In the recent G20 meeting, where representatives of both developed and developing economies were present, it was indicated that most of the leaders are against the withdrawal of assistance provided to the hard-hit countries in order to boost the economy by terming it premature. After the end of the meeting, the leaders of different developed and developing nations issued a declaration that stated that they are committed to working together to both monitor and then, further then address the challenges that these economies are facing to bring back economic stability.
In 2021, the global economy is working pretty steadily due to the steady rollout of vacancies and different financial policies and support by the government like Kerala State Lottery, a type of Lottery Sambad organized in India. Even though the rollout of vaccines have improved the economic situation of many countries, the recovery from the same has varied results across and within the countries. This can be cited to uneven vaccination roll-out and the introduction of new vaccines. This in turn has cost disruption in the supply chains of many countries. In addition to that, issues such as the pandemic itself, health infrastructure, economic cooperation and innovation were discussed.
The negative spillover is said to be prevented by ensuring that the support measures for the affected countries are still supported to preserve both fiscal sustainability and financial stability.
Digital Financial Inclusion To Be Enhanced
According to the declaration of G20, a commitment to enhancing digital financial inclusion was also reaffirmed. The digital inclusion would try to include both the vulnerable and unreserved segments of the country and this will mainly focus on micro, small and medium-sized enterprises. This would be further a step towards extending Global Partnership for Financial Inclusion. This will result in the implementation of the G20 2020 Financial Inclusion Action Plan.
How Financial Stability Is Planned For The Economy?
For ensuring financial stability in the Covid-hit pandemic, open, fair, sustainable and equitable trade that is nondiscriminatory and further includes the multilateral trade system. Implementing these suggestions will help in restoring economic growth and further will help in creating new jobs and will improve the productivity of the industry and promote sustainable development. These steps will hopefully further strengthen the core of the World Trade Organization too.
How Effectively Has G20 Tackled The Covid Hit Economy?
Even though the G20 is seen as a fruitful meeting, one might wonder whether G20 has done enough for both the inclusive and sustainable growth of the poor countries to get back to the pre-covid pandemic. Previously, G20 committed to ensuring that vaccines are accessible for the entire globe but it has failed to avoid big discrepancies in the vaccination rates of different countries. For instance, by September 2021, 58% of the total population of high-income countries were almost vaccinated and 36% of the population of the emerging economies were vaccinated but on the other hand, only 4% of the population of the low-income countries were vaccinated. The G20 platform should have a serious discussion on the health crisis that still exists in the poor countries of the world to ensure equity.
World Economy At A Glance
Strong economic recovery is seen in the advanced economies and many such countries are expected to see a peak in 2022. The circumstances are grim both for emerging markets and low-income countries. Only the developed countries managed to stick to the growth path that was predicted while other countries are far behind the growth plan. Reports from various sources have indicated that the economic recovery is not consistent across the globe. It is time to ensure equity persists around the globe.
Previously, it was expected that the emerging markets would be worst affected but surprisingly, they performed far better than expected and most of these countries are on their way to economic recovery. Also, the low-income countries are performing worse than those affected in terms of economic recovery. Further, it is now being stated that the full impact of the pandemic is yet not visible in the low-income countries yet and the effect of the pandemic will be felt completely by next year which is scary. The G20 that is supposed to support these countries is facing a challenge to implement even the funds like Special Drawing Rights to the low-income countries.
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