An economic tragedy in developing countries
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| An economic tragedy in developing countries |
The international community must ease the pressure to pay off the debts of developing countries
Well, no economy in the world has escaped the crisis triggered by the new corona outbreak. The world economy itself has entered a recession, everyone agreed that it was the deepest since the Great Depression in 1929, and deflation has, with differences, become an increasingly important argument for this economy. Plains from one country to another. Debt is rising, unemployment is rising, and institutions have gone bankrupt or turned to governments to bail them out. Even large corporations run the risk of long-term government control. In other words, it has been nationalized, although most of the countries in the world don't like that description. The big unfortunate thing about this is that the world economy suffered from slower growth prior to the aforementioned global pandemic. And there are large economies that demanded growth, albeit at very low rates.
In this scenario, developing countries lead the way in terms of risks to their economies. These export-dependent countries, like others, suffer from a decline in world trade as well as an interruption in production or, at best, a decline in output due to the epidemic and its economic and social effects. In addition, these countries are already under irresistible financial pressure from the debt payments they owe as they face the aftermath of the deadly pandemic. Among these countries are the ones that top the list of the poorest internationally, who are doubling the economic tragedy, not to mention having achieved acceptable growth before the current crisis and also made qualitative leaps at the trade level. . and of course benefit from the facilities of the most important countries. And duty exemptions from which their exports benefit.
In developing countries, industrial mobility increased in several sectors, including textiles, clothing, and parts for many engines, as well as agricultural production and the service sector. All of this has stopped or slowed since the beginning of this year, putting pressure on developing country budgets and key development plans, some of which have received direct support from the international community. Everything slows down or stops now. This has led United Nations agencies to warn of the serious dangers threatening development projects in dozen of poor countries, including, of course, those relating to education, health, and the environment. , Infrastructure and others. While the international commitment to these projects has not waned, the confusion caused by the corona epidemic is still uncontrollable.
During the recent "G20" summit led by Saudi Arabia, Riyadh wanted to put the aspect of support for the global economy on the agenda, in particular the aspect related to developing countries in this area. Economy. In a historic step, this summit approved a global rescue plan of up to five trillion dollars. The poorest developing countries need help and support as soon as possible. This explains the decision by 225 heads of state and government, including presidents and former heads of state and government, to put this issue in the attention circle that Saudi Arabia has initiated since the current crisis began. The poorest countries need the remaining $ 2.5 trillion, they say. The leaders see "a message of hope for the future" in this movement. This happened at the G20 summit, which took place under the presidency of the Kingdom.
The whole world is aware of the economic problem after the pandemic that no one expected, but there are areas where rapid action must be taken in order to keep the development momentum in them and to keep them moving forward, but before that, there has to be the pressure they are facing are exposed, particularly in terms of reducing the debt incurred. After the global economic crisis that broke out in 2008, the "G20" took the lead, not because it actually controls 85% of the world economy, but because it has important countries. From there, initiatives related to the epidemic crisis were launched by this group, in the midst of a Saudi movement that has not stopped but has taken advanced forms in line with current developments and developments.
Of course, there is a difference between high-income developing countries and low-income countries. This is reflected in their own debt levels. From here, it is possible to understand the call to relieve pressure from this aspect at the current stage. The current economic tragedy is global, but its degrees vary from one region to another, and in one region there are levels of this tragedy. And developing countries remain the most vulnerable. The pandemic struck at a particularly difficult time, which made its consequences more severe. Despite the extremist calls for protectionism and isolationism, there is no way to control their damages and ensure recovery from them without full international cooperation. Responsibilities fall on the shoulders of all parties without exception, and history records in its books all the details.