Dr. Ernest Addison
GOVERNOR OF the Central Bank, Dr. Ernest Addison, has stated that the shockwaves from the Covid-19 crisis could lead to a lost decade for the world’s poorest countries unless they receive urgent help and financial assistance.
Speaking as the Chairman of the Board of Governors of IMF/World Bank Member States’ Annual Meetings Plenary Speeches on Thursday, he said, “We are facing the prospect of years of poverty reduction and economic progress being reversed by the pandemic. Fellow governors, the time to act is now.”
Continuing, Dr Addison said, “We need to enact policies that protect recent hard-won human capital gains and prevent long-term damage to the poorer and vulnerable segments of our societies. We also need continued support from the international community to avoid this health crisis becoming a humanitarian crisis,” adding, “As we move out of firefighting mode, we should think about the type of post-Covid world we want to shape. We need a recovery that is people-centred, sustainable and fair.”
Dr. Addison stated that the impact of Coronavirus on emerging markets and low-income countries has been particularly severe.
“Social distancing and lockdown of cities have come at an economic cost—an unavoidable trade-off.”
He noted that “though the pandemic has evolved more slowly than in other parts of the world, many of these economies have been affected by spillovers from weaker global demand, lower commodity prices and a drop in tourism, with a disproportionate impact on low-skilled workers and those employed in the informal sector, potentially pushing families back into poverty.
“Countries’ additional Covid-related fiscal spending has led to higher financing requirements. For many emerging market and developing countries, the crisis has triggered urgent liquidity pressures. The fund and the bank have responded swiftly and at scale, helping countries strengthen their pandemic response and healthcare systems.
“The bank is providing up to US$160 billion in financing tailored to the health, economic and social shocks countries are facing. Emergency operations to fight the pandemic have reached 100 developing countries. Fast-track facilities were rolled out to ensure swift and broad support to help countries deal with their immediate health emergency needs. The bank is also a strong advocate for equitable access to any Covid-19 vaccine, which will be especially critical for the poorest countries.”
“As an important complement to the emergency financing provided by the fund and the bank, the G20 Debt Service Suspension Initiative (DSSI) has provided temporary suspension of bilateral debt service payments to 43 countries.”
By Melvin Tarlue