Prospects for Chinese and Mexican South-South co-operation post-COVID-19

By Denghua Zhang, former diplomat and Research Fellow at the Australian National University and Carlos Cortés Zea, Coordinator of the AMEXCID-UNDP Co-operation Programme


This blog is part of a series on tackling COVID-19 in developing countries. Visit the OECD dedicated page to access the OECD’s data, analysis and recommendations on the health, economic, financial and societal impacts of COVID-19 worldwide.


The COVID-19 crisis is having profound impacts on the international political and economic order. It also provides an opportunity for stakeholders to reflect on past practices in each sector and learn from lessons to improve policies in the future. In this case, we examine the purposes, approaches and capacities of emerging providers (or Southern providers as some may call them) through the lens of China and Mexico—two major players in south-south co-operation (SSC).

Emerging providers, similar to traditional donors, provide aid to serve their own national interest. Motivations underpinning emerging providers’ efforts can vary significantly. The Chinese foreign aid programme is driven by a combination of factors including diplomatic competition with Taiwan, access to natural resources in recipient countries, image building as a responsible global power, and generating geopolitical support when its relationship with developed countries is strained. For example, China is currently taking a whole-of-government approach to conduct its COVID-19 diplomacy; an effort to improve its global image and garner support from developing countries in the face of growing pressure from developed countries over China’s handling of the crisis.  

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The potential of migration for development in Afghanistan

By Nassim Majidi, Founder and Director, Samuel Hall

A family in Sheberghan, Afghanistan. Photo: Mustafa Olgun / Shutterstock.com

Countries in Asia are at different stages of harnessing the potential of migration for development. At one end, there is the case of the Philippines, where international migration is central to domestic social and economic development. At the other end of the spectrum is Afghanistan, where much of the conversation has narrowly focused on forced migration, return and reintegration, missing out on the potential of migration for development. Yet the migration and development dialogue in Afghanistan should be a priority, at a time when COVID-19 is leading the country into an economic recession. Experts have so far provided informal estimates that up to 80% of the Afghan population may end up under the poverty line due to COVID-19, with dire consequences for food security and overall wellbeing.

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La restructuration de la dette en Afrique doit impliquer ses nouveaux créanciers

Par Arthur Minsat, Centre de développement de l’OCDE et Yeo Dossina, Commission de l’Union africaine[i]


Ce blog aborde les impacts de la crise du COVID-19 en matière de flux de capitaux et de dette dans les pays en voie de développement.

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La récession mondiale causée par la pandémie COVID-19 appelle à l’annulation ou à la restructuration de la dette des pays africains. La crise a déclenché un double choc fiscal, avec une hausse des dépenses publiques et une baisse des recettes. Il est essentiel de rétablir la capacité d’emprunt des pays africains pour lutter contre la perte de leur marge de manœuvre budgétaire.

Avant le choc, l’Afrique avait déjà montré des signes de vulnérabilité. Bien que le continent africain se soit illustré par le deuxième taux de croissance économique le plus élevé au monde, avec 4,6 % en moyenne entre 2000 et 2018, sa croissance avait commencé à ralentir, passant d’un pic de 6,8 % en 2012 à 3,2 % en 2019. En 2020, la croissance de l’Afrique devrait se situer entre -2,1 % et -4,9 %, ce qui réduira considérablement la marge de manœuvre budgétaire de tous les pays. Dans l’ensemble, le financement du développement a diminué depuis 2010 en pourcentage par habitant. Tant pour les recettes intérieures que pour les flux financiers extérieurs, le montant du financement par habitant a diminué de 18 % et de 5 % respectivement tout au long de la période 2010-2018. Une économie mondiale moins performante et une croissance démographique toujours élevée dans la plupart des pays africains sont à l’origine de cette tendance à la baisse.

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Une taxe climat européenne pourrait bénéficier aux pays exportateurs de pétrole

Par Håvard Halland, Economiste au Centre de développement de l’OCDE


Ce blog fait partie d’une série sur la lutte contre le COVID-19 dans les pays en voie de développement. Visitez la page dédiée de l’OCDE pour accéder aux données, analyses et recommandations de l’OCDE sur les impacts sanitaires, économiques, financiers et sociétaux de COVID-19 dans le monde.


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Pour relancer nos économies d’une manière durable dans le sillage de la crise due au Covid-19, l’instauration d’une tarification effective du carbone à l’échelle mondiale reste plus importante que jamais. Cependant, tant que les Etats ne parviendront pas à s’entendre sur la gravité des risques induits par le changement climatique, la mise en place d’un système mondial de taxation des gaz à effet de serre restera une perspective lointaine.

Le mécanisme d’« ajustement carbone aux frontières » envisagé par l’Union européenne (UE) pourrait toutefois être un premier pas vers une réallocation des investissements internationaux dans le sens souhaité. Ambitieux, les nouveaux objectifs climatiques de l’UE exigeront des réductions des émissions non seulement dans le secteur de l’énergie, mais aussi dans les secteurs à forte intensité énergétique comme les industries lourdes, la métallurgie, la pétrochimie, le ciment, les engrais.

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EU climate tax could benefit oil exporters

By Håvard Halland, Senior Economist at the OECD Development Centre


This blog is part of a series on tackling COVID-19 in developing countries. Visit the OECD dedicated page to access the OECD’s data, analysis and recommendations on the health, economic, financial and societal impacts of COVID-19 worldwide.


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In energy-intensive sectors, a carbon border tax could shift the geography of investment.

For a green coronavirus recovery, an effective global price on carbon remains as important as ever before. However, until governments can agree on the severity of the risk posed by climate change, a global tax on greenhouse gas emissions seems a remote prospect. Nonetheless, the “carbon border adjustment mechanism” that the EU is considering could have similar effects on capital allocation – albeit on a smaller scale.

The EU’s ambitious new climate goals will require emissions reductions not only in the energy sector, but also in energy-intensive sectors such as heavy industries, metals, petrochemicals, cement, and fertilizer. To ensure a level playing field between EU companies and foreign firms not subject to EU emissions targets, the EU may implement a border tax on carbon-intensive imports. The combination of high carbon taxes within the EU and a carbon border tax would present energy-intensive industries with a new set of locational choices.

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COVID-19: A game changer for the Global South and international co-operation?

By Debapriya Bhattacharya, Chair, Southern Voice and Distinguished Fellow, Centre for Policy Dialogue (CPD), and Sarah Sabin Khan, Senior Research Associate, CPD


This blog is part of a series on tackling COVID-19 in developing countries. Visit the OECD dedicated page to access the OECD’s data, analysis and recommendations on the health, economic, financial and societal impacts of COVID-19 worldwide.


In a short but seemingly never-ending time span, the COVID-19 crisis has propelled governments into the dilemma of balancing the response to immediate health, economic and social fallouts, with long-term recovery. Some remain vigorously engaged in saving lives. Others are seesawing between loosening restrictions and enforcing new ones to prevent a second wave. Countries from the Global South are among the worst affected by the pandemic. This is due to both their weak pre-crisis conditions as well as their disadvantaged position in global governance. There is a broad consensus that things will not and cannot go back to the way they were before. A “new normal” will emerge in terms of how governments, producers, businesses, consumers and other economic agents conduct themselves. This will be also true for global governance structures and the conventionally dialectical relationship between the North and the South.  

In this context, pessimistic views and optimistic outlooks on the post-COVID world confront one another. 

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COVID-19 and the human development crisis: what have we learnt?

By Pedro Conceição, Director of the Human Development Report Office and lead author of the Human Development Report and Mario Pezzini, former Director of the OECD Development Centre and special adviser to the OECD Secretary-General on development


This blog is part of a series on tackling COVID-19 in developing countries. Visit the OECD dedicated page to access the OECD’s data, analysis and recommendations on the health, economic, financial and societal impacts of COVID-19 worldwide.


To say COVID-19 is unprecedented is no cliché. Its simultaneous impact on multiple development areas – education, health and the economy – sets it apart. As does its geographic reach: the pandemic, and its spillover, have touched every country.

Of course, the world has seen many crises over the past 30 years, including health crises from HIV/AIDS to Ebola, and economic crises such as the Global Financial Crisis of 2007-09. Each has hit human development, devastating the lives of millions. But overall the world has still made development gains year on year. What distinguishes COVID-19 is the triple hit to health, income and education, fundamental building blocks of human development. And as a result the global human development index is on course to decline this year for the first time since the concept was introduced in 1990 – something that can still be avoided or at least mitigated with strong policy responses.

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