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A Viable Vaccine for COVID-19 will not Halt the Spread of Economic damage: UNCTAD’s Report

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Impact of the COVID-19 pandemic on trade and development transitioning to a new normalOn November 19, 2020 United Nations Conference on Trade and Development (UNCTAD) released a report titled ‘The Impact of the COVID-19 Pandemic on Trade and Development: Transitioning to a New Normal’ . The report states that a viable novel coronavirus disease (COVID-19) vaccine will not halt the spread of economic damage. The economic setback will be experienced for a long time, especially by the poorest and most vulnerable countries.

Highlights of the Report:

Global Growth

The global economy will contract by 4.3%(-4.3%) in 2020 due to the pandemic.

Poverty

  • The crisis has the potential to send additional 130 million people into extreme poverty.
  • For the 1st time since the 1998 Asian financial crisis, global poverty is on the rise.
  • The rate of global poverty was 35.9% in 1990. It has been reduced to 8.6% by 2018.
  • In 2020, it has been increased by  8.8% and will rise throughout 2021.

UN’s Sustainable Development Agenda 2030 can be Derailed

There is a possibility that the United Nations’ Sustainable Development Agenda 2030 can be derailed. This can be avoided if immediate policy actions are taken.

Cost

The developing countries are incurring more cost due to pandemic, while simultaneously minimising the availability of external finance

Calls for international assistance

The report calls for international assistance, that includes offering debt relief to many poorer nations to enable them to address the pandemic’s economic impacts on their populations.

Global production networks must be more Green

  • UNCTAD has drafted a roadmap for more inclusive and better recovery, that highlights the need to reshape global production networks.
  • It also emphasised the global production networks must be more green, comprehensive and sustainable as global production networks plays a critical role in producing and distributing the new vaccine.

About the report

It is prepared by an extended interdivisional UNCTAD team led by Mukhisa Kituyi, Secretary-General, Isabelle Durant, Deputy Secretary-General, and Daniel Owoko, Chief of Staff of the Office of the Secretary-General.

Recent Related News:

According to “Trade and Development Report 2020 – From Global Pandemic to Prosperity for All: Avoiding Another Lost Decade” released by the United Nations Conference on Trade and Development (UNCTAD) Global Trade is expected to fall by 7-9% in 2020 due to the Pandemic.

About United Nations Conference on Trade and Development (UNCTAD):
HeadQuarters– Geneva, Switzerland
Established– In 1964, by the United Nations General Assembly
Secretary-General– Mukhisa Kituyi of Kenya