On 21 April 2021, our Chief Economist Hans Holzhacker participated as a panelist in a virtual policy dialogue for North and Central Asia organized by UNESCAP. Ms. Lin Zhuo of UNESCAP presented the Economic and Social Survey of Asia and the Pacific 2021 which she co-authored. She highlighted several main messages that recovery policy packages shall focus on building resilience and the SDG 2030 agenda; planning and policymaking requires a more integrated risk management approach; and investments in social services, digital access, and green development shall be prioritized. Dr. Holzhacker commented on the UNESCAP survey and its conclusions. He emphasized the need for careful phase-out of support measures to mitigate the looming K-shaped recovery in the CAREC region. He called for active policies to meet the challenges of technological change, accelerated by COVID-19, including digitalization and decarbonization. Such policies should address required re-qualification, labor market policies, infrastructure, technology transfer and foreign investment with a CAREC regional dimension, where possible.