Every country in the world is experiencing an economic shock as a result of the Coronavirus crisis, and all governments must act now to protect their people from destitution. Unless dramatic action is taken to shore up the economies of developing countries, the crisis could push as many as half a billion people into poverty. This could set back the fight against poverty by a decade, and in some cases by as much as 30 years.
Unchecked, the virus could take as many as 40 million lives. Yet the devastation will not end there. All over the world, the virus is having a huge economic impact as economies shut down to try and stop the spread of the disease. In countries like Kenya and Cambodia, tens of thousands of factory and farm workers are being told to go home. Women workers will be among the hardest hit, as they are more likely to be engaged in informal and precarious work. The choices being made now will have profound implications for our collective future.
Oxfam’s Economic Rescue Plan For All includes six recommended actions:
- Give cash grants to all who need them.
- Bail out businesses responsibly, with priority given to supporting small businesses.
- Suspend or cancel debt payments of developing countries.
- Issue $1 trillion in Special Drawing Rights as a one-off global economic stimulus.
- Increase aid immediately to support the poorest nations.
- Adopt emergency solidarity taxes.