Secondly, he said, while $5 trillion has been mobilized, most of that money was by the developed world — including $2 trillion in the United States — to support their own economies from the consequences of the pandemic. It also cited an estimate by the U.N. trade and development organization UNCTAD of a 30-40 percent “downward pressure" on global foreign direct investment flows this year. Guterres announced the establishment of a COVID-19 Response and Recovery Fund to support efforts in low- and middle-income countries, with the aim of swiftly enabling governments to tackle the crisis and promote recovery. The secretary-general said developed countries must massively increase the resources available to the developing world by expanding the capacity of the IMF to issue special drawing rights, and enabling other international financial institutions to rapidly inject resources into countries that need them. “If not, the African continent will have enormous difficulties in facing this challenge.”

Source: International New York Times March 31, 2020 20:48 UTC