Covid-19

How COVID-19 is affecting Egypt’s migrants and refugees

Development Matters Africa, Covid-19, Migration , , , , ,

By the Centre for Migration and Refugee Studies (CMRS), the American University in Cairo (AUC)

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.
This blog is also a part of a thread looking more specifically at the impacts of and responses to the COVID-19 crisis on migration and developing countries.

Egypt-covid-19Egypt has one of the highest numbers of cases of COVID-19 in the African continent and as of August 5th, reported 94,875 cases, 4,930 deaths, and 47,182 recoveries. To curb the spread of the virus, borders and entry and exit pathways quickly closed in March, as international airports shut down to most air traffic, as did the land border crossing with Sudan. Since then Cairo International airport has re-opened as of July 1st. Egypt is a country of 100 million people with around 259,900 refugees and asylum-seekers officially registered with the United Nations High Commissioner for Refugees (UNHCR). It also hosts an unspecified large number of unregistered asylum-seekers and refugees. Many of these refugees see Egypt as a transit country until they have the means to make an onward journey or to be resettled in the EU, US, Australia, or Canada. However, many of them end up staying in Egypt for years, contributing to the local economy. One impact of COVID-19 is that many of those waiting to be resettled, have now been left in limbo in their country of asylum. While the International Organisation for Migration (IOM) and UNHCR recently announced the re-opening of international resettlement, many travel restrictions remain in place.

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Why quality assurance infrastructure matters to fight COVID-19 in developing countries?

Development Matters Covid-19 , ,

By Karl-Christian Göthner, Consultant, Physikalisch-Technische Bundesanstalt PTB, Germany

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.

Quality-Assurance-Infrastructure-COVID-19The COVID-19 pandemic demonstrates that health systems in many countries – developed and developing – were not prepared for such a crisis. Since 2005, several organisations have warned about the consequences of pandemics, issuing recommendations to prepare for critical health situations (WHO 2005, World Economic Forum 2006). However, in many countries few of these recommendations were followed. In September 2019, before the outbreak in China, a study by the Johns Hopkins Centre for Health Security stated that in many countries a lot remained to be done to improve preparedness for pandemics. When the COVID-19 pandemic appeared, most countries had to improvise, with the threat that it would overwhelm their health systems, depending on the timing and extent of their measures and the state of their national health systems. National trade restrictions, interrupting supply chains and impeding medical and protective equipment exports, have also exacerbated the situation. Continue reading →

Can COVID-19 revive philanthropy’s risk appetite?

Development Matters Covid-19 ,

 By Clare Woodcraft, Executive Director, Centre for Strategic Philanthropy, Cambridge Judge Business School

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.

Covid-19-philanthropyPhilanthropic capital is risk capital – an attribute often overlooked amidst the race to secure measurable positive outcomes to report back to donors and boards. Philanthropy has always accepted investing for zero financial return and with the advent of Venture Philanthropy that mimics the principles of Venture Capital, can readily embrace and learn from failure. Indeed, perhaps the most powerful proposition of philanthropy is this ability to focus primarily on social impact rather than financial gain. In theory, this could drive innovation, radically new ways of thinking and experimental ways of finding new solutions to old problems. Unfortunately, this is rarely the case.

The OECD’s “Private Philanthropy for Development” 2018 report notes that larger foundations working in development actually favour investing in stable, middle-income economies through large, established partners rather than in riskier environments with untested actors. Only a few foundations provide unrestricted funding that might encourage trial and error. And long-term commitments – those of five or more years – are still scarce. Eric Stowe reiterates this point arguing in the Stanford Review that ambitious systemic approaches are rare: “Most non-profits have little appetite for risk. Small, one-off initiatives, isolated pilot projects…are the norm…[and]…rarely ever go to scale.” Continue reading →

Mental health and COVID-19 in developing countries

Development Matters Covid-19 ,

By Anna D. Bartuska, Programme Coordinator, Community Psychiatry PRIDE, Massachusetts General Hospital and Dr. Luana Marques, Associate Professor, Department of Psychiatry, Harvard Medical School, Clinical Psychologist, Massachusetts General Hospital, Director, Community Psychiatry PRIDE

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.

covid-19-mental-healthPrior to the COVID-19 pandemic, there was a mental health crisis in many areas of the world. In 2017, Our World in Data reported that 970.81 million people had a mental health or substance use disorder. People living with mental health conditions have a 20 year reduction in life expectancy—two times greater than the estimated years lost from cigarette smoking. Despite the overwhelming global need for mental health services, up to 85% of individuals with mental health conditions in developing countries do not receive care due to lack of resources and investments. Unmet mental health needs bear a significant economic burden. The Lancet Commission on global mental health and sustainable development reports that unaddressed mental health conditions will cost the global economy US$16 trillion between 2010 and 2030. Continue reading →

Resetting the state for the post-COVID digital age

Development Matters Covid-19 , , ,

By Carlos Santiso, Director for Digital Innovation in Government of the Development Bank of Latin America and Member of the Global Future Council on Transparency and Anticorruption of the World Economic Forum

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.

glob-digital-colorsIn Brazil and elsewhere, the coronavirus crisis is accelerating the digital transformation of governments and govtech start-ups are becoming unexpected allies in the race to digital resilience.

Press reset and fast forward

The COVID-19 crisis is putting our global digital resilience to the test. It has revealed the importance of a country’s digital infrastructure as the backbone of the economy, not just as an enabler of the tech economy. Digitally advanced governments, such as Estonia, have been able to put their entire bureaucracies in remote mode in a matter of days, without major disruption. And some early evidence even suggests that their productivity increased during lockdown.

With the crisis, the costs of not going digital have largely surpassed the risks of doing so. Countries and cities lagging behind have realised the necessity to boost their digital resilience and accelerate their digital transformation. Spain, for example, adopted an ambitious plan to inject 70 billion euro into in its digital transformation over the next five years, with a Digital Spain 2025 agenda comprising 10 priorities and 48 measures. In the case of Brazil, the country was already taking steps towards the digital transformation of its public sector before the COVID-19 crisis hit. The crisis is accelerating this transformation.  Continue reading →

Exchange of tax information: a butterfly effect on domestic resource mobilisation

Development Matters Covid-19 ,

By Zayda Manatta, Head of the Secretariat of the Global Forum on Transparency and Exchange of Information for Tax Purposes

shutterstock_1685161738One small change can make a big difference in the fight against illicit financial flows.

Illicit financial flows (IFFs) deprive developing countries and regions of much-needed resources to finance and achieve their development agendas (e.g. the African Union’s Agenda 2063) and the global Sustainable Development Goals. They prevent countries from raising legitimate revenues essential for financing basic services such as social, educational and healthcare systems, and spurring economic development.

The ongoing COVID-19 pandemic has underlined how vital it is for countries to have well-financed medical infrastructure and efficient healthcare systems. The economic crisis resulting from the health crisis is undermining public finances the world over. While preserving a business climate favourable to economic recovery, long-term post-crisis strategies will likely have to encompass increased domestic revenues. Improving domestic resource mobilisation and advancing the fight against illicit financial flows needs to be at the forefront of developing countries’ political agendas. Continue reading →

Adapting to the new normal: the economic impact of COVID-19 in Central America

Development Matters Covid-19, Latin America and the Caribbean , , ,

By Miguel Angel Medina Fonseca, Economist at Chief Economist Office, Central American Bank for Economic Integration

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.

Eve Orea-shutterstock_1716207883
Photo: Eve Orea / Shutterstock

The COVID-19 pandemic is causing one of the largest economic recessions in the world’s history. In Central America, the Central American Bank for Economic Integration foresees a worst case scenario where the region’s GDP will contract by 4.9%, and public debt will increase by at least 7.6 percentage points of GDP.

The COVID-19 pandemic has prompted most governments around the globe to take preventive containment and mitigation measures, often implemented under state of emergency or similar clauses. In Central America, most policies have focused on saving people’s lives and reducing the socio-economic impact of the pandemic. Some measures stand out:
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Building a Resilient Future for Asia after COVID-19: How can ADB help?

Development Matters Asia, Covid-19, Undefined , ,

By Yasuyuki Sawada, Chief Economist and Director General, Economic Research and Regional Cooperation Department, Asian Development Bank, Cyn-Young Park, Director for Regional Cooperation and Integration, Economic Research and Regional Cooperation Department, Asian Development Bank, Rolando Avendano, Economist, Economic Research and Regional Cooperation Department, Asian Development Bank

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.

ADB-image

The latest estimates of the COVID-19 impact paint a grim picture of severe economic and job losses for developing Asia. ADB’s latest study estimates that the pandemic could cost the region from 6.2% to 9.3% in lost regional GDP, depending on whether it entails a 3-month or a 6-month containment scenario. This effect accounts for 30% of the expected overall decline in global output. The region is also expected to take the brunt of employment losses: the study projects losses from 6.0% (109 million) to 9.2% (167 million) of total employment, representing 70% of global employment losses. The shock is estimated to be seven times higher than during the global financial crisis.

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How COVID-19 is changing the opportunities for oil and gas-led growth

Development Matters Climate change, Covid-19, Natural Resources , , , , ,

Building-better-covid19-banner

By Glada Lahn and Siân Bradley, Senior Research Fellows, Energy, Environment and Resources 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.

shutterstock_680622253For oil and gas exporters, COVID-19 has caused a downturn like no other. From early 2020, lockdowns sent global energy demand plummeting by over a quarter. Combined with the Saudi-Russia price war, oil prices hit their lowest levels in over two decades, down to less than $20 a barrel in April. Without strategic reserve filling, the collapse would have been even steeper. As lockdowns eased and June’s OPEC-plus agreement to cut production boosted oil prices (around $40/b in June), producer countries could be forgiven for hoping that the worst is over. However, as the pandemic hit, the fossil fuel market was already facing a grim prognosis.

From boom and bust to… bust

Five years ago, Chatham House began exploring what decarbonisation might mean for extractives-led development. To achieve the Paris Agreement’s commitment to limiting global warming to well below 2°C and as close as possible to 1.5°C, all credible pathways will require a radical reduction in fossil fuel use. With 76 per cent of all greenhouse gas emissions (GHGs) and close to 90% of CO2 emissions coming from the burning of coal, oil and gas, the implications for these markets are profound. We are no longer talking about a cycle of boom and bust, but about structural decline. Continue reading →

Building tax systems in developing countries is vital to overcoming COVID-19 and achieving the SDGs

Development Matters Covid-19, Policy, SDGs , ,

By Ben Dickinson, Head of the Global Relations and Development Division, Centre for Tax Policy and Administration, OECD

T&D cover imageThe Sustainable Development Goals (SDGs) serve to stimulate action in areas of critical importance for humanity and the planet. With the COVID-19 pandemic affecting lives and livelihoods alike, the question is how will the SDGs be financed?

Domestic resources, primarily tax revenues, provide the vast majority of financing for development – money needed to build roads, schools, hospitals, social protection systems, and other critical services in developing countries. A new report released today, highlights the OECD’s work on building tax systems in developing countries, unlocking a range of tools, experience and expertise to meet the tax challenges of the 21st century. Continue reading →