Diverging Prospects, Differing Responses: Economic Prospects and Global Policy Collaboration in a Time of Crisis

Description

As the global COVID-19 pandemic progresses, it appears that the effects have not been felt evenly: Europe and the U.S. have been the hardest hit while developing Asia (ex-China) has escaped the worst effects. As a result, national policy responses have differed, as have plans for restarting locked-down economies. With low-income countries facing economic and financial hardships — in some cases even in the absence so far of serious coronavirus outbreaks — unprecedented debt standstills have been proposed for these countries. At the same time, the G20 and the Multilateral Financial Institutions have sought to forge a coherent multilateral policy response. As a result, we are entering a period of historic challenges for the institutions that form the current multilateral system as well as the most difficult economic and financial conditions in nearly a century. Key decisions loom all around in just the next few weeks.