Further cooperation needed to end economic scars of coronaviruses

Global pandemic, Coronavirus

The economic recovery from the COVID-19 pandemic has started in parts of the world, but many vulnerable countries remain in recession with rising infection rates and shortage of affordable vaccines.

A statement issued in Accra by Marilou Uy, director of the G-24 Secretariat, said the crisis had strained health systems and severely affected the economies of developing countries.

He said rapid access to affordable vaccines would be crucial for recovery in developing countries.

The statement said access was now severely limited by the existing supply, which had mainly been bought by advanced economies.

He said millions of people had fallen into extreme poverty and food insecurity had increased sharply, especially in the poorest countries and those living in situations of fragility and conflict.

“The destruction of COVID-19 is global and will only be overcome by a strong global response ensuring equitable distribution of vaccines and sustainable support to vulnerable developing countries, Mr. Abdolnasser Hemmati, Governor of the Central Bank of Iran and President of the Group of Twenty. Four countries (G-24), said in the statement.

Mr. Hemmati said the G-24 believed that all should recognize common humanity and work together to defeat the pandemic.

G-24 members commended the rapid international economic and health support to the crisis so far, but noted that intensified action was needed to end the pandemic and prevent long-term economic damage in the future. vulnerable countries.

He said COVID had severely disrupted economic activity in many developing countries and intensified their fiscal and debt problems.

“Recovery to pre-pandemic levels could be extended where countries do not have the income or borrowing capacity to boost their economies,” the statement said.

International aid to developing countries fell short of their estimated additional financing needs of $ 2.5 trillion.

The G-24 countries therefore called for increased concessional financing and ensuring sustainable positive net transfers from the World Bank and other multilateral development banks (MDBs).

They said it was to avoid prolonged damage to the development prospects of vulnerable developing countries.

He also called on the international financial institutions, in particular the IMF and the World Bank, in coordination with the international community, to ensure the availability, to the extent possible, of the necessary liquidity and budget support for all developing countries. .

The G-24 welcomed stronger support for a proposed new allocation of IMF Special Drawing Rights (SDRs), which could help meet countries’ liquidity needs.

The statement said, given that advanced countries would receive a large share of the new allocation, the IMF should put in place mechanisms so that countries that do not need SDRs can use them for the benefit of others.

G-24 members called on the World Trade Organization and MDBs to seek solutions to scale up vaccine production, including addressing intellectual property rules to expand manufacturing of vaccines and other necessary medical products to treat people infected with COVID-19.