CGD Policy Blogs
The COVID-19 pandemic has taken a significant toll on African economies. Despite the significant support for COVID-19 response provided by their bilateral and multilateral partners, African countries continue to face significant financing needs to protect lives and livelihood and bolster prospects for a stronger and more resilient economic recovery. In this light, the time for the international community to go big on supporting Africa’s pandemic crisis recovery is now.
How an Allocation of IMF SDRs To Africa Could Be Supported by A Multilateral Reallocation Initiative
A general SDR allocation has the potential to provide rapidly additional liquidity to African economies, thereby enhancing prospects for crisis mitigation and recovery.
In many African countries, the economic response to the crisis so far appears to have been broadly less consistent than the health response. For mitigation measures to be stronger and more effective, and for sustained recovery to take place, governments, central banks, and regional institutions will need to make tough policy choices, promote coordinated and collaborative policy implementation, and embrace bold and innovative reforms.
Beyond the Money: How IFIs and MDBs Can Better Support Pandemic Recovery in African Low-Income Countries
This blog proposes some critical steps—many of which are long overdue—that international financial institutions (IFIs) and multilateral development banks (MDBs) must take if their money is to work more effectively to support African countries recover from the pandemic’s fallout.
The COVID-19 pandemic is taking a huge economic toll in low-income countries. The IMF has provided prompt support to help mitigate it, but it could and should do much more. The political commitment of the international community will be essential for the institution to fulfill its potential.
As part of their efforts to contain the economic, social, and political fallout from the COVID-19 crisis, many African countries have announced large fiscal stimulus packages. But planned fiscal responses will need to be crafted with caution to be most effective.