Former Deputy Finance Minister Mcebisi Jonas says a global stimulus economic recovery plan must be drafted in order for the global economy and developing countries to recover from the impact of the coronavirus (COVID-19) pandemic.
He said this while delivering the online 11th Annual Ahmed Kathrada Lecture under the theme ‘Hope After State Capture – Towards An Agenda for Change.’
Economies around the globe, and especially on the African continent, have been severely impacted by the pandemic which saw the implementation of nationwide shutdowns.
Jonas has also called for the establishment of a new global debt authority.
“We need a global debt deal for the establishment of a new global debt authority, independent of creditors and debtors interest focused on assisting developing countries with and for example sovereign debt restructuring. Dealing with debt is a small but necessary part of the global fix.”
He says, “We also need a global economic stimulus and rescue plan directed mostly towards developing countries, such a global stimulus could direct global liquidity currently pooled in tax havens, for example, to create technology, digitization, and health infrastructure in the developing world and Africa in particular.”
11th Ahmed Kathrada Foundation Annual Lecture:
Meanwhile, Mcebisi Jonas says US presidential-elect Joe Biden’s victory will enhance South Africa’s path to economic recovery from the impact of the coronavirus pandemic.
Jonas also says Biden will undo the damage done by Donald Trump – including returning the US to the Paris Agreement on Climate Change.
“The COVID-19 denialism we have witnessed in some parts of the world is not assisting. A Biden victory will go some way towards restoring trade relations. We really need a sustained uptake of Chinese demand for commodities. SA remains dependent on commodities exports as a core source of growth. So sustained Chinese growth is so crucial for South Africa’s economy and the world economy. The world is pivoting toward the necessity of climate change solutions with a new impetus to give substance and resourcing for a global climate change deal. Biden has already promised that the US will rejoin the climate change agreement within days of his victory.”
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