La tormenta perfecta: el COVID-19 en las economías emergentes
This chapter argues that developing countries will be harder hit by the pandemic than advanced economies. They must navigate a perfect storm formed by domestic restrictions on economic activity imposed by social distancing and an external front with collapsing exports, dwindling remittances, and tig...
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| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Institut de Hautes Études Internationales et du Développement
2020-08-01
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| Series: | Revue Internationale de Politique de Développement |
| Subjects: | |
| Online Access: | https://journals.openedition.org/poldev/3457 |
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| Summary: | This chapter argues that developing countries will be harder hit by the pandemic than advanced economies. They must navigate a perfect storm formed by domestic restrictions on economic activity imposed by social distancing and an external front with collapsing exports, dwindling remittances, and tightening international credit conditions. The restrictions on economic activity fall more heavily on these economies, which have large informal sectors and a smaller scope for home working. The deeper recession expected for emerging economies will hit hard their tax revenues at the same time they need to spend more for social insurance and health. The IMF could provide the necessary financial help these economies need, but not for long and at the risk of not being stabilise global sovereign debt markets as a lender of last resort. Given these challenges, it is vital that economists and epidemiologists work together on coordinated health and economic policy responses to COVID-19 designed for developing countries. |
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| ISSN: | 1663-9375 1663-9391 |