Over the past three months, the World Bank Group has mounted the fastest crisis response in its history. We are now financing emergency operations in over 100 countries – home to 70% of the global population.

In this virtual interview, David Malpass, President of the World Bank Group, discussed the path ahead for developing countries. What will a robust and resilient recovery look like? How can we promote economic growth, support the poorest, and sustain businesses and jobs?

The President of Cooperatives of the Americas indicated that, “This sector can offer many contributions, for example, inter-cooperation among savings and loan cooperatives that provide financing to farmers’ cooperatives and to individual small farmers to get ahead and to stay afloat in this complex climate. Consumer cooperatives can also assist farming cooperatives to place their products in the market”.

“The hardship of COVID-19 felt by migrants in the form of lost wages and employment – often without government safety nets – is a large part of this crisis in remittances. The decline also results from a host of issues caused by the coronavirus that impact the services migrants use to send money home – including the restrictions placed on remittance services providers and their agents. The loss of this crucial financing lifeline is devastating for both the migrant households and receiving countries,” said Judith Karl, Executive Secretary for UNCDF. “UNCDF, together with UNDP, is committed to supporting the Member State-led call to action and to ensuring that every measure is available to facilitate migrants in sending remittances home.”

IOM is able to provide vital assistance to these vulnerable returnees with support from the EU-IOM Joint Initiative for Migrant Protection and Reintegration financed by the European Union, in the framework of the Migrant Resource and Response Mechanism supported by the Ministry of Foreign Affairs of the Netherlands, the United States Department of State, and the Ministry for Europe and Foreign Affairs of France.

Dr. Mossi explained that, "This is the first part of a US$300 million financing, which will allow the country's entrepreneurs to face the difficult moments resulting from the coronavirus pandemic. In addition, it is a tool with which MSMEs can solve financial problems, avoiding personnel layoffs, while maintaining operations."

In essence, the banking union is an exercise in risk diversification, achieved by pooling banking risks and regulatory controls among euro area countries. The strategy involved three interrelated lines of action: strengthening the solvency of banks; enhancing their efficiency; and fostering area-wide diversification and integration of the banking industry.

As countries continue to scale up and adjust eligibility criteria of current support measures, there are concerns about how to reach those SMEs that have missed the boat and ensure the support actually goes to the businesses that need it the most. Concerning loans, the big elephant in the room remains how to manage future SME debt, not only to avoid the pre-mature closure of viable SMEs, but also since a further deterioration of SMEs’ financial situation could have systemic effects on the banking sectors as a whole. Although some countries have pledged unlimited support, it seems difficult to maintain the breadth of current support much longer without compromising the sustainability of public debt.

The pandemic has hit Saint Vincent and the Grenadines hard. Tourism receipts have dried up, as tourism arrivals have come to a complete halt. The economy is now projected to contract by 5.5 percent —7.8 percentage points below pre-COVID-19 projections. A drop in fiscal revenues, combined with additional direct health and social expenditures, will increase the fiscal deficit and financing needs. IMF support will help cover some of these needs and allow the government to ease the impact on the population.

Investment in transforming the transport sector could create millions of new jobs and help countries move to greener, healthier economies, says report from the International Labour Organization and the UN Economic Commission for Europe.

The study finds that 10 million additional jobs could be created worldwide - 2.9 million in the UNECE region - if 50 per cent of all vehicles manufactured were electric. In addition, almost 5 million new jobs could be created worldwide - 2.5 million in the UNECE region - if UNECE countries doubled investment in public transport.

While the pandemic arrived after it had already devastated Europe (and now the United States), everybody in the human rights field knew that health and social services in Latin America had been dismantled progressively, mostly via privatisation and the shrinking of public programmes and spending. Hence the pandemic will affect principally the vulnerable people who can’t access basic public services.

While a global pandemic has been a looming risk for decades, COVID-19 has come as a shock to society, health systems, economies and governments worldwide. In the midst of extraordinary challenges and uncertainty, and countless personal tragedies, leaders are under pressure to make decisions on managing the immediate impact of the pandemic and its consequences, decisions that will shape the state of the world for years to come. What might be the silver linings in the crisis and how might leaders use this moment to build a more prosperous, equitable and sustainable world?

Towards this end, IDB and AFD have exchanged on the modalities of the support to be brought to Latin American countries both in their immediate to rather short terms responses to COVID-19, and on the medium to long-term recovery plans. These could be developed further, leading to a potential joint-cooperation aligned with climate and SDGs objectives, key drivers of the IDB-AFD partnership.

The pandemic caused by COVID-19 has exposed the economic model’s structural problems and the failings of social protection systems and welfare schemes. Hence, a “new normality” is not the way forward; we must rethink the development model and consolidate the economic, social and environmental dimensions of sustainable development, leaving no one behind, Alicia Bárcena.

The Caribbean Development Bank (CDB) is making available emergency loans to seven Caribbean countries, in the first instance, to finance the response to the COVID-19 pandemic. Today, the Bank’s Board of Directors has approved a total of US$66.7 million for Antigua and Barbuda (US$13 million), Belize (US$15 million), Dominica (US$2.5 million), Grenada (US$5.9 million), Saint Lucia (US$10.8 million), St. Vincent and the Grenadines (US$11.3 million), and Suriname (US$8.2 million).

“The provision of support to the seven countries to respond to COVID-19 and keep critical government services and operations running is urgent to halt the economic decline and minimise social hardship, while giving focused attention to the most vulnerable people,” says CDB President Dr. Wm Warren Smith.

The COVID-19 crisis has put extraordinary pressure on employers and private sector businesses, to survive and continue to provide decent work. Deborah France Massin, Director of the ILO’s Bureau for Employers’ Activities, explains how they have been helping with services and tools, and ensuring that the views of enterprise are represented to decision-makers.

The decline in market-based inflation measures has accelerated markedly since the outbreak of COVID-19. Inflation-linked swap (ILS) rates are useful for deriving market-based measures of inflation expectations. In an inflation-linked swap contract, one participant pays a fixed rate cash flow on a notional principal amount while the other participant pays a floating rate that is linked to an inflation index. Thus, the euro 5y5y ILS rate measures current five-year inflation expectations five years ahead in time by taking a long position in a ten-year inflation-linked swap contract and a short position in a five-year contract. This measure reached an historic low on 23 March 2020 of 0.71%. Although market-based inflation measures have rebounded somewhat following efforts by central banks and governments to stem the economic downturn, with a current level of 0.9% the market-based inflation measure is still well below the ECB’s target for medium-term inflation of below, but close to 2% .

The World Bank Group today announced its emergency operations to fight COVID-19 (coronavirus) have reached 100 developing countries – home to 70% of the world’s population. Since March, the Bank Group has rapidly delivered record levels of support in order to help countries protect the poor and vulnerable, reinforce health systems, maintain the private sector, and bolster economic recovery. This assistance, the largest and fastest crisis response in the Bank Group’s history, marks a milestone in implementing the Bank Group’s pledge to make available $160 billion in grants and financial support over a 15-month period to help developing countries respond to the health, social and economic impacts of COVID-19 and the economic shutdown in advanced countries.

Promoting the employability and income opportunities of people working in the informal economy is highly critical for inclusive societies, and more so in times of crisis. Innovations to facilitate outreach, the recognition of prior learning or digital solutions are highly needed, requiring new financing models and partnerships with employers and workers’ organizations.

Prime Minister Dr the Hon. Keith Rowley announced further relaxation of COVID-19 restrictions at a media conference at the Diplomatic Center, St Anns.

Prime Minister Dr the Hon Keith Rowley said today Phase 2, initially scheduled to begin on May 24th, 2020 will now commence earlier due to favourable testing results.

Phase 2 will also include the reopening of :
* Auto repair/parts and tyre shops
* Laundry and dry cleaning services