Public Management

International community must act to avert a two-speed global economic recovery post Covid-19

International community must act to avert a two-speed global economic recovery post Covid-19
Friday, 27 August 2021 18:33

Heads of international development institutions held a closed-door session with German Chancellor Angela Merkel on Thursday to discuss the uneven global economic recovery, access to vaccines, and strategies to drive a recovery from the Covid-19 crisis.

Merkel was joined by the heads of the African Development Bank, World Trade Organization, the International Monetary Fund (IMF), the World Bank, the Organisation for Economic Cooperation and Development (OECD), and the International Labour Organization (ILO). “We have noted that the recovery after the pandemic is a two-speed recovery, which is cause for concern,” Chancellor Merkel said.

The German leader added that the G7, IMF and World Bank continued to take measures to assist lower- and middle-income countries. She mentioned the IMF Special Drawing Rights and the importance of channeling them in a way that benefits the world’s poorest countries.

Highlighting the IMF’s projection of 6% global growth in 2021, IMF Managing Director Kristalina Georgieva said: “The composition of the 6% is changing, with advanced economies broadly accelerating growth, whereas most emerging markets and developing economies are falling further behind. This is a dangerous divergence.”

The consequences of the disparity include continuing supply chain disruptions and the risk of giving up hard-won gains in development, which would fuel unrest and instability.

Georgieva concluded that vaccines remain the number one priority today. World Bank President David Malpass reiterated this. He said progress had been made under the African Vaccine Acquisition Trust (AVAT) initiative of the Africa Centres for Disease Control and Prevention, but that advanced economies still need to make doses available to the rest of the world.

On debt relief, Malpass said: “I have actively advocated for more transparency with regard to debt, as well as a greater balance within the debtor/creditor relationship around the world.”

Addressing Africa’s economic prospects, African Development Bank President Akinwumi A. Adesina said the continent’s economies were forecast to grow by 3.4%. He said the IMF special drawing rights were invaluable in facing down economic headwinds. “The recent IMF release of $650 billion in SDRs, with $27 billion to Africa, will go a long way in helping to boost reserves for developing countries,” he said. He added: “If the developed countries reallocate $100 billion of SDRs to Africa, as agreed at the Paris leaders meeting and by the G7, that will further support faster economic recovery in Africa.

ILO Director General Guy Ryder said the impact of the pandemic on labour markets was four times greater than the 2008-2009 financial crisis. “We’ve recovered perhaps half of the damage done in terms of work being done, but all of us agree that the recovery process is incomplete, uneven and fragile,” Ryder said.   

The institutional heads included messages of praise and farewell for the outgoing chancellor’s leadership on her thirteenth and final sit-down as head of state with them.

The meeting took place a day before a Compact with Africa conference, which several African heads of state are attending. The Compact with Africa is a G20 initiative that promotes private investment in Africa. It involves reform of the continent’s macroeconomic, business and financing frameworks.

 a0669d32e540eb09a9772a3d7db951fe L

Additional Info

  • communiques: Non
  • couleur: N/A
On the same topic
Côte d’Ivoire will receive $234 million for a sustainable urban mobility project in Abidjan. Gambia will receive $32.2 million to build...
Stanbic IBTC and Zenith Bank cut monthly card spending abroad to $500 and $200 Foreign reserves fall by $3.5 billion in six...
Cauri Money launches Gajo Money, an e-wallet for the Cameroonian diaspora, targeting €120 million in transactions by end-2025. The fintech...
• Kenya and ASR sign deal to reduce risk on projects worth up to $2 billion.• Risk cover will target infrastructure, energy, logistics, and trade...
Most Read
01

• Investors seem to keep focusing on yields, which are high for the moment• New Leadership might see...

Afreximbank Bonds Retain Market Confidence Despite Moody’s Downgrade
02

• ECOWAS Bank funds 47.7-km stretch of strategic 700-km road project• Lagos-Calabar highway seen boo...

Nigeria Secures $100 mln ECOWAS Bank Loan for Lagos-Calabar Coastal Highway
03

• Algeria grants commercial 5G licenses to top three telecom operators: Mobilis, Djezzy, and Ooredoo...

Algeria Awards Commercial 5G Licenses
04

• IFC teams up with AfDB and Nigeria’s EbonyLife to assess a new fund for African cinema• Sector cou...

IFC Plans Investment Fund to Help Grow African Film Industry
05

• Global coffee consumption projected to hit a record 169.4 million 60-kg bags in 2025/2026, up from...

Coffee: Global Consumption Expected to Reach Record Level in 2025/2026
Enter your email to receive our newsletter

Ecofin Agency provides daily coverage of nine key African economic sectors: public management, finance, telecoms, agribusiness, mining, energy, transport, communication, and education.
It also designs and manages specialized media, both online and print, for African institutions and publishers.

SALES & ADVERTISING

regie@agenceecofin.com 
Tél: +41 22 301 96 11 
Mob: +41 78 699 13 72
Média kit : Download

EDITORIAL
redaction@agenceecofin.com

More information
Team
Publisher

ECOFIN AGENCY

Mediamania Sarl
Rue du Léman, 6
1201 Geneva
Switzerland

 

Ecofin Agency is a sector-focused economic news agency, founded in December 2010. Its web platform was launched in June 2011. ©Mediamania.

 
 

Please publish modules in offcanvas position.