“We face the spectre of a divided world and a lost decade for development,” United Nations Secretary-General António Guterres said.
The inability of developing nations to spend on post COVID-19 recovery and resilience has placed the world on the “the verge of a debt crisis”. He said that developing nations needed access to liquidity to allow them to sufficiently respond to the pandemic and invest in recovery.
128 million people have fallen into extreme poverty over the last year.
While the world’s rich nations have benefited from an unprecedented $18 trillion of emergency support measures, setting the stage for economic recovery post COVID-19, many developing nations could not invest in recovery and resilience. In fact many have spent 580 times less per capita on their COVID-19 response, in comparison to richer nations, because they do not have the money to do so. One third of emerging market economies where at high risk for fiscal crisis while six countries had already defaulted on loan payments. Guterres said the situation was even worse for least-developed and low-income countries.
"...that will put the 2030 Agenda for Sustainable Development and the Paris Agreement completely out of reach,” Guterres warned.