Act Now to Avoid Mutually Reinforcing Crises, Deputy Secretary-General Tells Event in International Solidarity in Face of COVID-Related Economic Recession

Following is the text of UN Deputy Secretary-General Amina J. Mohammed’s video message to the event “International Solidarity in the Face of the Economic Recession Caused by COVID-19:  Presentation of the Fund against COVID-19 Economics (FACE)”, held today:

Excellencies,

I commend Costa Rica and ECLAC [Economic Commission for Latin America and the Caribbean] for this initiative which amplifies our joint efforts for a stronger recovery.

Six months after COVID-19 was declared a pandemic, the unprecedented global emergency continues unabated and risks unravelling years of development gains.  What began as a health crisis with devastating economic impacts has become a humanitarian catastrophe.

Nearly 1 million people have died from the virus.  One hundred million people could be pushed into extreme poverty, and an additional 270 million people could face acute food shortages by the end of this year.

The measures taken by the international financial institutions, multilateral and regional development banks have helped, but far more must be done.  Many countries have been excluded from the emergency response.

This crisis has highlighted the limits of traditional income-based measures of vulnerability.  Many middle-income countries, small island developing States and tourism-dependent economies have fallen outside the scope of relief measures, but have proven particularly vulnerable to the detrimental health, social, and economic impacts of COVID-19.

This is why, since the beginning, the Secretary-General has been calling for a massive, coordinated, comprehensive multilateral response that amounts to at least 10 per cent of global gross domestic product (GDP).  In May, Canada, Jamaica and the Secretary-General convened a high-level e vent to explore concrete financing solutions.  In the four months since, six discussion groups have worked on an ambitious menu of policy options.

Next Tuesday, Heads of State and Government will come together to take stock and consider the path ahead.  We are pressing for them to make bold choices to secure our common future.

Even though some countries have controlled the virus and experienced a slight economic rebound in recent months, the impacts of the pandemic will be with us for years to come.  New and existing funding mechanisms and facilities to provide targeted financing to vulnerable countries will be crucial, particularly in developing countries that lack the fiscal space to finance robust responses.

We must act now to avoid mutually reinforcing crises.  I thank you for your leadership in helping the world turn the tide.  Thank you, and best wishes for this important event.

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