G-20 meet to discuss global actions against virus
There is hope for agreement to allocate funds to poorer countries trying to counter Covid-19 pandemic
London
G-20 finance ministers and central bank governors are to hold a virtual meeting on Wednesday to discuss potential global actions against the Covid-19 pandemic.
The hope is that there will at last be an agreement with specific promises to help stricken Third World communities and refugee camps. In these poorer communities, numerous people live in close contact without adequate water, sanitation and health facilities. If the virus takes hold in these places, the potential outcome is too horrific to imagine.
Bill Gates, Microsoft's founder, has called for a "global approach" to fight the disease. He has warned that if the virus is left to spread through developing nations unhindered, it will rebound and hit richer nations in subsequent waves.
"The virus doesn't care about borders" he wrote in The Sunday Telegraph. "Even if wealthy nations succeed in slowing the disease over the next few months, Covid-19 could return if the pandemic remains severe enough elsewhere."
At the previous G-20 virtual meeting on March 26, the G-20 made a general non-specific statement that it "is committed to do whatever it takes to overcome the pandemic, along with the World Health Organization (WHO), International Monetary Fund (IMF), World Bank Group (WBG), United Nations (UN), and other international organisations.
Without disclosing details, the communique claimed that the G-20 was "injecting over US$5 trillion into the global economy as part of targeted fiscal policy, economic measures and guarantee schemes".
Saudi Arabia is currently holding the presidency of the G-20 which includes the Group of Seven nations - United States, Germany, Japan, UK, France, Italy and Canada. The other 13 nations besides Saudi Arabia include China, Argentina, Australia, Brazil, India, Indonesia, Mexico, Russia, South Africa, South Korea and Turkey. Collectively, its members represent more than 80 per cent of the world's gross domestic product.
Mohammed Aljadaan, Saudi Minister of Finance, and Ahmed Alkholifey, governor of the Saudi Arabian Monetary Authority, will hold a press conference after the meeting to highlight its outcomes. Hopefully there will at last be progress to implement the G-20 leaders' promised but so far vague commitments made at the previous summit.
Criticism and appeals illustrate that there is widespread concern that the G-20 has been slow to react to the crisis.
A week ago, many former global leaders, scientists, philanthropists and top business executives urged the G-20 to allocate at least US$150 billion for developing countries to fight the medical and economic crisis. They called for US$35 billion to support countries with weaker health systems and especially vulnerable populations. They also wanted the G-20 to approve US$8 billion in emergency funding to speed the search for a vaccine, cure and treatment for Covid-19, and prevent a second wave of the coronavirus pandemic.
The VIPs also suggested that the G-7 and especially China waive this year's debt repayments from poorer countries, including US$44 billion due from Africa.
The request follows an appeal from nearly 140 campaign groups and charities. They have have urged debt forgiveness from the IMF and World Bank, G-20 governments and private creditors.
The British-based Jubilee Debt Campaign has asked for an immediate cancellation of 69 poor countries' debt payments for the rest of the year, including to private creditors. Jubilee estimated that it would free over US$25 billion for the countries, or US$50 billion if extended till 2021.
The IMF is making US$50 billion available from its emergency financing facilities, and over 90 countries have already asked for help.
The World Bank has also approved a US$14 billion emergency Covid-19 response package, and said that it stands ready to provide US$160 billion in aid over the next 15 months.
