UN: Rich countries secure $10 trillion to fight the virus while fragile, poor countries are struggling with much less resources

New York, September 9 – Rich countries have adopted economic stimulus packages worth more than $10 trillion to protect their own populations from the coronavirus while the weakest and poorest countries in the world with much less financial resources are those that will be the worst affected by the virus, a United Nations official warned the UN Security Council in a meeting to review the global efforts against the pandemic.

“The G20 and OECD countries have, rightly, adopted domestic economic stimulus measures amounting to more than $10 trillion to protect their own populations from the worst effects of the pandemic and lockdown. That amounts to more than 10 per cent of global income,” said Mark Lowcock, the undersecretary general for humanitarian affairs and emergency relief coordinator. He referred to the world’s 20 largest economies and banking institutions and high-income countries in the Organization for Economic Cooperation and Development.

“Low income and fragile countries do not have the resources, capacity or access to markets to do the same thing. So they are reliant on support from elsewhere, especially the international financial institutions.”

Lowcock said of the $143 billion promised by the international financial institutions only 7 per cent so far have been committed to low income countries, representing little more than 2 per cent of their combined GDPs.

“To speak plainly, woefully inadequate economic and political action (to support poor countries) will lead to greater instability and conflicts in the coming years. More crises will be on this Security Council’s agenda,” Lowcock said. “The burden of my advice to you today is that while we may have been surprised by the virus, we cannot say the same of the security and humanitarian crises that most certainly lay ahead if we don’t change course.”

Lowcock began his briefing to the 15-nation council by saying that there are now growing reasons to believe that in the medium and longer term the “weakest, most fragile and conflict-affected countries will be those worst affected by COVID-19.”

“The virus is everywhere,” he said, pointing out that there are now more than 26 million confirmed Covid-19 cases and more than 860,000 deaths with roughly a third of the cases and deaths are in countries affected by humanitarian or refugee crisis or those with high levels of vulnerability.

The full extent of the pandemic remains unknown while testing levels are very low and those infected by the virus may be reluctant to seek help to avoid being quarantined or they do not trust the medical services offered to them, he said.

The UN has raised around $2.4 billion since March when its first launched an appeal for funds to fight the coronavirus from generous donors and is now seeking $10 billion to cover activities in the coming six months to support 250 million people in 63 countries, Lowcock said.

He said the money already received was meant to assist poor countries as well as to provide personal protective equipment, including masks, gloves and gowns to 730,000 health workers; information on the virus and how to protect yourself from it to more than a billion people in nearly 60 countries; to reach nearly 100 million children with distance learning and provide tens of millions of people with soap, detergent and other improvements to water and sanitation systems.

Lowcock said the indirect effects of Covid-19 are mostly on the global economy but the most fragile economies are hit harder by weakened commodity prices, declining remittances and trade disruptions. Covid-19 also hurt public services, especially health and education across the world but the impacts are harder for poor countries. He said any reduction in the availability of basic health services would hurt poor countries more, citing immunization and food security as two obvious examples.

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