The world is facing an unprecedented crisis. As Covid-19 spreads across the globe it threatens to disproportionately hit developing countries.

On 16 April 2020, the Organisation for Economic Co-operation and Development (OECD) released the preliminary statistics on Official Development Assistance (ODA) for 2019.

“Climate disruption is approaching a point of no return [...] We must act decisively to protect our planet from both the coronavirus and the existential threat of climate disruption.”

BBC News 

This second part of our two-part blog series provides an assessment of the G20 Debt Service Suspension Initiative announced last week. Part I analyses the impact of the proposal on fiscal responses to Covid-19. Part II places the initiative in the context of the broader economic costs of the crisis for developing countries.

This blog series of two parts will provide an assessment of the G20 debt service suspension initiative announced last week. Part I analyses the impact of the proposal on fiscal responses to Covid-19. Part II places the initiative in the context of the broader economic costs of the crisis for developing countries. 

As the world grapples with responding to the Covid-19 pandemic, this blog explores the key issues for countries in the global south.

On 13 April, the IMF announced an initiative to provide debt relief for a selected group of 25 countries. 

El costo humano y económico de la crisis causada por COVID-19 es un claro recordatorio de la fragilidad de nuestra sociedad globalizada.

The IMF and WB are calling on the G20 to support debt relief for impoverished countries in the face of the Covid-19 outbreak. But the institutions must break with the past to ensure debt relief fulfils its purpose.

This is a guest blog on behalf of the Arab NGO Network for Development (ANND) by Dr Hassan Sherry, Adjunct Lecturer, Department of Economics, Lebanese American University