Poor countries suffer from severe global development crisis: UN | Banking Issues

The COVID-19 crisis has caused global FDI to decline by a single phase, threatening development goals.

The crisis on COVID-19 has led to a global collapse (FDI), while inflation has halved by $ 1.5 trillion in 2019 to $ 1 trillion – by 2020, a new report from the United Nations Conference on Trade and Development (UNCTAD) has warned .

World Investment 2021 Report (PDF) found that the coronavirus epidemic has reversed by ensuring that developed and low-income countries have access to foreign exchange.

Such funding is critical to achieving the Sustainable Development Goals (SDGs), which the UN and member states’ targets will be achieved by 2030, especially for the poorest nations that are at risk of falling behind when rich allies leave the profession.

“This is of great concern, because global funding is crucial to the development of the world’s poorest regions,” UN Secretary-General Antonio Guterres said in the introduction of the report.

The report found that the decline in FDI was the worst economic crisis, falling by 58%. Travel to Europe dropped by 80 percent as the economy deteriorated due to coronavirus ban and closure. North America suffered 42 percent damage.

While FDI in developing economies declined slightly by 8% due to a strong return to Asia – China’s growth rate increased, by 6%, to $ 149bn – investment in new construction projects in developing countries was significantly affected.

The number of newly announced green projects fell by 42% and the number of global jobs is 14% in developing countries, according to UNCTAD.

In Africa, greenfield jobs, which are essential for the country’s development, fell by 62 percent. FDI travel to Africa dropped by 16% to $ 40bn. In developed countries, the planting of green trees dropped by 19 percent.

UNCTAD also found that FDI in Latin America and the Caribbean declined, by 45% to $ 88bn and moving towards economic transformation dropped by only 58% to $ 24bn, the sharpest drop in any region outside Europe.

A new global effort to raise funds to ensure that sustainable recovery is needed and that all countries are able to do better by 2030, UNCTAD has confirmed.

“But the issue is not about economic recovery, but about making a long-term recovery and tackling future challenges,” UNCTAD Secretary-General Isabelle Durant wrote in the introduction of the report.

The report also outlines some potential problems with the implementation of reimbursement plans and a framework for dealing with them.

“Our job today is to make progress differently,” added Durant. “This would not be possible without the establishment of foreign exchange as a means of promoting development, and ensuring that recovery is inclusive and beneficial to all countries.”