PRESS STATEMENT: INCREASING GLOBAL SOLIDARITY
FOR IMMEDIATE RELEASE
The world is in a unique moment with uncertainties across nations and continents. It is clear that mankind is confronted with a situation which is threatening all of humanity in a dangerous and unpredictable way. To overcome the current pandemic permanently there is a need for increased global solidarity and coordinated response. The nature of this pandemic is such that as long as some locations are infected, all locations are threatened.
World Trade is expected to fall by between 13% and 32% in 2020 according to new World Trade Organisation (WTO) Forecasts. The International Labour Organisation (ILO) predicts that at least 195 million full-time jobs may be lost as well. Many countries are embarking on aggressive measures to end the pandemic while putting in place robust stimulus packages to shock their economies and prepare for recovery as soon as is feasible. This is highly commendable. However, in this critical time it is important to fashion out a response that will support all economies. While some countries are better resourced to be able to fight the pandemic others are not. Because of the uniqueness of this scourge, as long as some countries are unable to muster the resources required to overcome it, all other countries are in some level of danger. In light of this it is important that all countries and continents make adequate plans to deal with the pandemic as a collective.
Developing and debt-stressed countries will require significant support during this period because many of these nations are severely affected as a result of heavy debt burdens, crash in global oil and commodity prices, tourism etc. Some of these countries who are most affected may run the risk of social unrest and turmoil if urgent and decisive actions are not taken to stabilize their economies. Many of these countries are making determined efforts within their current means. Because the world is a global value chain it will be in the long-term interest of the global economy to ensure that all countries are strengthened to overcome the impact of the pandemic.
The G-20 $5 Trillion response to the pandemic and global economic slowdown is laudable. Below are a few of the various multi-country response packages which are quite encouraging:
African Development Bank Group - $10 billion Response Facility.
European Union – Team Europe to support countries in the fight against the pandemic with an overall financial support of more than Eur 20 billion. This incorporates the Eur 15.6 Bn - EU Global Response Package (Designed to help in immediate health crisis, strengthen water and sanitation systems, research capacities and address social and economic consequences).
United States Agency for International Development (USAID) – Announced $274 million to combat pandemic. More than $2 billion – which Congress provided to USAID and State Department is being put to save lives.
United Nations - $2 billion global humanitarian response plan to fund the fight against the pandemic in the world’s poorest countries.
World Bank - $1.9 billion – For an initial 25 Countries.
Already have health response operations moving forward in over 65 countries.
Redeploying existing World Bank financed projects worth up to $1.7Bn.
World Bank Group is prepared to deploy up to $160 billion over the next 15 months as well to address the scourge.
International Finance Corporation (IFC) - Providing $8 billion in financing to help private companies affected by the pandemic and preserve jobs.
Multilateral Investment Guarantee Agency (MIGA) - $6 billion in guarantees and broader financial support.
International Monetary Fund - $1 trillion war chest to help member countries and the global economy from the scarring of this crisis.
This level of support is timely and critical for many developing nations. However, intervention is also urgently needed in some other areas. Some recommendations are as follows:
In this unique moment the G-20 nations and global financial institutions are urged to support total debt forgiveness for all poor and most debt-stressed developing countries. A combination of partial debt forgiveness and debt relief packages should be designed and developed for middle-income countries worldwide. This is an unprecedented request but we are in unprecedented times. With the full impact of the pandemic not yet known (especially as it is not really known when the scourge will end definitively) it is important to strengthen developing and emerging economies primarily by significantly reducing debt burdens.
Provision of grants to developing countries worldwide. These grant packages will help primarily with funding to secure the necessary health response and strengthen these emerging economies to respond adequately to the economic impacts (support social protection, significantly reduce job losses, strengthen small and medium scale enterprises (SMEs), keep industries productive, increased partnership with the private sector etc).
Loans with low interest rates. While debt forgiveness and relief ease the burden on debt-stressed countries quickly, if the pandemic and the global economic slowdown persists, some countries may need to resort to new facilities. These should be available at discounted rates.
Other key issues to note are:
There is a need to ensure that efforts towards gender equality are sustained and increased worldwide.
It is also important to increase support to the World Health Organisation (WHO) which plays a key global role in ending this pandemic.
Increased financial support to ensure the achievement of the Sustainable Development Goals (SDGs) and aid.
It is germane that strong and effective mechanisms are put in place to ensure that grants and loans are properly and appropriately utilized by beneficiary countries.
Stringent measures to keep humanity safe cannot and must not be an excuse to violate human rights or engender despotism.
There should be strong consideration for the lifting (at least temporarily) of economic sanctions on countries.
Increase trade between the developing and developed countries especially as relates critical equipments and items required to end the pandemic.
In the interest of global security it is also essential to determine the root causes of this pandemic so as to forestall a reoccurrence. Explanations will be needed while accountability is pertinent.
Prioritise innovation. The most sustainable way to increase efficiencies between countries is to leverage technology. Developing nations especially should be supported to strengthen their innovative capacities.
This is the time for extraordinary global solidarity. The world has a common humanity irrespective of race, religion, ethnicity, colour and nationality. We must all remember that there is no humanity without humans. We must urgently act to save lives and keep the world safe.
Humanity shall prevail!
God bless humanity!
Signed
Abiodun Ajijola
National Coordinator
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