G20 leaders met yesterday to discuss the fall-out from the coronavirus pandemic. Following calls for greater global coordination, their virtual meeting was welcomed but the resulting statement fell well short of what was expected. One significant forward-looking measure was to ask finance ministers to develop a G20 action plan. The human, health and economic impacts of COVID-19 are already highly visible – including in Africa (PDF). It is imperative that the G20 action plan therefore provides more urgent, comprehensive and concrete steps to protect the poorest and most vulnerable countries and people. What is useful in the G20 statement?- Health response. The statement commits to fighting the pandemic by taking “all necessary health measures” and strengthening the mandate of the World Health Organisation (WHO).
- Trade response. “We will work to ensure the flow of vital medical supplies, critical agricultural products, and other goods and services across borders, and work to resolve disruptions to the global supply chains, to support the health and well-being of all people.” This is an encouraging statement as so far trade policies have become more restrictive. The fact that the G20 has asked trade ministers to assess the impact of the pandemic on trade is a positive step.
- Initial stimulus packages in G20 countries themselves. Over the recent weeks, the G20 announced a stimulus of $5 trillion worth 8% of GDP. A response is much better than no response, but it falls short on a stimulus for the poorest countries.
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