The previous article outlined the potential impact of economies on the spread of the virus in the world. The impact will be so great that, according to the World Bank, it will be far worse than the 2008 recession. In such a case, the support of international organizations is essential for countries. It is the international organizations and economic actors who determine the state of the world once the world is shut down.
Developing countries are at risk because of the limited supply of medical supplies. However, the World Trade Center says that any country has the freedom to make decisions for the safety of its citizens and that this is a global crisis and must be tackled.
The World Bank
Similarly, some countries levy taxes on their health services, as well as a substantial share of the national income. In a developing country it is about 8% and in a low developed country it is about 11%.
Therefore, to address these issues, the World Bank presented the following proposals at the recently concluded G20 Summit.
• No restrictions on new exports for core products
• To reduce or suspend tariffs on medical products
• Removal of borders for essential products
• Continuation of capital and trade finance position for SMEs
According to the World Bank, they have already responded to developing countries and have spent $ 14 billion on emergency operations in 60 countries.
The World Bank urges lenders in developing countries to provide relief to those countries.
The World Bank, which is also concerned about future economic and social problems, plans to invest $ 160 billion in 15 months.
It involves the following.
• Provide protection to the poor and vulnerable
• Help customers obtain medical supplies and equipment at no cost to minimize supply chain problems
• Assist business owners and employees through IFC merchandise and credit lines
• Strengthening economic resilience and recovery rate
International Monetary Fund
According to the International Monetary Fund, global policy makers face stressful conditions in the face of the 2008 economic crisis
• Strengthen the regulatory framework
• Significant increase in benchmark capital, liquidity quality and quantity
• Buffer retainers that can be used in stressful situations
Such actions have been taken and nowadays these decisions are very helpful.
The International Monetary Fund points out that they have to be careful in this instance too.
Here are the tips.
• No change in rules
This means that the mother has initiated the operation while continuing to operate, giving her time to pay off the debt
• Provide credit relief through the use of buffers
• Present without loss
• Strengthen communication
• Coordinate cross-border banking
Taking the best of all parties to the best possible situation can prevent a catastrophe.
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