The head of the International Monetary Fund (IMF) has urged countries with advanced semi-system to provide resources to low-income countries.
IMF has warned that if this is not done, there will be a ‘big deviation’ in global growth which will threaten stability and social unrest will increase in the coming years.
The Managing Director of the IMF, Kristalina Georgieva, has said that 50 per cent is in danger of lagging behind developing countries, raising concerns about stability and social unrest. In order to avoid big problems, it is important that rich countries and international institutions help more.
She has urged the heavily debt-ridden countries to implement a new system on loan as soon as possible and create an atmosphere for development and encourage it.
She told reporters through video conferencing, “Last year our focus was on lockdown. This year the economy is at risk of ‘a big disorientation’.” We estimate that developing countries, which have been almost stagnant in terms of income for decades, will face difficult situations this time.”
She said that the decline in the standard of living of developing countries will make it difficult to maintain stability and security in the rest of the world. India is among the developing countries with the largest population and the economy is derailed.
She said, “There is a danger of increasing social instability. You can call it a lost decade. “
Georgiwa said countries with advanced economies have spent 24 percent of their GDP in dealing with the epidemic, while countries with emerging economies have spent six percent and low-income countries have spent two percent.
Georgiwa said that due to lack of funds in poor countries, vaccination efforts have been irregular and they have faced many difficulties. Morocco is the only country in Africa where vaccines have been introduced to ordinary citizens. He expressed his concern about mortality in many African countries.
She said, “We should do everything possible to stop this dangerous deviation to our potential.”
She said that keeping in view the developing countries, the rich countries need to pay more attention to the economy, taking care of the digital and environment.
She said that by accelerating vaccination, the global economy can increase by $ 9 trillion by the year 2025. As a result, developing countries will get the benefit of 60 percent.
Georgiva said that she, along with the share holders of the IMF, is making efforts to provide funds to poor countries through their currency or special drawing rights (SDR).