Is The Lockdown Putting African Economies on Brink of Failure?

There are only a few incidents that have impacted the world on a global scale in recent memory. The handful that do exist are beginning to pale in comparison to the current global pandemic. This has been evident in developed countries with overwhelmed health care systems. Now developed economies in the African continent are starting to show warning signs of complete economic collapse as their much less developed health care system buckled under the burden of pandemic patients.

Ongoing Support Activities

Providing support to the situation is difficult due to the way that many of the African country’s economies are organized. Most African countries share two features. They are export-driven and the lock downs have left them paralyzed irrespective of internal policy. There have been two major international organizations that have come out in support of these countries.

International Monetary Fund Starts Helping

So far the IMF has received communications from at least 20 African nations looking for emergency relief. There are at least 10 more that are looking to apply in the future most likely. So far the IMF has established relief operations with 2 and plans are in the works for how to address the nation’s currently in crisis.

Help Coming From UNECA

The U.N. Economic Commission for Africa, commonly referred to as UNECA is providing help for many African regions. It is composed of a council from UN member states that help to organize relief missions and ongoing improvement in Africa. The current crisis is expected to cost the region in excess of 10 billion dollars for health care alone. They are currently attempting to organize relief efforts among UN members.

Likely Long Term Effects

Though it is easy for people in the developed world to lose sight of how connected everything is, there would be a devastating wave of secondary and tertiary side effects around the world if the area does not receive the help that they need as there are many basic items necessary for day to day items that would either become unlikely or extremely expensive to obtain.

For more information visit the IMF or UNECA websites.

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