The Roscongress
Foundation continues to expand its knowledge base about the coronavirus, as
well as about global practices for fighting the infection and remedying the
financial effects of the pandemic.
The most up-to-date information about the coronavirus pandemic is accumulated in the special section of the ROSCONGRESS.ORG Information and Analytical System. Documents about economic and humanitarian response action in various countries are posted on the Anti-crisis Plan. Global Best Practices portal of the Roscongress Foundation. In particular, a review of the presentation by the UN Conference on Trade (UNCTAD) about the impact of the COVID—19 pandemic on the economy of developing countries, a review of economic measures adapted by countries in the context of the spreading COVID—19, a review of the UN Global Humanitarian Response Plan to the pandemic, key foreign studies on support of business and economy in the context of the pandemic, and other materials are posted in this section.
Early in April the Managing Director of the International Monetary Fund Kristalina Georgieva announced that the global economy has stopped due to the COVID—19 coronavirus pandemic. According to Georgieva, there has never been such a rise in the number of requests for emergency help in the history of the IMF: over 90 countries have applied for emergency support. The head of the IMF described the global economy recession as worse than the crisis of 2008-2009.
«The COVID-19 pandemic is truly a global crisis of a magnitude we have not seen in our lifetimes and it will impact our health, economies, and businesses in ways that are mutually reinforcing and potentially long lasting. There is a very clear rationale for the state to support families as well as businesses to mitigate the impact of the crisis on jobs and livelihoods and reduce its long-term consequences. Many countries, including Russia, have announced stimulus packages that contain measures to strengthen safety nets for people, ensure liquidity in the financial sector, and help businesses survive the downturn. These are all appropriate actions to take in the face of this crisis,» commented the World Bank Country Director for the Russian Federation Renaud Seligmann.
He also noted that in providing support, a
state should adhere to certain principles.
First, support to business should be as non-distortionary
as possible and focus on immediate liquidity challenges, reducing layoffs, and
avoiding bankruptcies. According to Seligmann, these measures should be
targeted and limited to businesses that were viable before the crisis, as
opposed to those that are best positioned to lobby for support.
Secondly, sequencing matters. Broad based
fiscal stimulus measures to prime the pump of demand in the economy will not be
effective until containment measures are eased, and people start returning to
work.
Finally, support measures should be
designed to reach all businesses including MSMEs (micro, small and medium
enterprises) and others that may not have access to the technologies and
institutions that most support programs depend on, believes Renaud Seligmann.
