
05:55 uh,
05:55 you know,
05:55 it makes a lot of sense.
05:56 People
05:56 talk a lot about how,
05:58 uh,
05:58 these are powerful tools for,
05:59 for,
05:59 for influencing voting behavior,
06:02 and politicians,
06:04 you know,
06:04 uh,
06:04 uh,
06:04 anecdotally,
06:05 it's,
06:05 it's,
06:05 it's quite clear that,
06:06 that they use fear
06:08 to mobilize voters,
06:09 uh,
06:09 often against sort of external threats,
06:11 be it,
06:11 you know,
06:12 immigrants or terrorism or,
06:13 or,
06:13 or whatever the case may be.
06:16 And there is a,
06:17 a,
06:17 a substantial body of work,
06:19 uh,
06:19 uh,
06:20 mostly kind of coming from uh lab experiments about the impact that just
06:25 priming
06:27 sentiments of fear of anxiety may have,
06:29 uh,
06:30 but our real-world evidence is,
06:31 is,
06:32 is a bit more complicated because,
06:34 uh,
06:34 from an empirical perspective,
06:35 it's kind of hard to disentangle the impact of fear
06:39 from other factors precisely because whenever there's a,
06:41 a,
06:41 a,
06:41 a shock that triggers that in,
06:43 in practice.
06:44 It often
06:46 requires a policy response.
06:47 So all of those uh uh uh different elements
06:50 that I've just alluded to are present as well.
06:52 So disentangling that
06:54 is,
06:54 is complicated.
06:55 So what we do in this paper is to look at the impact of the Ebola outbreak
07:00 in 2014,
07:02 which as I'm gonna uh uh uh go over happened uh right before or,
07:05 or reached the US uh right before uh uh uh the US midterm elections of that year.
07:11 And this gives us a very unique context to look at this uh uh um fear aspect because
07:16 the perceived threat was quite high.
07:19 It,
07:19 it had a,
07:19 a,
07:20 a very stark impact.
07:23 course,
07:24 but the actual risks or the,
07:25 the,
07:26 the,
07:26 the effect it had on sort of the public health environment
07:28 was quite low.
07:29 So unlike what we're having now,
07:31 it,
07:31 it,
07:31 it,
07:32 we can sort of isolate
07:33 the fear,
07:34 uh,
07:34 uh a shock
07:35 from these other dimensions for the most part,
07:38 which,
07:38 which typically.
07:39 Complicate
07:40 the,
07:40 the,
07:40 the,
07:41 uh,
07:42 the inference.
07:42 So just to give you some context,
07:44 you may remember
07:45 in 2014,
07:46 there was this uh a very important Ebola outbreak centered in West Africa.
07:50 So we can see here,
07:51 this is uh Guinea,
07:52 Sierra Leone,
07:53 and Liberia,
07:54 and
07:55 it was a very uh uh uh important public health shock in these countries.
07:59 So we see like thousands of cases,
08:01 as you all know,
08:02 uh,
08:02 uh,
08:02 it's a disease with very high mortality,
08:05 no effective treatment.
08:07 And if we look at
08:09 sort of how it spread across different places,
08:12 massive shock in Sierra Leone,
08:14 Liberia,
08:15 Guinea,
08:16 not so much elsewhere,
08:17 right?
08:17 And in particular if you look at the United States,
08:20 there were a total of 4 cases,
08:24 1 death.
08:26 Among these cases.
08:27 And just to give you a comparison,
08:28 if you look at the 2009 influenza,
08:30 not,
08:30 not even to mention what we're going through right now,
08:33 it's just a completely different order of magnitude,
08:35 right?
08:36 So this,
08:36 this was not a major public health shock
08:38 in the US.
08:40 However,
08:40 it was a major,
08:43 you know,
08:43 media
08:44 episode in the US,
08:45 right?
08:45 So these are just a
08:46 couple of uh uh uh screenshots and,
08:48 and,
08:49 and pictures from back in the day.
08:50 So,
08:51 There was,
08:52 you know,
08:52 a lot of panic surrounding Ebola,
08:55 as I suppose many of you might,
08:58 might remember.
08:59 If you just look at the numbers here on the left-hand side,
09:02 we see uh the,
09:03 the network news
09:05 and the right-hand side,
09:06 the cable news.
09:07 So there was this,
09:08 uh
09:08 uh uh,
09:09 you know,
09:10 pretty a sharp peak of news and discussion about Ebola,
09:14 and the vertical red line there is election,
09:17 is election week,
09:18 right?
09:18 So the midterm elections.
09:19 So this was happening
09:21 right before
09:22 the election or the month before
09:24 the election.
09:25 So,
09:25 you know,
09:26 it,
09:26 it,
09:26 it,
09:26 it happened.
09:27 In the moment that sort of maximize the,
09:30 the electoral,
09:31 the potential electoral impact
09:33 at that point in time.
09:34 So what we're going to do is use this
09:35 to ask a number of questions and try to answer them.
09:38 So,
09:38 first of all,
09:39 did that panic influence voters?
09:42 If it did,
09:43 in which direction?
09:44 So in particular,
09:45 which party
09:46 benefited from that effect?
09:49 And then we wanna ask uh uh how,
09:51 right?
09:52 So what were the mechanisms involved and,
09:54 and in particular,
09:55 uh were there uh sort of uh uh or was there a strategic uh uh uh um
10:01 Behavior by politicians kind of using that.
10:04 If so,
10:04 how and,
10:05 and,
10:05 and,
10:05 and how effective,
10:06 right?
10:07 And obviously,
10:08 like we need first to,
10:09 to kind of try and figure out sort of the causal uh uh impact here.
10:12 How do we know that Ebola caused all of this?
10:15 And then how do,
10:15 you know,
10:16 for,
10:16 for that we need to figure out like how do we measure
10:19 the,
10:19 the extent of the Ebola panic,
10:21 if you will.
10:21 And,
10:22 and,
10:22 and this is what we do here.
10:23 So,
10:24 for uh uh uh.
10:25 You know,
10:25 our,
10:26 our uh causal identification,
10:28 we're going to exploit the timing and the location
10:30 of Ebola cases in the US.
10:33 So,
10:34 first case,
10:34 late September,
10:36 was one individual,
10:37 Liberian national who was visiting the US and was diagnosed
10:41 with Ebola,
10:42 and he was in Dallas,
10:43 Texas.
10:44 Uh,
10:44 soon afterwards,
10:45 uh,
10:46 one of the nurses
10:47 that,
10:47 so two nurses actually tested positive,
10:50 uh,
10:50 nurses who had assisted,
10:52 uh,
10:52 uh,
10:52 this patient tested positive,
10:53 and this nurse,
10:54 in particular,
10:55 she had traveled
10:56 to Akron,
10:57 Ohio
10:58 in between,
10:58 uh,
10:59 uh,
10:59 uh,
11:00 you know,
11:00 Being infected and uh being diagnosed.
11:03 And finally,
11:04 there was uh uh uh a doctor who had been working
11:06 in Guinea sort of trying to help uh in the crisis
11:09 and was diagnosed once he,
11:10 he was back in New York City.
11:12 So these were the cases.
11:13 So we have this sort of geographical uh
11:15 uh uh uh um
11:17 arguably sort of uh uh
11:19 You know,
11:19 idiosyncratic,
11:20 uh,
11:21 I'm gonna,
11:21 uh,
11:21 uh,
11:21 talk a little bit more about that,
11:23 uh,
11:23 exposure to,
11:24 uh,
11:24 the cases across the US.
11:26 I'm gonna try to exploit that
11:28 and the timing
11:29 to,
11:30 uh,
11:30 uh,
11:30 uh,
11:30 get at the,
11:31 the,
11:31 the causal impact of the Ebola concerns.
11:34 So just to give you a sense of then how,
11:36 how we can measure,
11:36 uh,
11:37 Ebola concerns.
11:38 So 111 thing that we do is to look at Google searches for the term Ebola.
11:45 And as you can see,
11:47 the prevalence of Google searches is,
11:49 is very much kind of correlated with
11:52 the geographical uh uh uh um
11:54 Exposure to these cases,
11:56 right?
11:56 So,
11:57 you know,
11:57 large dark blue uh uh uh areas around Dallas,
12:01 uh,
12:02 Cleveland,
12:02 Akron,
12:03 and,
12:04 uh,
12:04 New York City.
12:05 And uh so this is kind of indicating that there
12:08 is this uh uh uh uh um effect of proximity
12:11 to Ebola cases and the degree of concern
12:13 with Ebola cases.
12:14 And we can do that for tweets as well.
12:16 So tweets,
12:17 uh,
12:17 uh,
12:17 with the word Ebola or hashtag Ebola,
12:19 you see kind of a similar,
12:20 uh,
12:20 uh,
12:21 a similar picture here.
12:22 Now,
12:23 if we look at the timing,
12:25 we see that,
12:26 you know,
12:26 there was this geographic pattern uh
12:28 uh associated with the specific timing as well.
12:31 So the green here are searches that are uh uh um uh in Texas,
12:35 and we see that they peak once there's the first case in Dallas.
12:39 Then the
12:40 You know,
12:40 the first case travels to Cleveland,
12:42 then there's a peak in the red line,
12:44 which is the Ohio searches and Dallas peaks back as well.
12:47 And then there's a blue peak here in New York City right after the,
12:50 the,
12:50 the first case in New York.
12:51 So as people get exposed,
12:53 the concern rise uh uh uh uh rises,
12:56 and we can kind of pick that up using those uh measures of uh online activity,
13:01 OK?
13:02 And here is uh the,
13:03 the,
13:04 the figure for tweets as well.
13:05 So,
13:06 you know,
13:06 same,
13:06 same idea.
13:07 Now,
13:07 uh,
13:08 uh,
13:08 so what we're gonna do then is to use the distance
13:11 to the nearest Ebola case
13:13 as a predict a predictor of Ebola concerns,
13:16 right?
13:16 So as an instrument
13:17 for Ebola concerns,
13:19 and we show that uh conditional and sort of uh previous uh uh um
13:23 electoral outcomes.
13:25 So it's,
13:25 it's,
13:25 it's basically uncorrelated with previous.
13:27 Electoral outcomes.
13:28 It's uncorrelated with Ebola concerns before the,
13:30 the,
13:31 the,
13:31 the cases emerged.
13:32 So it's not as if these areas
13:33 somehow would be more prone to worry
13:36 about Ebola or these areas or proximity kind of
13:40 picks up something about like you're more likely to vote Democrat or Republican.
13:44 Uh,
13:44 we show that this is not the case for,
13:45 for previous outcomes.
13:47 And the first key finding
13:49 is that
13:50 greater Ebola concerns led to lower,
13:53 to a lower Democratic vote share
13:55 in the midterm elections
13:57 at the House,
13:58 Senate,
13:58 and gubernatorial levels,
14:00 right?
14:00 So there are the Democrats were,
14:02 were harmed
14:04 by the Ebola,
14:05 by.
14:06 Of the prevalence of Ebola concerns.
14:08 And just to give you a,
14:08 a,
14:09 a quantitative idea of the,
14:10 of the size of the effect,
14:12 if you take a one standard deviation increase
14:14 in the concerns as measured,
14:16 you know,
14:16 both by uh searches and by tweets,
14:19 this led to a 4.3% point drop
14:22 in the Democratic vote share
14:24 and
14:25 You know,
14:26 this would have swung 15
14:28 House races.
14:29 So this is for House elections.
14:30 The numbers are similar for Senate and,
14:32 and,
14:32 and gubernatorial elections.
14:34 So this would have swung
14:36 uh 15 races that were won by the Republicans.
14:40 Which,
14:40 uh,
14:41 uh,
14:41 uh,
14:41 basically would have wiped out all the gains
14:44 that the GOP had between 2010 and 2014,
14:47 which were like,
14:47 so they increased their majority by 13 seats.
14:50 So it,
14:50 it,
14:51 it's a,
14:51 it's a sizable impact
14:53 uh that we're talking about here.
14:54 So that's the first,
14:55 the first,
14:56 uh uh uh key result.
14:58 Now,
14:58 you may wonder,
14:59 uh,
15:00 maybe this was associated to an effect where voters
15:03 were,
15:03 uh,
15:04 um.
15:05 Disappointed with the incumbent's reaction or,
15:08 or just kind of
15:09 some uh uh uh immediate uh
15:11 uh response that the panic kind of gets projected
15:14 onto the incumbents and,
15:16 you know,
15:16 the first thing to note
15:18 is
15:18 we see no effect on,
15:19 on Republican incumbents,
15:21 so that's uh the first thing here.
15:23 But you may wonder,
15:24 uh,
15:25 perhaps it was about Obama being the incumbent that people had in mind,
15:30 right?
15:30 And if you think uh and,
15:31 and go back to the,
15:32 to,
15:32 to,
15:33 to,
15:33 to that time.
15:34 There was this perception,
15:35 right?
15:36 So these are headlines from,
15:37 from,
15:37 from uh uh that month.
15:39 So is Ebola,
15:40 Obama's Katrina moment,
15:42 President Obama's Ebola problem,
15:44 and you even had some uh celebrities at the time
15:46 who were kind of uh uh uh criticizing President Obama
15:50 about the response to the Ebola crisis.
15:53 So that was uh uh uh uh uh a thing.
15:55 Back in the day,
15:56 well,
15:57 we actually
15:58 find
15:59 using
15:59 the daily variation in Gallup ratings
16:03 that asks
16:04 about uh uh approval or disapproval over the president,
16:08 and there's basically a precisely estimated zero effect
16:11 on Obama's approval rating.
16:13 OK,
16:13 so there was like,
16:14 there was no
16:15 effect.
16:17 On Obama's approval rating.
16:19 And
16:21 this,
16:22 I guess,
16:22 uh,
16:22 uh,
16:22 uh,
16:22 uh,
16:23 uh,
16:23 kind of
16:24 provides some evidence that there isn't sort of this automatic
16:27 impact uh uh of sort of the,
16:29 the,
16:29 that uh um
16:31 fear related to the,
16:32 to the epidemic
16:34 projected on the incumbent,
16:35 and I think that's something that uh uh uh is important to keep in mind uh for the,
16:39 for the current context.
16:40 But then,
16:40 like what was driving this effect then?
16:43 Uh,
16:44 Perhaps politicians were kind of trying to,
16:46 to,
16:47 to make use
16:48 of that,
16:48 uh of that episode.
16:49 And this is just one example,
16:51 uh we have,
16:52 you know,
16:52 others in the paper,
16:53 it's just very easy to find.
16:54 So this is Senator Rand Paul,
16:56 uh,
16:56 at the time saying,
16:57 you know,
16:58 Uh,
16:58 Ebola,
16:59 this major threat,
17:00 and,
17:00 and,
17:00 and crucially kind of making this association with
17:04 the border and,
17:04 and immigration and,
17:06 and tying these,
17:07 uh,
17:07 topics together,
17:08 right?
17:08 So the idea that you have
17:10 this foreign disease that can come
17:12 and,
17:13 and kind of,
17:14 uh,
17:15 you know,
17:15 building this association here,
17:17 I think is also something that's quite important.
17:20 Uh,
17:20 uh,
17:20 and I'm gonna get back to this.
17:21 So,
17:21 so
17:22 there was,
17:23 uh,
17:23 there's a perception that this was exploited at the time.
17:27 And
17:28 we can see this uh in the data,
17:29 right?
17:29 So this is one example.
17:31 So members of Congress,
17:32 they,
17:32 they can send newsletters to their constituents and they do,
17:35 and,
17:35 and,
17:36 and we can look at the text of these newsletters and what we find here
17:39 is that immediately once you have the first case in the US there's this big jump in
17:45 The solid line with mentions of Ebola in newsletters from Republicans.
17:50 The solid blue line is from Democrats,
17:52 so you see it's,
17:53 it's much more by Republicans.
17:55 And the dashed line here uh with the axis uh uh uh uh right on,
17:58 on the right
17:59 are the newsletters that are talking about Ebola and immigration at the same time,
18:04 right?
18:04 So it's not just that Republicans are talking about Ebola,
18:07 they're talking about that in association.
18:09 with specific topics,
18:10 as illustrated by the Rand Paul quote.
18:13 And uh
18:13 uh we can look at,
18:15 at sort of exploit that timing,
18:16 and we see that Republicans start sending more
18:19 newsletters mentioning Ebola after the first case.
18:22 Uh,
18:22 in particular,
18:23 Republicans in competitive races
18:25 start sending more newsletters disproportionately,
18:27 so that's sort of indicating
18:29 that there is a strategic uh uh motive here and it's not just about Republicans.
18:32 Uh,
18:33 you know,
18:33 being more concerned in general or,
18:35 uh,
18:35 uh,
18:35 uh,
18:36 representing
18:37 places that are likely to be more concerned.
18:39 And
18:40 they are doing that in association with certain topics,
18:43 in particular,
18:44 immigration
18:45 and Obama,
18:46 right?
18:46 So that's important because they're talking about immigration,
18:49 they're talking about Obama and we've already seen that the Obama angle,
18:53 you know,
18:53 maybe,
18:53 maybe didn't work,
18:54 uh,
18:54 quite,
18:55 uh,
18:55 uh,
18:55 uh,
18:55 quite so much,
18:56 OK?
18:57 Now,
18:57 we can look at campaign ads,
18:59 and for ads,
19:00 we can,
19:00 uh,
19:01 uh,
19:01 uh,
19:01 um.
19:03 We don't have or we haven't yet uh exploited the text of the ads,
19:06 but we do have a measure of the fear content of
19:09 ads which is using uh uh the use of ominous music
19:12 and other sort of fear cues.
19:14 And what we see here is again that,
19:16 well,
19:17 both
19:18 parties are kind of uh exploiting fear and kind of increases after the,
19:21 the,
19:22 the,
19:23 the um.
19:25 The first Ebola case,
19:27 but the association with fear and immigration again is something that the
19:30 Republicans are doing and the Democrats like not quite as much,
19:33 right?
19:33 So there is this associate this,
19:34 this kind of strategic association.
19:37 And we look at the data uh more systematically and we see the same thing.
19:40 So Republicans start broadcasting more,
19:41 more ads disproportionately,
19:43 again,
19:44 more so in competitive races,
19:46 responding to the,
19:47 to the,
19:47 to the proximity.
19:48 So Republicans in places kind of closer will uh do that more as well.
19:52 And
19:53 again,
19:53 in association with immigration,
19:55 in association with Obama as well.
19:58 OK?
19:59 Now,
20:00 Phillippe,
20:00 I'll just jump in,
20:01 give you a 5 minute warning.
20:02 OK,
20:02 thanks so much.
20:03 I think I'm,
20:04 I think I'm good.
20:05 Uh,
20:05 so,
20:06 Then the question is,
20:07 uh,
20:08 did it work?
20:09 And,
20:09 and,
20:09 you know,
20:10 here it,
20:10 it's,
20:10 it's a little bit
20:12 uh complicated to,
20:13 to,
20:13 to pinpoint
20:14 the specific effect of the,
20:16 of the,
20:16 of the strategy,
20:17 but we can see,
20:19 uh,
20:19 uh,
20:20 sort of the,
20:20 the,
20:20 the change in voters' uh reported attitudes.
20:24 And I think it's particularly interesting because of the lab
20:27 evidence about the effect of like priming fear and anxiety.
20:30 Is that it,
20:31 it,
20:31 it tends to make people kind of more conservative.
20:34 So one question is like,
20:35 did Ebola make voters just kind of more conservative across the board?
20:38 And what we see here is if we look at
20:39 the congressional uh uh um uh ele um election survey,
20:44 we see
20:46 Across a number of different topics kind of related to
20:49 sort of uh uh conservative uh uh uh uh issues
20:52 uh in,
20:53 in the US and so just conservative leanings in general,
20:57 we see no effect,
20:58 so no effect of like general uh uh uh uh break towards
21:02 uh uh conservatism,
21:03 but we did see an effect about immigration.
21:06 So not about
21:07 Obama again,
21:07 cause,
21:08 you know,
21:08 consistent with the,
21:09 with the Gallup
21:10 uh data,
21:11 nothing on the Obama front,
21:13 nothing much on,
21:14 you know,
21:14 whether you're pro-gun or anti-gay marriage or,
21:16 or,
21:16 or whether you identify as conservative,
21:18 but there is this increase in,
21:20 in anti-immigrant
21:22 uh sentiment.
21:22 So the,
21:23 the,
21:23 the closest you are
21:25 to an Obama case,
21:26 uh,
21:26 to,
21:26 to an Ebola case,
21:27 I'm sorry.
21:28 Uh,
21:28 uh,
21:29 you know,
21:29 that,
21:30 uh,
21:30 is associated with voters becoming more anti-immigration,
21:33 right?
21:34 So just to,
21:35 to,
21:35 to summarize,
21:36 uh,
21:37 we find a significant effect of fear
21:40 on voting
21:41 and favoring Republicans over Democrats,
21:43 sort of,
21:44 uh,
21:44 uh,
21:44 uh,
21:44 uh,
21:44 in an important magnitude,
21:47 but
21:47 this was not driven by general disappointment
21:49 with the incumbent or sort of an association
21:52 with the incumbent.
21:53 Even though uh
21:54 uh uh that was
21:56 Republicans tried to,
21:57 to create that association,
21:59 right?
22:00 Uh,
22:00 but it doesn't seem to have worked,
22:02 right?
22:02 And it,
22:03 it doesn't seem to,
22:04 to have been driven by voters just becoming generally more conservative.
22:08 Uh,
22:09 instead,
22:10 there is evidence of that strategic behavior kind of trying to,
22:13 to,
22:13 to,
22:13 to tie Ebola
22:15 to other issues,
22:16 and it seems that the issue of immigration
22:19 was the one that seemed to stick,
22:20 right?
22:20 So this is kind of the,
22:21 the,
22:22 the basic message
22:23 that comes out of uh uh uh the paper.
22:26 So then,
22:27 I guess the,
22:27 the,
22:28 the immediate and pressing question is what does it mean now
22:31 if we think about the,
22:32 the,
22:34 the COVID shock?
22:34 And the first thing to note here is that
22:36 There are very important differences
22:39 because the,
22:39 the,
22:39 you know,
22:40 if you go back to,
22:40 to what,
22:41 to the distinction that I was trying to raise between the economic,
22:44 the policy,
22:44 and sort of the psychological uh uh dimensions.
22:47 Obviously,
22:48 the,
22:48 the economic and policy shocks are,
22:50 are much,
22:50 much bigger now because now,
22:51 like you do have
22:53 uh uh uh uh the kind of disruption that we're witnessing,
22:55 which is,
22:56 which is pretty uh uh uh unprecedented in,
22:58 in,
22:58 in sort of our,
22:59 our lifetimes.
23:01 Uh,
23:01 so it's,
23:01 it's just gonna be much bigger on that front.
23:04 But by the same token,
23:05 the fear factor uh should be much bigger now as well,
23:08 right?
23:08 Because
23:10 The actual change in the in the public health
23:13 environment and the threat that that this actually represents
23:16 is a lot
23:18 bigger now
23:19 than it was in the case of Ebola.
23:20 So you might say like,
23:21 you know,
23:21 this,
23:23 this could also be
23:24 considerably larger now.
23:25 And here I think there are some,
23:27 some important similarities,
23:29 right,
23:29 because it's also like a foreign disease,
23:32 quote unquote,
23:32 like something that is coming
23:34 from the outside,
23:35 right?
23:36 So in that sense,
23:37 it is very much kind of comparable to,
23:39 to,
23:40 to,
23:40 to the,
23:41 the type of uh uh uh uh uh threat
23:44 uh that Ebola kind of uh represented back in the day.
23:48 And
23:49 you can clearly see,
23:50 I think right now
23:51 that there is,
23:52 uh,
23:52 uh,
23:52 uh,
23:53 uh,
23:53 uh,
23:53 you know,
23:54 you can see some attempts of kind of trying to
23:57 use a similar playbook,
23:58 right?
23:58 So kind of trying to build an association with,
24:01 uh,
24:01 uh,
24:01 uh,
24:01 uh,
24:02 uh,
24:02 you know,
24:02 foreigners,
24:03 uh,
24:03 you know,
24:03 the Chinese virus,
24:04 uh,
24:04 the Wuhan virus,
24:05 or whatever that,
24:06 uh,
24:06 uh,
24:07 uh,
24:07 you can see
24:08 politicians kind of trying to do,
24:09 and,
24:09 and,
24:09 and so.
24:10 This,
24:10 uh,
24:11 uh,
24:11 um,
24:12 playing it against China or against,
24:14 you know,
24:14 foreign institutions,
24:15 now I,
24:15 you know,
24:16 the WHO or,
24:16 or what have you.
24:17 So this,
24:18 this,
24:18 uh,
24:18 uh,
24:18 uh,
24:19 strategy,
24:19 I think,
24:20 of,
24:21 uh,
24:21 building these associations,
24:23 uh,
24:23 seems to be,
24:24 uh,
24:24 uh,
24:24 uh,
24:25 uh,
24:25 it seems like it's being tried again.
24:27 And,
24:27 and the evidence that we find from Ebola is that it seems to have,
24:30 uh,
24:30 to have worked.
24:31 It seems to have resonated,
24:32 uh,
24:33 with voters back then.
24:35 So,
24:35 uh,
24:35 we might anticipate that there's a chance that this could,
24:38 uh,
24:38 play out as well,
24:40 uh,
24:40 uh,
24:40 along this dimension.
24:41 Now,
24:42 the key question that then I think,
24:44 uh,
24:44 uh,
24:44 uh,
24:45 uh,
24:45 we need to think about is
24:47 Are there other associations
24:49 that
24:50 are possible here?
24:51 Uh,
24:51 uh,
24:52 uh,
24:52 and if you think about like the way
24:54 politicians are going to respond to that,
24:55 and,
24:56 you know,
24:56 uh,
24:56 uh,
24:57 I think Republicans are,
24:58 are,
24:58 are kind of going in this direction,
25:00 uh,
25:00 uh,
25:00 which uh seems to have worked,
25:02 uh,
25:03 back then.
25:04 But
25:05 more broadly and for,
25:06 for,
25:06 for Democrats,
25:07 uh,
25:07 uh,
25:07 you know,
25:08 are there other associations?
25:09 And I think the,
25:10 the,
25:10 the key message here
25:11 is that
25:12 it's not quite automatic,
25:13 right?
25:14 So,
25:14 so,
25:14 you know,
25:15 Republicans tried certain types of associations that
25:17 seem,
25:18 you know,
25:18 don't seem to have worked,
25:20 uh,
25:20 uh,
25:20 uh,
25:20 back then.
25:21 So,
25:22 uh,
25:22 it,
25:22 it needs to be something,
25:23 or at least that's one interpretation that,
25:25 that,
25:25 that I think is plausible.
25:26 It needs to be something that kind of resonates with voters in a way that,
25:30 uh,
25:30 uh,
25:31 uh,
25:32 uh,
25:32 uh.
25:32 You know,
25:32 make sense in their minds,
25:34 right?
25:34 So this idea that
25:36 You know,
25:36 this is a disease that's coming from abroad,
25:38 therefore,
25:38 you know,
25:39 the association with immigration kind of makes sense.
25:41 Uh,
25:41 uh,
25:42 you would have to
25:43 think about whether there are other associations that
25:46 quote unquote,
25:47 make sense,
25:48 uh,
25:48 uh,
25:48 in the same way,
25:49 right?
25:49 So I think
25:51 The,
25:51 the,
25:51 the,
25:51 the things to look at
25:53 are,
25:53 uh,
25:54 uh,
25:54 uh,
25:54 you know,
25:54 these,
25:55 uh,
25:55 uh,
25:56 you know,
25:56 possible associations that,
25:58 that may or may not be present and whether politicians are going to try to,
26:01 to,
26:01 to latch on to,
26:02 to other things.
26:04 So I think in general,
26:05 it's,
26:05 it's quite uh uh uh uh overwhelmingly likely,
26:08 I think that there's gonna be be some uh uh impact.
26:11 And,
26:12 uh,
26:12 uh,
26:12 not just because of,
26:14 of sort of the huge economic and,
26:16 and,
26:16 and,
26:16 and policy shock that COVID represents,
26:19 but because of these uh psychological associations,
26:22 uh,
26:22 as well.
26:23 So I'm just gonna stop here and,
26:24 and looking forward to the,
26:26 the,
26:26 the questions.
26:29 Wonderful.
26:29 Thanks a lot,
26:30 Felipe.
26:30 Um,
26:31 let's,
26:31 uh,
26:32 go over to Stie.
26:34 Uh,
26:34 you're up,
26:34 Study.
26:46 And Stti,
26:46 uh,
26:47 your unit.
26:48 Great.
26:48 Yes,
26:49 yes.
26:49 Thank you.
26:50 Good morning,
26:51 everyone.
26:51 Hope everyone's staying safe and well.
26:53 Uh,
26:54 my presentation is uh on examining the relationship between governance
26:58 and the success of policies to manage the pandemic.
27:02 Given the unprecedented nature of this global shock,
27:06 we are learning in real time.
27:08 So in my talk,
27:09 I'll offer arguments for how we can use
27:12 available governance and political economy research to interpret
27:16 real-time events as they unfold,
27:19 and then try to offer ideas for what policymakers can do now and going forward
27:24 from a governance perspective.
27:28 Uh,
27:28 first,
27:29 um,
27:30 let's,
27:30 let's step back a bit and refresh our
27:32 minds about the thinking on the relationship between governance
27:36 and success of economic policies in general before
27:40 the coronavirus.
27:42 So before 1996,
27:44 uh,
27:45 international organizations focused on large infrastructure investments
27:50 uh that would help economies to take off and uh
27:53 in that sense,
27:54 governance was behind the curtain,
27:57 not talked about.
28:00 But after the cancer of corruption speech in 1996,
28:06 a focus on governance began to
28:08 happen in international development policy largely through
28:11 capacity building type projects
28:15 with the.
28:16 Aim of sort of building,
28:17 drawing lessons from best practices
28:20 of government agencies in developed countries
28:23 and including from countries like Singapore an
28:27 institution of Singapore style anti-corruption agencies.
28:32 And this is very much was work in progress,
28:36 and we are,
28:38 we are learning over the years about whether this kind of
28:42 transplanting
28:43 best practice
28:45 approaches from other countries works or not.
28:48 And what I think it would be fair to say that a broad conclusion is that
28:54 this remains one of the most difficult and least understood problems of our times,
28:59 how to.
29:00 Establish wise and restrained public institutions
29:04 and the way an economist would might interpret the meaning of wise and restrained
29:10 is a role for the state that is
29:12 simultaneously strong to protect property rights and establish
29:16 law and order,
29:18 but which also is circumscribed,
29:20 relying on markets for economic prosperity
29:23 and market-led growth as the most powerful engine to reduce poverty.
29:28 Yet
29:29 even in the most laissez-faire economics tradition,
29:33 there is a need for institutions going beyond
29:37 protection of property rights and legal institutions,
29:40 and this is the need for institutions to address market failures.
29:44 So before coronavirus,
29:46 we were talking.
29:46 About
29:47 the existential threat of climate,
29:50 so markets have failed to price carbon.
29:53 There was,
29:53 there is,
29:54 there's need for institutions in the very basic textbook economics model
29:59 for concerns with the ethics of distribution and inequality.
30:05 And there is again classic textbook economics model.
30:08 There's a role for institutions to address public goods problem.
30:12 And the disease control
30:15 and uh managing disease outbreak is of course the nature
30:18 of the public good problem we are dealing with today.
30:22 And part of the reason why addressing these understanding how to get
30:27 these wise and restrained public institutions has has remained such a challenge
30:32 is because power and politics is at the heart of the problem,
30:36 and many international organizations really fear talking about this openly.
30:42 Uh,
30:43 we are beginning to get better at this,
30:45 and so for example,
30:46 the World Development Report of 2017 on governance laid bare the fact
30:52 that power and politics is at the center of the problem.
30:58 Uh,
30:58 so what is different about the coronavirus times that we live in?
31:04 Uh,
31:04 is,
31:05 uh,
31:06 so one is there's sweeping public health regulations that have been,
31:10 uh,
31:11 adopted by governments.
31:12 Sorry,
31:12 I'm just trying to move my,
31:14 I cannot see my own slides.
31:17 Um,
31:20 OK,
31:20 yes,
31:21 um,
31:22 uh,
31:22 so one is that the governments have adopted sweeping public health regulations.
31:26 Uh,
31:27 the other is that governments have been thrust into commanding heights
31:31 and wartime mode of command and control,
31:33 and this raises some new questions and concerns from a governance perspective.
31:38 Will people comply with public health regulations in the popular press,
31:42 this has been labeled as an issue of trust.
31:45 Will there be riots on the streets or social chaos?
31:48 Again,
31:48 the popular press has been labeling this as arising from distrust.
31:53 Will governance challenges get worse?
31:55 Will there be power grabs,
31:56 you know,
31:57 the image of a leviathan raising its head?
32:00 Will there be erosion of markets as forces of growth?
32:03 Will the left wing governments take control?
32:06 The politics of fear lead to further erosion
32:09 of markets or worse human rights violations,
32:12 and what should international agencies do to manage or forestall these concerns?
32:18 So let me begin with the first concern that uh uh
32:22 immediately happened uh as public health regulations began to be adopted,
32:28 uh which is will people comply with public health regulations?
32:33 What are we learning from real time events as
32:36 uh this.
32:40 As this uh unfolds,
32:43 um,
32:44 the example from the United States uh
32:46 is of confusing signals from political leaders
32:50 and distrust of experts.
32:52 And this is in fact consistent with uh
32:55 established research from before the
32:58 crisis
32:58 on how ideological polarization can lead people
33:02 to resist scientific evidence that runs contrary to their pride.
33:06 beliefs.
33:07 Dan Kahan and others at the Yale Center for Cultural Cognition
33:12 have been examining this in lab experiments with American subjects,
33:16 and they find they've sort of built a body of evidence on this,
33:20 on how
33:21 people are really resistant
33:25 to science when it runs against their ideological beliefs.
33:32 And then on the other hand we have the example from India
33:35 where there were clear signals from
33:38 political leaders across all political parties
33:41 of the need for
33:43 sweeping public health regulations and lockdown in particular,
33:47 and the reading of the real-time events through the
33:52 popular press is people by and large in India
33:55 want to comply with the new rules,
33:58 but,
33:59 but too many are simply.
34:01 Physically unable to,
34:03 so we have
34:05 the case of the migrant workers who have no homes or space
34:09 to socially distance themselves.
34:11 So I'm now going to switch to focusing on the case
34:15 of India's migrant workers.
34:16 This is an image of them
34:18 leaving the capital Delhi,
34:20 where they had moved from the poorest states of India,
34:23 one of them being Bihar,
34:25 and now they are,
34:27 after the lockdown,
34:29 they were forced to move back.
34:32 And this is what greeted them when they reached home.
34:35 Their own villages
34:38 and families locked down the village,
34:41 refusing entry to the migrants returning home.
34:44 This Hindi sign
34:47 here literally says Lockdown in Hindi,
34:50 and
34:51 you can see the young people of the village trying to enforce the lockdown.
34:58 So
34:59 interpreting this,
35:01 these two contrasting examples,
35:03 on the one hand,
35:04 the richest and most advanced institutional market economy
35:08 in the world
35:10 facing real political
35:12 disagreement and confusion and resistance to
35:16 the lockdown,
35:17 and on the other,
35:18 India.
35:20 Where
35:22 these images,
35:23 despite the
35:24 the physical constraints to locking down for some
35:27 people who have no space to socially distance,
35:31 there is every effort to lock down.
35:33 So how can we think about interpret this
35:37 using available research on legitimacy and trust?
35:40 So the first argument I'm going to make is it's
35:43 useful to interpret this by distinguishing between legitimacy and trust.
35:48 While both are about beliefs or expectations about how others are likely
35:53 to behave and involve the use of informal pressure
35:56 or social sanctions,
35:59 there is an important difference that should,
36:01 that I,
36:02 the argument is,
36:03 is going to matter
36:04 in real time as events unfold.
36:08 So the,
36:09 the,
36:09 the view of legitimacy that I would argue in favor of
36:14 is comes from a recent paper by Robert Akoloff
36:18 where he models economic,
36:20 he models legitimacy in an economic principal agent
36:24 model
36:25 and in which legitimacy is defined.
36:28 As a rule specific attribute.
36:30 So in this model,
36:32 a principal with authority
36:35 is able to finds it easier to enforce an order
36:40 if the order is regarded as legitimate by the agents on whom
36:45 the principal is enforcing it.
36:47 And regarding
36:51 what it means for agents to regard a rule as legitimate
36:55 is if
36:56 they believe that others are following it,
36:59 so the compliance with the rule is
37:02 essentially enforced through peer to peer monitoring and the risk of or
37:07 the costs of incurring social sanctions should anyone deviate from the order.
37:14 Now this modeling of legitimacy in Akalot's model
37:18 is actually can be linked to similar
37:21 arguments that were made separately by Kaushik Basu
37:25 in his analysis of what explains why some countries have laws on paper
37:30 that are not effectively implemented.
37:32 And how do we get compliance with the new law?
37:36 And Korshek used the
37:39 idea of focal point in game theory
37:42 to argue that a new law
37:45 works and only works if
37:49 it switches,
37:50 if it changes the focal point
37:53 in the game being played out in society,
37:55 that is,
37:56 if it changes beliefs about
37:59 whether others are going to comply.
38:02 Uh,
38:03 and,
38:03 uh,
38:04 uh,
38:04 and
38:06 this perspective
38:07 can.
38:09 Can lead us to take to
38:12 to set out certain hypotheses about legitimacy,
38:16 which are different from
38:18 other conceptions of legitimacy,
38:21 such as in the World Development Report 2011 on conflict
38:25 in which legitimacy was bundled with government performance and service delivery
38:30 and acquired by building trust through effective service delivery.
38:34 So legitimacy and trust were conflated
38:37 and conflated with service delivery.
38:39 It's also very different from other views that say legitimacy is about democratic,
38:44 democratic processes,
38:46 and only when decisions are democratically taken do they have legitimacy.
38:50 So let me just quickly go through these
38:54 novel hypotheses based on a focal point of view
38:58 which may
39:00 Apply to real of this unprecedented pandemic going forward.
39:04 One,
39:04 legitimacy of post-shock new rules is
39:08 not necessarily lower in developing countries,
39:11 despite
39:12 pre-shock lower trust as measured by high perceptions of corruption,
39:16 for example.
39:17 2
39:18 low levels of pre-shock trust in government
39:21 can coexist with a high level of initial legitimacy
39:25 because of the nature of a global public bad shock,
39:30 because of its global scale and immediate life's risk,
39:33 which can create a focal point.
39:36 Uh,
39:36 legitimacy of new rules.
39:38 I'm going to keep putting this in parenthesis because
39:41 it should not be confused with legitimacy of institutions,
39:44 democratic institutions in general,
39:47 is lower in countries with greater
39:50 ideological polarization in political institutions.
39:53 Legitimacy is lower where government bureaucracies are weaker,
39:58 by which we mean have lower autonomy
40:00 to pursue a defined technical mandate.
40:04 And once political polarization and bureaucracy strength are controlled for,
40:09 there is the hypothesis is that there should be insignificant
40:13 difference in legitimacy between democratic
40:16 and authoritarian institutional regimes.
40:21 Let me just jump in to give you your 5 minute warning,
40:23 please.
40:24 Thank you.
40:24 Oh gosh,
40:25 OK,
40:26 um,
40:26 so the implications of,
40:28 uh,
40:29 uh,
40:29 so essentially what I've described here with a
40:32 focal point view is a windfall of legitimacy
40:37 to
40:37 many countries going forward,
40:40 which political,
40:41 which can have two very different types of effects.
40:43 Political leaders can use this
40:45 for the politics of divisiveness and fear as Felipe was just describing.
40:50 People in developing countries,
40:52 political leaders with left wing characteristics can use it for power grabs,
40:57 but it is also an opportunity for reform leaders to
41:01 strengthen public institutions in this wise and restrained ways.
41:05 And what I was going to talk about in the rest of my talk was
41:09 How can international organizations exercise
41:13 a comparative advantage they have of being outside the domestic political game
41:18 to strengthen the hands of reform leaders,
41:21 not by picking donor darlings and reform champions,
41:24 but in apolitical and nonpartisan ways.
41:27 Let me
41:29 Let me just quickly try to show you
41:32 what is the risk,
41:35 what is the governance challenge facing the
41:38 policy response that experts are advising,
41:40 which is increased direct cash transfers,
41:43 war scale management of supply chains,
41:45 testing,
41:46 testing,
41:46 testing,
41:48 and
41:49 increasing public spending on health and delivering it
41:52 through frontline health workers who can be trusted.
41:55 This was the key lesson.
41:56 From the Ebola outbreak,
41:58 so what do we know about trust now?
42:00 Trust in this case looks very different
42:03 from a large literature on generalized trust,
42:06 which is not that helpful.
42:07 So we did a survey in Bihar,
42:09 the state from which it's a very large
42:11 survey of very different levels of respondents,
42:15 and let me just quickly share with you some of the
42:19 examples of distrust coming out of this survey.
42:22 We asked.
42:24 People,
42:24 uh,
42:25 health workers
42:26 from the bottom up to the supervisor level,
42:29 about the extent to which they agree with the following statement,
42:33 irrespective of my efforts,
42:34 the system
42:35 will not allow people's health outcomes to improve.
42:39 So the top bar is for supervisors who are at the highest level in the healthcare
42:45 and the bottom,
42:46 The bar is called CHW's community health workers.
42:51 These are very humble,
42:53 low level village level health workers
42:56 across the cadres.
42:58 There's the modal.
42:59 By far the modal response is people agree with the statement
43:03 that irrespective of their efforts,
43:05 the system
43:06 they do not trust will allow people's health outcomes to improve.
43:10 Another question was,
43:11 in my work I have to take permission for every little thing,
43:14 which is a reflection of whether they are trusted to do their work.
43:18 Again across the corres,
43:21 a modal number of people agree that they
43:24 have to take permission for every little thing,
43:26 including supervisors.
43:28 Uh,
43:28 people are describing regular management meetings they have as
43:32 being about discussing bad performance and involving scoldings.
43:37 Uh,
43:37 supervisors show a similar picture.
43:39 The blue line is whether the supervisors
43:42 say they discussed bad performance in meetings,
43:44 and 76% say they always discuss bad performance.
43:49 Uh,
43:49 the frontline health workers are not getting their salaries paid on
43:53 time because these are the least trusted cadre of workers.
43:58 In the public system in India,
44:00 so the circle is around again these frontline community
44:05 health workers who at the time of our survey
44:08 had not received their salaries for 6 months or more,
44:11 and these are the providers
44:14 battling the coronavirus at the front lines who we are supposed to be clapping for.
44:20 Um
44:22 So this is completely contrary to the logic of economic theory,
44:26 which actually suggests that there should be
44:28 a reduced reliance on scoldings and high-powered incentives
44:32 and greater role for recruiting intrinsically motivated agents
44:36 and for reducing
44:37 top-down hierarchical monitoring
44:40 and greater role for autonomy and peer to peer professional norms.
44:44 This economic theory has been.
44:46 Recently augmented with insights from game theory
44:49 and what this suggests is there's a
44:51 very complementary role for communication as in any
44:55 game theoretic
44:57 multiple equilibria setting of selecting between equilibria
45:01 through communication to shift norms and beliefs,
45:04 and we have a very interesting case of
45:07 Ciara from several decades ago but which remains.
45:10 Relevant today
45:11 and which has not been
45:14 explored because Ciara took on politics centrally while external partners
45:21 have focused on social accountability interventions bypassing the state,
45:26 focusing on NGOs and communities
45:28 and in fact what all the evidence is showing
45:31 us and what people in developing countries are showing.
45:34 is they are more active is as political rather than social principles,
45:39 and there is a real need to address knowledge gaps about how to treat
45:45 contestability in local political markets.
45:48 So the immediate implications are actually quite simple.
45:51 Hi,
45:52 we're at 20 minutes,
45:53 so if you can sort of do your wrap up,
45:55 please,
45:55 that'd be great.
45:55 These are my last slides.
45:56 Thanks for your patience.
45:58 So as we provide more resources to countries and
46:02 people with great needs for basic life goods,
46:06 let's
46:07 change the situation
46:09 from the one that is currently existing in a place like India
46:14 of not paying wages to frontline health workers
46:17 and treating them as quasi volunteers,
46:20 pay steady living wages.
46:23 Along with messaging and communication,
46:26 using the game theoretic insights in management
46:28 meetings to move away from scoldings,
46:31 to signal trust and encourage peer to peer monitoring and professional norms,
46:36 use locally relevant media CRR style to broadcast messages
46:41 about the role of local political leaders in supporting.
46:45 not hindering the frontline health workers.
46:48 This is where apolitical international agencies who are not part
46:52 of the domestic political game have a particular comparative advantage.
46:56 I refer everyone to the policy research report of the Development Research Group,
47:02 Chapter 7,
47:03 Box 7.3,
47:04 about what this means
47:06 for agencies.
47:07 Like the World Bank,
47:08 which have a political prohibition
47:10 in our articles of agreement,
47:12 and failure to address politics now in apolitical ways,
47:17 and again this report discusses how that can be done.
47:21 In fact,
47:22 we will increase the risk of the politics of fear that
47:25 Felipe talked about and perhaps even power grabs by the Leviathans.
47:30 Projects and policies can immediately use
47:35 this detailed context-specific research that we've done in Bihar where
47:39 we've examined what these local media markets look like.
47:43 We should not take communication lightly.
47:46 We need,
47:46 and finally I'll just end with this,
47:48 we need more.
47:49 Political rigor and clarity
47:51 and fewer euphemisms to understand the
47:54 potential of contestability in local political markets
47:58 and internal dialogue is already ongoing.
48:01 I think we can talk
48:03 much more clearly and rigorously about it
48:06 using this moment of windfall legitimacy.
48:08 Thank you.
48:12 Wonderful.
48:12 Thanks very much,
48:13 Duty.
48:14 Um,
48:14 let's go over to Antonio for,
48:17 uh,
48:17 uh,
48:18 for some comments.
48:28 OK,
48:29 thank you,
48:29 Art.
48:30 Just a second.
48:32 I'm trying to share
48:35 my screen with the
48:38 Everybody,
48:39 And a
48:42 Just a second if you.
48:45 Hey.
48:46 OK.
49:00 OK,
49:01 would you?
49:04 Do you see my screen?
49:06 Yes,
49:06 we can see them,
49:07 Antonio.
49:07 If you can just go to slide view,
49:08 it'll be larger.
49:09 OK,
49:10 perfect.
49:11 That's great.
49:11 OK,
49:12 thank you very much.
49:13 It was a pleasure to comment on these two
49:15 papers by Stutti and by Philippe and coauthors.
49:19 I think that both papers are really,
49:21 really interesting.
49:22 The challenge I have that these papers,
49:25 even though very,
49:26 very interesting,
49:27 are
49:28 basically orthogonal
49:30 at the beginning
49:31 in the sense that one talks about legitimate and trust in a general
49:37 radical framework and Gives the case of Bihar.
49:40 The second
49:41 talks about the fear,
49:44 the role of fear in the election in 2014,
49:47 the congressional election in the US.
49:50 So apparently these two papers are very different geographically and as a
49:55 Framework.
49:56 However,
49:57 I think there are a deeper thing in common,
50:00 and I will elaborate on this,
50:02 and I think the deep thing in common is a
50:05 crisis as testing time for legacy,
50:10 for legitimacy.
50:11 Apologies.
50:12 This is a very old.
50:15 Question.
50:16 So I will use an example from classical literature to
50:20 illustrate both papers and to see how they are connected,
50:24 how they are connected,
50:26 how we can learn from the,
50:28 from the,
50:29 from the past.
50:31 I put here I have a glass so I can check.
50:35 First,
50:37 the most interesting example is actually coming from the Greek literature.
50:42 It's a history of the Pelopollesian War
50:46 by Thucydides.
50:47 There
50:48 Thucydides describes the political economy,
50:51 the political effect of the war,
50:55 and the plague in Athens and what happened,
50:59 and I think the lessons are really
51:02 very interesting for today's analysis.
51:05 Just to remind you,
51:06 in 14,030 BC,
51:08 an epidemic broke out and devastated Athens.
51:12 Citizens were very upset with the leader at the time,
51:17 Pericles,
51:18 because it was during a difficult war situation.
51:21 It was a very dramatic situation.
51:23 So Pericles gave a very important speech which is very emotional,
51:28 which became famous,
51:30 I think it's one of the most famous speeches.
51:32 In history
51:33 and it's a funeral oration it's called here in the US
51:36 and he managed to tame the people's resentment
51:40 and to ride out the storm at the beginning.
51:44 However,
51:46 there was some
51:47 internal uproar,
51:49 and they managed to kick him out for a while,
51:52 but afterwards he came back and he was re-elected and he
51:56 became the strategos again and led.
51:59 And
52:01 unfortunately,
52:01 after a few months he died,
52:03 but this is another story.
52:05 So
52:06 just to be sure
52:08 that we picture the situation,
52:10 I put also this picture you see Pericles on the
52:13 left and he giving the funeral oration on the left,
52:17 on the right.
52:20 What are the lessons which are key for today?
52:23 First,
52:23 there is a crisis epidemic.
52:25 Second,
52:26 there was an emotional final speech
52:28 which is very important for legitimacy,
52:31 and I will argue and I will see how this is connected
52:35 with what Tutti
52:36 and Felipe were arguing.
52:38 At the very short term,
52:39 there is a popular uproar.
52:41 Finally,
52:42 he is elected in the midterm.
52:44 We'll see more terminology.
52:46 He's elected again
52:48 to become stratigos and leads
52:51 with confidence the nation.
52:53 I summarize the argument in these graphs.
52:57 You have the crisis on top
53:02 here.
53:03 You have some preexisting legitimacy and you have some manipulation.
53:09 It could be good and could be bad.
53:11 You could have in the short run some political unrest.
53:15 You have two outcomes out of it
53:17 or you ennounce legitimacy,
53:19 and this is what basically.
53:24 What basically Stuti was arguing,
53:27 or you have a regime change,
53:29 and I will talk about this.
53:31 If you announce legitimacy in the short term,
53:34 you announce legitimacy for the next crisis,
53:37 and this reinforces your power
53:39 and this is what win for legitimacy,
53:42 the terminology that Tuti had introduced.
53:45 So
53:45 I like this scheme because It allows us to put all
53:49 the two papers and some research we are doing at the IMF
53:53 in a context.
53:55 Let me explain the context.
53:56 Well,
53:57 at the top left here,
53:59 some manipulation.
54:00 This is the paper by Philippe Coauthors.
54:02 They are basically trying how political manipulation can
54:09 affect preexisting legitimacy.
54:12 Possible unrest.
54:13 This is in the middle.
54:15 This is something that we are doing
54:17 here at the fund,
54:18 and I will give you some flavor of the research
54:21 in progress.
54:22 And third,
54:23 here what was talking about,
54:26 which is how legitimate interest is announced possibly
54:30 by the experience of going through a crisis.
54:34 I will talk also slightly one minute about the regime changes.
54:38 So this scheme allows us to analyze,
54:41 to put all the two papers,
54:43 the 3 papers in context
54:45 and to see how they are connected and to have a mini theory of social
54:52 crisis
54:53 and political
54:54 consequences.
54:56 First,
54:57 let me talk with the left top corner
54:59 manipulation.
55:01 As Felipe was saying econometrically,
55:04 this could be a very important role.
55:07 I go back and I take a little tour in pragmatic and linguistics
55:12 which have studied how the manipulation of language
55:15 can really affect our beliefs.
55:18 And here
55:19 the the reference is Herbert Greis and his theory of implication.
55:25 His theory is that basically Herbert Greis was a philosopher.
55:31 He wrote about 50 years ago,
55:33 I think,
55:34 and his theory was that when we do speak,
55:36 we do imply a lot of things,
55:39 and sometimes what we do imply is much more important of what we say implicitly.
55:47 So when we say I slept on a boat yesterday.
55:51 The implication is that this was not my boat.
55:55 I don't say this,
55:56 but everybody believes this.
55:58 When I say Antonio is Italian,
56:00 but he's nice,
56:01 the implication,
56:02 even though
56:03 I don't say,
56:04 is that the Italians are not nice.
56:07 This soup is not good
56:08 only for your skin,
56:09 but also
56:11 something else.
56:12 The implication that you derive is that you focus
56:15 on the good for your skin and you take for granted.
56:20 There are a lot of,
56:22 there are a lot of neuropsychological basis for this theory right now.
56:27 Basically we
56:29 use
56:30 the information given as
56:33 implied,
56:34 we take for granted and we are less prone to question it.
56:38 So this is
56:39 a technique which is widely used by
56:43 the advertisement industry and by the political messaging.
56:49 So Felipe gave a very good example,
56:51 and when
56:54 Senator Rand Paul said that a wide open policy
56:57 is not only a danger for national security purposes
57:00 but also
57:02 this means that we tend to process the information.
57:06 Danger for national security as a given,
57:08 so not to question it.
57:10 There are plenty of studies,
57:11 and I think that a possible extension of the paper is to look how implication is used
57:17 in the messaging of these various things,
57:20 and this is something that ad industry uses quite a lot.
57:25 Antonio,
57:26 I'll just give you 3 or 4 minutes to wrap up.
57:30 Thank you.
57:31 I wrap up.
57:33 Well,
57:34 I take issue for one
57:36 statement by Stuti and Vada.
57:39 Do
57:40 epidemics cause civil unrest?
57:43 This is part of the popular wisdom.
57:45 It's common.
57:47 It seems logical,
57:48 but the economic,
57:50 how to say,
57:50 the
57:52 The evidence is not clear based.
57:55 We have done some colleagues of mine are doing some study using
58:00 a novel database on reported social unrest index
58:04 measuring social unrest as reported by a news outlet
58:10 and correlate this with the database on unrest,
58:14 and they couldn't find a good a good result.
58:19 Now,
58:19 as always in negative studies we have
58:21 Look
58:23 more carefully
58:24 because,
58:25 but
58:26 we couldn't find,
58:28 no,
58:28 they couldn't find much
58:31 much
58:33 much effect of social unrest on civil unrest,
58:37 at least immediate.
58:39 We do have some anecdotes for Ebola in Liberia in 2014,
58:45 but it's not a given
58:47 that there is this strong correlation,
58:49 even despite the
58:52 Popular wisdom,
58:53 so to speak.
58:54 There is also another issue,
58:56 how do we disentangle epidemics from correlated factors,
58:59 quality of public service
59:01 or other things.
59:03 And this brings me to the last point.
59:06 Even though
59:07 Epidemics may not have a big effect in the very short term in terms of civil unrest.
59:14 They have a deeper political implication
59:17 if they are able to show how inefficient and corrupt is the
59:22 government.
59:23 Yes,
59:23 there are two
59:24 examples.
59:25 One is 86
59:28 tragedy in Chernobyl,
59:29 which was
59:31 considered a key factor in showing how inefficient and bad
59:35 was the Soviet system in dealing with a major emergency.
59:39 The second was the Mexico City earthquake
59:42 in '85,
59:43 which showed how the corruption of the PRI party
59:46 had led to many.
59:48 Preparation,
59:49 so to speak,
59:50 and violation,
59:51 widespread violation of the of the of the
59:55 code.
59:56 So
59:58 just to sum up
59:59 what we have learned,
1:00:00 legitimacy is key during crisis,
1:00:03 especially in this crisis where you do not have enough people.
1:00:08 You cannot enforce your orders.
1:00:11 You have to rely by force.
1:00:13 You have to rely on people
1:00:16 good sentiment and people's sense of responsibility,
1:00:20 and this is only if you have a legitimate example.
1:00:24 Trust and legitimacy can be boosted during crisis.
1:00:28 The funeral oration by.
1:00:33 But there is also
1:00:35 in negative you have the example by Felipe where the the shock cause
1:00:41 cause this.
1:00:42 Third,
1:00:42 there is no evidence,
1:00:44 at least as far as we know,
1:00:45 that there is
1:00:48 epidemic cause immediate arrest as Tucidides was
1:00:52 claiming and as Tutti also was mentioning,
1:00:57 but there is good evidence
1:00:59 that
1:01:01 How bad and good
1:01:02 a crisis manager
1:01:04 has long term deeper political implications.
1:01:07 These are much more difficult to measure econometrically.
1:01:11 There is a positive cycle which is called legitimate windfall.
1:01:16 That is the positive side that Tuti focused on.
1:01:20 There is also a negative possible cycle
1:01:23 which is delegitimization of the current regimes,
1:01:27 and I gave just two examples,
1:01:29 but you could find also other examples.
1:01:32 I'm done.
1:01:35 Thank you.
1:01:36 Thank you very much,
1:01:37 Antonio.
1:01:37 Um,
1:01:38 and I'll just ask you to unshare your screen so that
1:01:40 we can subsequently see other speakers when they come on.
1:01:44 Uh,
1:01:44 thank you.
1:01:45 Um,
1:01:46 and thank you very much,
1:01:47 uh,
1:01:48 uh,
1:01:48 Stutti and,
1:01:49 uh,
1:01:50 Felipe for,
1:01:51 uh,
1:01:51 for the excellent presentations.
1:01:53 We can now,
1:01:54 um,
1:01:54 go over to,
1:01:55 uh,
1:01:56 uh,
1:01:56 to our online audience for,
1:01:59 um,
1:01:59 comments and questions for the speakers.
1:02:02 What I'd like to do is actually just take a big batch of,
1:02:05 uh,
1:02:05 questions and reactions all at once,
1:02:07 and then we'll just go back once to,
1:02:09 uh,
1:02:10 uh,
1:02:10 to the three speakers to react to them.
1:02:12 I think that'll be a little more,
1:02:13 uh,
1:02:14 time efficient.
1:02:15 Um,
1:02:16 uh,
1:02:16 so if you're on Webex,
1:02:18 um,
1:02:18 please use the raise your hand,
1:02:20 uh,
1:02:20 feature,
1:02:21 and,
1:02:21 uh,
1:02:22 somehow magically,
1:02:23 I will see who has raised their hands and I'll try to get to you.
1:02:26 Um,
1:02:26 while,
1:02:26 uh,
1:02:27 you're,
1:02:27 uh,
1:02:28 waiting to formulate your questions and find the raise your hand button,
1:02:31 which is up beside your name in the top right of the screen.
1:02:33 Um,
1:02:34 let me,
1:02:35 uh,
1:02:36 just sort of ask one question that I,
1:02:38 I wanted to ask already from the middle of Felipe's presentation,
1:02:41 and I think it's a little bit in,
1:02:43 uh,
1:02:44 uh,
1:02:44 in what Antonio was talking about as well.
1:02:47 And,
1:02:47 and that is,
1:02:49 um,
1:02:49 you know,
1:02:49 at the end of Felipe's presentation,
1:02:50 you basically ask sort of what are the other associations,
1:02:52 what are the other effects?
1:02:54 And I think that
1:02:55 there is Sort of,
1:02:57 you know,
1:02:57 this what some people have now referred to in the presentation
1:03:01 as a rally around the flag effect or a solidarity effect.
1:03:04 I think the rally around the flag effect has a more jingoistic interpretation,
1:03:08 but simply,
1:03:09 you know,
1:03:09 we're all in this together solidarity effect.
1:03:12 They could actually have very,
1:03:13 very positive effects on
1:03:16 on on politics and outcomes.
1:03:18 And the other thing that I'd really like to hear from both Tutti and
1:03:22 and Felipe on is,
1:03:25 and particularly from Felipe,
1:03:26 given that this shock is so different,
1:03:28 is,
1:03:29 you know,
1:03:30 what we know about how governments are going to
1:03:32 be judged by their competence of the response,
1:03:35 and
1:03:35 I think there is this very important possible cycle of sort of delegitimacy
1:03:40 in contrast to the legitimate legitimacy windfall that Stuy talked about.
1:03:45 So let me,
1:03:46 um,
1:03:47 uh,
1:03:47 let me read out a couple of questions that we've gotten from our,
1:03:50 uh,
1:03:50 uh,
1:03:51 from YouTube,
1:03:52 um,
1:03:53 audience.
1:03:53 Um,
1:03:54 apologies cause I'm gonna have to try to sort of paraphrase them as I read them here.
1:03:58 Uh,
1:03:59 so there's a kind of a battery of questions from Sharif Salah.
1:04:03 Um,
1:04:04 uh,
1:04:04 so the first question for Felipe is,
1:04:06 what do we know about these rally around the flag effects and
1:04:10 does it provide benefits to incumbents?
1:04:12 Uh,
1:04:13 Sharif also has a question for Stuti.
1:04:15 Um,
1:04:17 On your point that legitimacy of new rules being weaker with weaker bureaucracy,
1:04:21 does that mean that the centralized states will um
1:04:24 face uh uh far less trust in centralized states?
1:04:28 Um,
1:04:30 And also
1:04:31 um a general question from Sharif.
1:04:35 Um,
1:04:35 considering that a global recession is likely,
1:04:37 at least in the short term,
1:04:39 how would this cancel out any long-term legitimacy gains,
1:04:42 um,
1:04:43 that governments might get from their handling of the pandemic.
1:04:46 So,
1:04:46 basically,
1:04:47 they'll be uh
1:04:48 rewarded for handling the pandemic well,
1:04:50 but perhaps penalized by the economic shock.
1:04:53 Um,
1:04:53 so that's,
1:04:54 uh,
1:04:55 from the YouTube audience just now.
1:04:57 Uh,
1:04:57 I'll turn over to Challar.
1:04:58 I see that you've raised your hand.
1:05:04 Go ahead,
1:05:04 Chaler.
1:05:08 Tell her you're unmuted now.
1:05:20 Duller.
1:05:21 Can you hear us?
1:05:26 You cannot hear me.
1:05:28 I think I can hear you.
1:05:29 Thank you.
1:05:29 OK.
1:05:30 All right,
1:05:30 so my question was along the same lines about decentralization.
1:05:34 I mean,
1:05:34 one thing that's common with India and the US is the decentralized figure,
1:05:38 and the response to the epidemic actually happens a lot of it at the
1:05:42 more local level,
1:05:43 at the governor's level,
1:05:44 versus
1:05:46 In the case of China,
1:05:47 where they can immediately mobilize 40,000 doctors
1:05:49 and nurses and send them to Wuhan,
1:05:51 so
1:05:52 how does that structure play in terms of chaos and
1:05:56 how does it help or hurt the
1:05:59 local versus the federal politicians?
1:06:03 Does or does does that not matter at all
1:06:05 that the
1:06:06 federal politician reaps the benefit and pays the price?
1:06:14 Thank you,
1:06:14 Chala.
1:06:15 Um,
1:06:16 uh,
1:06:17 Ala,
1:06:18 why don't you just go ahead and acknowledge anybody else with their hands up.
1:06:23 Um,
1:06:24 nobody,
1:06:25 uh,
1:06:25 so far.
1:06:26 I'll let you know.
1:06:27 OK,
1:06:28 well,
1:06:28 if you prefer to do this the way we do it
1:06:30 in real life seminars and just butt in with a question,
1:06:33 the floor is open.
1:06:34 Please just remember to unmute yourself and jump in.
1:06:44 Uh,
1:06:45 just a question or comment.
1:06:47 I mean,
1:06:47 people were writing in the chats,
1:06:49 so I actually thought that you would take comments and questions from the chat.
1:06:53 11 thing I talked about during the first presentation
1:06:58 is that the key difference with
1:07:00 coronavirus disease
1:07:02 relative to Ebola is that it was not first introduced
1:07:06 in the US by a foreigner but by a returning US
1:07:10 citizen.
1:07:11 And I'm thinking that that might have
1:07:14 uh
1:07:16 Create some differences in terms of using the immigration angle,
1:07:19 even in the fact that when the borders were closed from Wuhan in America,
1:07:24 the
1:07:25 these restrictions exempted Americans who were returning from abroad.
1:07:31 And the whole idea that you know if we are to accept globalization then this whole
1:07:37 the then travel and tourism is,
1:07:40 is,
1:07:40 you know,
1:07:41 an essential an essential part of this so you know it,
1:07:44 it would be interesting to see
1:07:46 how we deal with this
1:07:49 after COVID-19.
1:07:50 Thank you.
1:07:52 Thanks very much.
1:07:53 Um,
1:07:54 uh,
1:07:54 this is Jehan,
1:07:55 right?
1:07:55 I saw you on the chat before.
1:07:57 Yes,
1:07:58 yes,
1:07:59 thanks.
1:07:59 Um,
1:07:59 anybody else want to jump in?
1:08:00 Just,
1:08:01 uh,
1:08:01 introduce yourself as well before you speak,
1:08:03 please.
1:08:16 OK,
1:08:16 well,
1:08:16 if we don't have further questions right now,
1:08:19 um,
1:08:19 I'll just ask Ale to mute everybody again on
1:08:21 that because there's some typing in the background.
1:08:25 Thank you,
1:08:25 Ale.
1:08:26 It's great to have that power.
1:08:27 Um,
1:08:28 and,
1:08:28 um,
1:08:29 uh,
1:08:30 what I'll do is go,
1:08:31 um,
1:08:32 uh,
1:08:32 maybe just in reverse order to the speakers.
1:08:35 So I'll give Antonio a chance to,
1:08:37 uh,
1:08:37 reflect on,
1:08:38 uh,
1:08:38 some of the discussion,
1:08:39 and then we'll go to Study and we'll reserve the final word for,
1:08:43 uh,
1:08:43 for Felipe.
1:08:44 Uh,
1:08:44 so over to you,
1:08:45 Antonio.
1:08:46 Thank you very much.
1:08:48 First,
1:08:49 to
1:08:50 respond to the issues which were raised,
1:08:53 let's not forget that this pandemic happened in
1:08:56 a particular moment in the political economy history.
1:09:02 It's when populist sentiment was rising
1:09:04 all over the world.
1:09:05 Populist means that you don't
1:09:08 trust or you criticize the
1:09:10 People in power,
1:09:11 you don't believe in the power of the the experts,
1:09:16 and you don't believe in the power of coordination
1:09:19 and
1:09:21 this makes the politics of pandemics much
1:09:24 more difficult because the authorities that should be
1:09:29 overseeing the response,
1:09:31 the expert and the international and national coordination are not there,
1:09:35 are under attack already before the crisis.
1:09:39 The second,
1:09:40 and this comes
1:09:42 to answer the issue about decentralization.
1:09:45 We see something very interesting happening
1:09:47 in many
1:09:49 decentralized states or relatively decentralized.
1:09:52 There is a reluctance by the central or the local authorities
1:09:56 to take a position in the difficult tradeoff.
1:10:00 There is a very difficult tradeoff between.
1:10:02 Health and economics
1:10:04 and both are very costly
1:10:06 and both,
1:10:07 but
1:10:08 if you are successful in stopping the epidemics,
1:10:11 people will attack you because
1:10:13 the economy will suffer a lot.
1:10:15 If you are not successful,
1:10:17 they will attack you anyway,
1:10:19 so it's such a difficult trade off.
1:10:21 What we do observe is that politicians basically give up the ability.
1:10:26 The role of choosing.
1:10:29 Look at President Trump here,
1:10:31 but also in other
1:10:32 countries.
1:10:33 I'm familiar with Italy,
1:10:34 for instance.
1:10:35 Basically central authorities are a little
1:10:38 bit reluctant to take the toughest decision
1:10:41 while the regional authorities,
1:10:42 local subnational authorities are taking this.
1:10:45 It's almost as
1:10:48 despite all the rhetoric,
1:10:50 the central authority is very afraid to step up and to take a leadership role,
1:10:55 and I think that this may have in the longer term,
1:10:59 in the short term it's OK,
1:11:01 save them from criticism.
1:11:03 In the longer term
1:11:04 may have some consequence on legitimacy.
1:11:10 Thank you.
1:11:11 Thanks very much,
1:11:11 Antonio.
1:11:12 Over to you,
1:11:12 Stuti.
1:11:17 Thank you.
1:11:19 Uh,
1:11:19 first,
1:11:19 uh,
1:11:20 thanks very much,
1:11:20 Antonio,
1:11:21 for your very useful comments and
1:11:24 uh the fact that you had to deal with not 2 but 3 papers.
1:11:27 You received 2 from me.
1:11:29 Um,
1:11:29 and thank you for,
1:11:31 uh,
1:11:31 to everyone for the comments and questions.
1:11:34 Uh,
1:11:34 to
1:11:35 address the main comment Antonio had,
1:11:37 uh,
1:11:38 was taking issue with whether pandemics,
1:11:41 uh,
1:11:41 increase,
1:11:42 uh,
1:11:42 civil unrest.
1:11:44 Happy to concede the point that perhaps pandemics don't have in a statistical
1:11:50 sense,
1:11:51 a significant increase,
1:11:54 lead to a significant increase in social unrest,
1:11:57 but I think from a policy perspective,
1:12:00 that issue is not perhaps that interesting or helpful because.
1:12:04 Because
1:12:05 we were already living in a world with
1:12:07 increasing civil unrest,
1:12:10 with growing protests on the,
1:12:12 on the streets across countries.
1:12:14 And so the question is how does,
1:12:17 how do we think about the changed political setting to respond
1:12:21 to these,
1:12:23 to,
1:12:23 to this unrest.
1:12:25 On the second point that Art asked about the solidarity effect.
1:12:30 Uh,
1:12:31 yes,
1:12:31 uh,
1:12:32 indeed,
1:12:32 that is the argument I was making that part of
1:12:37 one type of association with this pandemic.
1:12:40 So to answer also Felipe's last point about are there other associations,
1:12:47 a very intuitive and obvious other association,
1:12:51 which is in the phrase we are all in this together,
1:12:54 is that health is contained.
1:12:56 This is a contagious health problem.
1:12:59 So when a fly flies don't know the difference between identities,
1:13:03 viruses don't distinguish between people of
1:13:06 different religions or ideological identity.
1:13:09 So this moment of strengthening public health systems
1:13:13 as a classic public good or with negative externalities could in fact
1:13:17 be a moment to develop those wise and restrained public institutions on.
1:13:22 Decentralization.
1:13:24 I think my response generally is I don't think it's
1:13:28 a trade off with strong bureaucracies.
1:13:31 You can have strong bureaucracies within decentralized governments,
1:13:35 and in fact what we are seeing and what we
1:13:38 documented in the policy research report on politics is that
1:13:42 local political contestation has grown around the world and across
1:13:47 sort of countries with Very different types of national political regimes
1:13:52 and these forces of local political contestability which
1:13:55 we've documented in the report in this recent
1:13:58 paper on Bihar in fact suggest ways in
1:14:01 which communication can be taken more seriously,
1:14:05 perhaps highlight this
1:14:07 solidarity rule of we're all in it together to combat a public health crisis,
1:14:12 and that is the argument that was being made.
1:14:14 Thank you.
1:14:17 Thank you,
1:14:17 Stie.
1:14:18 Um,
1:14:18 back to you,
1:14:19 Felipe.
1:14:21 Uh,
1:14:21 thanks a lot.
1:14:22 Uh,
1:14:22 a lot of great thoughts here.
1:14:23 Uh,
1:14:24 thank you,
1:14:24 uh,
1:14:25 first to Antonio.
1:14:25 I think he,
1:14:26 uh,
1:14:26 you know,
1:14:26 the best discussions are those that,
1:14:28 that,
1:14:28 that really draw these connections that like,
1:14:30 uh,
1:14:30 uh,
1:14:30 were not obvious to begin with.
1:14:31 So I think that was a,
1:14:33 that was a great discussion.
1:14:34 And just to respond to,
1:14:35 to some of the points that,
1:14:36 uh,
1:14:37 uh,
1:14:37 uh,
1:14:37 Antonio made,
1:14:38 just,
1:14:38 you know,
1:14:39 some thoughts that,
1:14:39 that occurred to me.
1:14:40 Uh,
1:14:41 you know,
1:14:41 the issue about the,
1:14:42 the messaging and,
1:14:43 and licature,
1:14:43 I think it's,
1:14:44 it's,
1:14:44 it's great and actually like the,
1:14:45 what,
1:14:46 what I see as the next step in,
1:14:47 in this particular agenda for us
1:14:49 is to sort of investigate the role of the media as well and,
1:14:51 and kind of transmitting the message.
1:14:53 I mean,
1:14:53 we point out
1:14:54 how,
1:14:55 you know,
1:14:55 the media made a big deal out of this,
1:14:57 uh,
1:14:57 uh,
1:14:57 you know,
1:14:58 just before the election,
1:14:58 and then it basically kind of collapses,
1:15:00 uh,
1:15:01 right upon the election in terms of the media
1:15:04 exposure around it.
1:15:05 So I think that's,
1:15:05 that's,
1:15:05 that's one of the key things that,
1:15:07 that we want to understand.
1:15:08 And when you,
1:15:09 when you think about uh uh uh uh you know results in,
1:15:11 in,
1:15:11 in terms of the manipulation that,
1:15:13 that Antonio,
1:15:14 uh,
1:15:15 uh,
1:15:15 uh mentioned,
1:15:16 I think one of the key,
1:15:17 uh,
1:15:17 uh,
1:15:18 insights
1:15:19 that I would draw here is that
1:15:21 it also shows sort of the limits of manipulation in the sense that like not all of the,
1:15:25 the,
1:15:25 the strategies like really worked,
1:15:27 right?
1:15:27 So,
1:15:28 so they're really heavy on the Obama angle and it didn't seem to have worked.
1:15:31 Uh,
1:15:31 uh,
1:15:32 uh,
1:15:32 so much,
1:15:32 which I think gets back to the point of sort of the other associations
1:15:36 that I kind of left hanging at the end,
1:15:37 and,
1:15:38 and Suti kind of came,
1:15:39 uh,
1:15:39 uh,
1:15:39 uh,
1:15:39 uh,
1:15:40 just right now,
1:15:41 I think,
1:15:41 uh,
1:15:41 uh,
1:15:41 very much
1:15:42 with this,
1:15:43 uh,
1:15:43 and art as well,
1:15:44 and,
1:15:44 and,
1:15:44 and when he was,
1:15:45 uh,
1:15:45 talking about
1:15:47 sort of this angle of solidarity and of health,
1:15:49 right?
1:15:49 And sort of healthcare
1:15:51 as one possible association and the anxiety surrounding healthcare,
1:15:54 particularly,
1:15:54 I think,
1:15:55 in the US but in other places as well.
1:15:56 I think these are,
1:15:57 uh,
1:15:57 the,
1:15:57 the,
1:15:58 the kinds of associations I think we may see.
1:16:00 Uh,
1:16:00 uh,
1:16:00 resonating as well.
1:16:01 So I think that's uh,
1:16:02 uh,
1:16:03 um.
1:16:04 That's,
1:16:04 that's,
1:16:04 that's really important.
1:16:06 Uh,
1:16:06 I,
1:16:07 I,
1:16:07 I think in terms of the,
1:16:08 the,
1:16:08 the question about sort of the,
1:16:10 the policy judgment and what we know about like what,
1:16:12 uh,
1:16:12 you know,
1:16:13 how voters might,
1:16:14 uh,
1:16:14 uh,
1:16:15 approach this,
1:16:16 uh,
1:16:16 I think one thing that,
1:16:17 uh,
1:16:18 uh,
1:16:18 uh,
1:16:18 um,
1:16:19 is,
1:16:19 is clear from the evidence,
1:16:21 so there's this,
1:16:21 uh,
1:16:21 paper by Neil Malhotra,
1:16:24 uh,
1:16:25 and I forget the,
1:16:25 the,
1:16:25 the,
1:16:26 the co-authors,
1:16:26 but about how
1:16:28 Uh,
1:16:28 voters don't seem to reward like preparedness for disaster,
1:16:33 right?
1:16:33 So whether you have prepared well
1:16:35 for the disaster or not doesn't seem to be rewarded.
1:16:37 So I think that's something that is important.
1:16:38 So the fact that like,
1:16:40 uh,
1:16:40 uh,
1:16:40 uh,
1:16:40 you know,
1:16:41 we were exposed to
1:16:43 Because people have a hard time making the counterfactuals,
1:16:45 right?
1:16:45 What would have happened
1:16:46 is something that people have a hard time,
1:16:48 uh,
1:16:49 making out,
1:16:49 which I think
1:16:50 gets to the point about the,
1:16:51 the,
1:16:52 the health versus economy
1:16:53 trade-off,
1:16:54 which I would frame slightly different,
1:16:56 differently from what Antonio did.
1:16:58 I don't think there is
1:16:59 right now
1:17:00 that much of a trade-off in the sense that
1:17:03 what's really uh uh uh um dragging the economy down is,
1:17:06 is,
1:17:07 is not so much the,
1:17:08 the,
1:17:09 the,
1:17:09 the measures,
1:17:10 the lockdown measures.
1:17:12 But the virus,
1:17:12 right?
1:17:13 And,
1:17:13 and the fear of the virus.
1:17:15 So,
1:17:16 you know,
1:17:16 one thing that I,
1:17:16 that I was reading that I think illustrates this is,
1:17:19 is domestic travel is still
1:17:21 quote unquote open,
1:17:23 but it's down like 97%
1:17:25 because people are not
1:17:27 are choosing
1:17:28 not to fly,
1:17:29 right?
1:17:29 People are choosing not to go to restaurants.
1:17:32 It's way down before the lockdowns
1:17:34 came into place.
1:17:35 But I think the,
1:17:36 the,
1:17:36 the,
1:17:36 the,
1:17:37 the trade-off is,
1:17:38 is before the crisis becomes evident,
1:17:40 and that's where the,
1:17:41 the,
1:17:41 the,
1:17:42 the government failed.
1:17:43 and,
1:17:43 and,
1:17:43 and it's,
1:17:43 it's kind of easy to understand the political economy of it,
1:17:45 right?
1:17:46 So,
1:17:46 if you had intervened and locked things down before the crisis emerged,
1:17:52 that would have uh had a much stronger
1:17:55 impact because it would have contained the crisis
1:17:57 earlier.
1:17:58 But you can't really do that because the backlash will be tremous,
1:18:01 right?
1:18:02 People are like,
1:18:02 are you doing all of this because,
1:18:04 like,
1:18:04 you know,
1:18:04 a handful of cases.
1:18:06 So that's where the failure is,
1:18:07 and,
1:18:07 and I think Antonio is like very right,
1:18:09 and,
1:18:09 and so that's where the trade-off is really,
1:18:11 really strong,
1:18:11 right?
1:18:12 At that point,
1:18:13 and that's what happened in Italy and,
1:18:14 and,
1:18:15 and that's kind of a failure of governance.
1:18:16 I think it's very hard to
1:18:18 Uh,
1:18:19 uh,
1:18:19 uh,
1:18:19 uh,
1:18:20 to,
1:18:20 uh,
1:18:21 you know,
1:18:21 address.
1:18:22 Uh,
1:18:23 another point about like the,
1:18:24 the,
1:18:24 the rally around the flag and,
1:18:25 and sort of what we know about that.
1:18:26 I think we know that,
1:18:27 that it exists,
1:18:28 you know,
1:18:29 in the US,
1:18:29 uh,
1:18:29 I,
1:18:30 I think it's quite clear it was in response to wars and,
1:18:33 and,
1:18:33 uh,
1:18:33 external crisis,
1:18:35 and,
1:18:35 and,
1:18:35 but I think it's very short-lived,
1:18:37 right?
1:18:37 I think people forget that like Jimmy Carter had
1:18:39 this major boost in his approval ratings when the
1:18:42 Iran hostage crisis happened in 1979,
1:18:44 because,
1:18:45 you know,
1:18:45 like,
1:18:46 There's this crisis of foreign enemy right around,
1:18:48 but that,
1:18:48 that is quite short-lived,
1:18:49 right?
1:18:50 So I think that's,
1:18:51 that's one thing that we know about that,
1:18:52 that I think is,
1:18:53 that I think is important.
1:18:54 And uh just one final point about the,
1:18:57 the,
1:18:57 the,
1:18:57 the issue of sort of the difference between
1:18:59 uh uh Ebola and COVID in terms that now,
1:19:02 uh,
1:19:03 it's not so much being brought by immigrants,
1:19:05 but,
1:19:05 you know,
1:19:06 it was returning US citizens and so on and so forth.
1:19:07 I think that's true.
1:19:09 And that's why what explains that the association
1:19:11 being drawn now is not so much about
1:19:14 Immigrants,
1:19:15 but about China,
1:19:16 right?
1:19:17 And,
1:19:17 and so it's still kind of like this outside
1:19:20 uh uh uh um
1:19:22 agent.
1:19:24 But it has to be different so that it resonates,
1:19:26 right?
1:19:27 Uh,
1:19:27 uh,
1:19:27 uh,
1:19:27 uh,
1:19:28 uh,
1:19:28 so,
1:19:28 I think that actually illustrates the point that you have to do it in a way that,
1:19:32 that quote unquote makes sense,
1:19:35 uh,
1:19:35 uh,
1:19:35 uh,
1:19:35 for voters,
1:19:36 right?
1:19:36 Or,
1:19:37 or for,
1:19:37 for
1:19:38 the audience,
1:19:39 and I think this illustrates the point.
1:19:40 So you can't say like,
1:19:41 well,
1:19:41 you know,
1:19:42 you have to close the border with Mexico,
1:19:43 even though like there has been
1:19:45 Uh,
1:19:45 some talk about that,
1:19:46 but it has,
1:19:47 you know,
1:19:47 that's,
1:19:47 that's not really what this crisis is about,
1:19:49 right?
1:19:49 It's like
1:19:50 if,
1:19:50 if fear is being triggered by shark attacks,
1:19:53 right,
1:19:54 you're not going to blame that on,
1:19:56 on,
1:19:56 on,
1:19:56 on foreigners,
1:19:57 or,
1:19:57 or it's not that obvious,
1:19:58 right?
1:19:58 So it really
1:19:59 underscores the point that the message needs to
1:20:02 find associations that resonate,
1:20:04 but I'm,
1:20:04 I'm just gonna stop here because I've,
1:20:06 I,
1:20:06 I guess I've
1:20:07 talked too much already,
1:20:08 but
1:20:09 yeah,
1:20:09 very
1:20:10 like great food for thought,
1:20:11 uh,
1:20:12 uh,
1:20:12 in all of this.
1:20:14 Well,
1:20:14 thank you very much,
1:20:15 Felipe.
1:20:16 No,
1:20:16 not talking too much at all.
1:20:17 I very much appreciate,
1:20:18 uh,
1:20:19 from all three of you,
1:20:20 Felipe,
1:20:20 Antonio,
1:20:21 and Stui for,
1:20:22 uh,
1:20:23 for your presentations and discussion.
1:20:25 And,
1:20:25 you know,
1:20:25 a little,
1:20:26 uh,
1:20:26 the odd classical reference is something that you don't normally
1:20:29 expect from our friends across the street at the IMF.
1:20:31 So Antonio,
1:20:32 very glad to see you being,
1:20:34 uh,
1:20:34 uh,
1:20:35 not typecast.
1:20:36 Um,
1:20:37 so,
1:20:38 uh,
1:20:38 again,
1:20:38 a big thank you to everyone.
1:20:39 I think my one reflection on this is that just when we're,
1:20:42 uh,
1:20:43 You know,
1:20:43 when you start looking at the epidemiology of COVID,
1:20:46 you rapidly realize that whatever you knew yesterday probably
1:20:49 doesn't apply today because things are changing so quickly.
1:20:51 And,
1:20:52 you know,
1:20:52 the same is true for the economic,
1:20:54 uh,
1:20:54 uh,
1:20:55 shock and policy response.
1:20:57 And,
1:20:57 and I'm thinking now even more so with the,
1:20:59 um,
1:21:00 you know,
1:21:00 what kind of political dynamics this will unleash
1:21:02 and how it's going to matter for the future
1:21:04 is probably in the same,
1:21:06 uh,
1:21:06 in the same vein,
1:21:07 that every day we're going to be learning something new.
1:21:10 So it's wonderful to get the uh up to-date insights from all of you.
1:21:14 Thank you very much,
1:21:15 and I'll just put in a plug that this is an ongoing series of e-seminars and uh
1:21:21 we have more coming up next week and the week after.
1:21:24 They're all listed in the,
1:21:25 uh,
1:21:25 in the invitations that you get.
1:21:27 So hope to see you at the next and subsequent ones.
1:21:30 Thank you very much
1:21:32 and uh stay safe.
1:21:34 Thank you.
1:21:36 Thank you.
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