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Smart Development

Un compromiso con África

May 1, 2020 Abiy Ahmed

ADÍS ABEBA – El mundo no se librará de la pandemia de COVID‑19 hasta que todos los países se libren del coronavirus que la provoca. Este sencillo hecho pone de manifiesto la urgencia de la conferencia global de donantes que se celebrará el 4 de mayo: el único modo de evitar una segunda ola del virus el próximo otoño boreal es ayudar ahora a los países en desarrollo a mejorar su capacidad de combatir la enfermedad.

Los países desarrollados han ofrecido kits de testeo, respiradores y equipos de protección individual, y los gobiernos de la Unión Africana lo agradecen. Pero para empezar a ganarle a la COVID‑19, es necesario que los países más ricos oigan y respondan los pedidos del mundo en desarrollo en el sentido de adoptar una estrategia integral para superar la doble crisis, sanitaria y económica, que enfrentamos.

Hasta ahora, ha habido una enorme divergencia entre la retórica de los dirigentes de los países ricos, que hablan de una crisis global histórica y existencial, y el apoyo que parecen dispuestos a dar a los países pobres y en desarrollo. De hecho, hasta la semana pasada, los países africanos gastaban más en pago de la deuda que en salud.

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0 Comments on this paragraph, 22 Comments on this article

Henk Crop May 4, 2020

In this article as well as in most comments on the troubles in Africa the root cause is not mentioned, that is the population explosion.
That is all done locally. All countries are also sovereign Nations.
Therefore there are limits to what others, such as the world, can do to help.
Every year the World population grows by 83 million people of which 97 % in developing countries. Much of that is happening in Africa where they have birthrates of up to 7 children per woman. While 2,1 is needed for a stable population.
China (and others), which was just as poor as Afirca a generation ago, has shown the way out of poverty. However, as the coronationvirus has shown not without immense trouble.
The world, but in particular the African leaders, face challenges of biblical proportions, which require not only money to solve but above all sound policies.
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Anne O. Krueger May 3, 2020

None of us will be secure until we are all secure. The coronavirus is a common enemy and no one can breathe easily until everyone can. It is in the interests of all of us in the rich countries to support efforts as much as we can to mitigate and eradicate the novel coronavirus in the poorest ones.

The challenge facing the poorest countries is truly intractable. Extended families of up to ten and even more live in one or two rooms, making social distancing impossible. Poor people without electricity must shop for food almost every day and must often walk down crowded narrow alleys which make things even worse. Hospital capacity is severely limited.

Of course the rich countries should help, partly because we are all in this together, and cannot insulate ourselves from what happens elsewhere, and partly because it is the humanitarian thing to do. Even though the virus is new we have already learned much. A principal lesson is that acting sooner is far less costly than later efforts. An investment now will yield more than efforts at a later date.
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Donald Mark Ritchie May 3, 2020

Thank you Prime Minister Abiy Ahmed for this clear and comprehensive vision for what we must do next. Your speech in Minneapolis, Minnesota last year still inspires us and the partnerships created through your visit remain a powerful foundation for on-going work to link Minnesota with Ethiopia. Thank you for your leadership. It's what the world needs now.
Mark Ritchie, President, Global Minnesota
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Chang-Tai Hsieh May 3, 2020

The proposal is important, but it is unlikely to result in much action as all the advanced countries are focused almost exclusively on their own people and economies. For example Ethiopia and countries like it needs to be much more proactive in organizing debt relief. Also as the article states they simply can not adopt the lockdowns that Europe and the US have done. It simply will not work. More ventilators and PPE will not solve that problem.
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Brahima Sangafowa Coulibaly May 3, 2020

Very powerful and compelling piece, Prime Minister Abiy! COVID19 is a global public 'bad' that can only be combatted effectively with a coordinated global approach. Until every country is successful, success anywhere will be short-lived. The call for solidarity and for stepping up additionality in resources for developing countries is consistent with approaches adopted in many advanced economies where the orthodox policy rule book was, appropriately, thrown out. Incrementalism in response will only ensure that the human and economic cost far exceed what it can be with swift and decisive action, including strong support during the Global Health Pledging Conference.
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Paco Capilla Murillo May 2, 2020

I'm not expert about intitutions must move to defit this pandemic, but is also true that some logic and common sence I got, So this virus is extremly rapid and easy to spread and in a world nowdays we live is so conect and glovalize thats means perfect to virus spread, I think only solution is defit it in the entry world africa continent included, but soud america as well, so entery world.
Rich world or developed one whatever will not sleep confortable lack of alarm untill all the citizens get a vaccine or tratment aginst, other words the only solution is to be soludary those regions can't ger a solution.
In the next period of time pamdemics its will come, because history tell us and humans won't a exception.
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Andrés Velasco May 2, 2020

Advanced countries are spending 10% of GDP or more in their anti-crisis packages. Poor countries need to spend at least a fraction of that, but they simply do not have the resources. The gap between high- and low- income nations has never been so wide and so painful. After all the rhetoric about standing together against a common enemy, the world must stand put its money where its mouth is. The opportunity to do so is the Global Health Pledging Conference on May 4.
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Biniam Bedasso May 2, 2020

This pandemic has shown that epidemic preparedness is an indispensable global public good. Public goods require effective and sustainable financing mechanisms. Africa's call for debt relief and multilateral action should be viewed in this lens. However, it is equally important to ensure that any newly freed up fiscal space is effectively used to build emergency response capabilities and economic recovery efforts. Debt-to-health swaps could be a useful instrument to try and achieve that. Transparency is going to be key in managing the new flow of resources to dispel concerns about moral hazard.
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José Antonio Ocampo May 2, 2020

Prime Minister Ahmed places on a table an excellent agenda for the Global Health Pledging Conference that would take place on May 4th. As he argues, the agreements in the Conference should include, first of all, debt relief beyond what was agreed by the G-20 and including at least next year's payments. It should include also larger amounts of ODA and a larger grant element in new lending. A large emission of SDRs would also make a contribution to developing countries, and should include an agreement for developed countries to donate the SDRs they receive to support aid to developing countries. And, not least of all, it should include significant cooperation in the health area, including supporting the provision of ventilators, test kits and, when available, vaccines, to developing and, particularly, low-income countries. Avoiding monopolies and trade restrictions of these health inputs is essential.
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James K. Galbraith May 2, 2020

One can fully support Prime Minister Abiy's call for global solidarity and for an SDR issue, but let's realize that in this pandemic the United States has cut off funding for the World Health Organization, while in the early stages stricken Italy got more immediate aid from Cuba than from Germany. Under these conditions, it would be realistic for all African countries to suspend all debt payments until the end of the pandemic. There is no need to wait for approval, and those funds would be immediately available. African countries can then concentrate all internal resources and efforts on the public health mobilization required to defeat this pandemic, while still requesting and accepting material, technical and financial assistance from the rest of the world.
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Célestin Monga May 2, 2020

Great piece by PM Abiy. He rightly stresses the need for a comprehensive strategy to deal with the COVI19 crisis. An issuance of Special Drawing Rights to raise $1.5 trillion is a great proposal, provided that the rules for accessing the funds and for the distribution among countries are re-examined. The flow of funds needed to enable investment in health care and social safety nets should not be an ad hoc, short-term action to address the emergency. It should be complemented by a longer-term strategy to boost economic growth and make the continent a major contributor to global demand. African governments should become financially self-sustaining and not rely on global charity ad vitam aeternam.

Ethiopia has showed the world how the root causes of the continent’s financial and economic fragility could be addressed effectively. Beyond debt relief and foreign aid (which are necessary and often very helpful), the continent should attract foreign direct investment in labor-intensive industries that create decent employment, generate income and taxes, and help combat poverty. Africa’s often poor business environment is a problem but the use of carefully designed, well located, and well-managed industrial parks can help address the issues of poor infrastructure and weak governance.
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Jeremy Mark May 2, 2020

The health impact of the pandemic is only one part of the crisis now facing the developing world. The deep global recession it has brought on is undercutting 20 years of economic and social gains, especially in Africa. The Prime Minister’s call for extended debt relief, grant aid, new lending—ideally interest free—and the issuance of SDRs all must be essential elements of the policy response. The May 4th pledging conference can only be the beginning of a long-term effort by the advanced economies, including China.
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Arvind Subramanian May 2, 2020

The dissonance between responses at the national level (bold, large and unconditional) and international level (unambitious, ungenerous, and tied) is striking. The Pledging Conference is a critical opportunity to redress this through coordinated action on the health and economic fronts to help the poorer countries. All creditors (multilateral, bilateral, and private) must contribute which would benefit not just the poorest, indebted countries but--recognizing the inter-connected nature of the pandemic and its consequences--creditors themselves.
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kemal dervis May 2, 2020

The May 4th pledging conference is indeed hugely important and timely given the urgency faced by the less developed countries. Action now on many fronts is needed, ranging from providing direct help to the health sectors, to wider participation in debt relief, including by private creditors , and more concessional resources. The May 4th pledging should be the first step in a wide ranging plan to help poorer countries in a way that should not result in greater debt burdens for them. A large SDR issuance where the richer countries would donate their allocations to less developed countries would be an effective step in that direction. In addition to the moral imperative that should spur early action, whatever path the pandemic takes, as emphasized by Prime Minister Abiy Ahmed a comprehensive plan is needed, because no country will be protected unless it is overcome everywhere.
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Erik Berglof May 2, 2020

Great agenda setting article. Debt relief could finance investments in health, but here is the big ‘if’. Commercial creditors and China account for over half of Africa’s debt servicing - but are not delivering on the G20 commitment. The 4 May meeting is the opportunity to act, for Africa and for the global effort to contain Covid-19
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Paola Subacchi May 2, 2020

The pandemic is deepening inequality within countries and among countries. Without a vaccine measures to mitigate the disease are more effective for those who can isolate themselves without jeopardising their livelihood. But health is a human right and not a privilege, and much more needs to be done to support the most vulnerable communities and countries. International action is needed in support of the Global Health Pledging Conference. Debt relief, grants and loans are needed to help poor countries fighting the disease. Developed countries should not ignore this call for help. And even if they don't feel the moral imperative to act, they should do it for self-preservation.
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Jayati Ghosh May 2, 2020

This is so important! Developed countries are spending trillions to revive their own economies and undertake measures to manage the pandemic. If even a small fraction of these amounts is set aside for international solidarity - which is also crucial to prevent a recurrence of the spread of the virus - it would fund the most important measures: debt relief through cancellation of significant debts; more resources for health spending in poor countries. A big SDR allocation is costless and essential - there's really no excuse for not doing it immediately. We need citizens in the rich countries to start demanding that their own governments take up these very sensible proposals.
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Un compromiso con África

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