{"id":18376,"date":"2022-04-13T11:03:31","date_gmt":"2022-04-13T11:03:31","guid":{"rendered":"https:\/\/www.withinnigeria.com\/broadnews\/?p=18376"},"modified":"2022-04-13T11:03:31","modified_gmt":"2022-04-13T11:03:31","slug":"ukraine-war-could-increase-shocks-for-developing-countries-un-warns","status":"publish","type":"post","link":"https:\/\/www.withinnigeria.com\/broadnews\/2022\/04\/13\/ukraine-war-could-increase-shocks-for-developing-countries-un-warns\/","title":{"rendered":"Ukraine war could increase shocks for developing countries, UN warns"},"content":{"rendered":"
\n

\u00a0UN on Tuesday warned that the fallout from the war in Ukraine could dramatically worsen the economic outlook for developing countries already grappling with debt financing related to the COVID-19 pandemic.<\/span><\/h1>\n<\/header>\n
\n

UN, in a report published on Tuesday, stated that while rich nations were able to support their pandemic recovery with record sums borrowed at ultra-low interest rates, the poorest countries spent billions servicing debt, thus preventing them from investing in sustainable development<\/a>.<\/p>\n

COVID-19 pushed 77 million more people into extreme poverty in 2021 while many economies remained below pre-2019 levels, according to the\u201d\u202fFinancing for Sustainable Development Report: Bridging the Finance Divide.\u201d report.<\/p>\n

Furthermore, it is estimated that one in five developing countries will not see their Gross Domestic Product (GDP) return to 2019 levels by the end of 2023, even before absorbing the impacts of the Ukraine<\/a> conflict, which is already affecting food, energy, and finance across the globe.<\/p>\n

The report was produced by the UN Department of Economic and Social Affairs (DESA) together with more than 60 international agencies, including within the UN system, and international financial institutions<\/a>.<\/p>\n

UN Deputy Secretary-General Amina Mohammed described the findings as \u201calarming\u201d, given that the world is at the halfway mark for financing the Sustainable Development Goals (SDGs).<\/p>\n

\u201cThere is no excuse for inaction at this defining moment of collective responsibility, to ensure hundreds of millions of people are lifted out of hunger and poverty<\/a>.<\/p>\n

\u201cWe must invest in access for decent and green jobs, social protection, healthcare and education leaving no one behind,\u201d\u202fshe said.<\/p>\n

The report reveals\u202fthat on average, the poorest developing countries pay around 14 per cent of revenue for interest on their debt, while the figure is 3.5 per cent for richer nations<\/a>.<\/p>\n

The pandemic forced governments to cut budgets for education, infrastructure and other capital spending.<\/p>\n

Fallouts from the war in Ukraine \u2013 such as higher energy and commodity prices, as well as renewed supply chain disruptions \u2013 will only exacerbate these challenges and spark new ones.<\/p>\n

The war is also likely to result in further increases to debt distress and increased hunger, further widening \u201cpandemic recovery gaps\u201d that existed before the conflict.<\/p>\n

Liu Zhenmin, the DESA chief, pointed to a potential silver lining for the way forward.<\/p>\n

\u201cThe developed world proved in the last two years that millions can be lifted out of poverty by the right kind of investment \u2013 in resilient and clean infrastructure, social protection or\u202fpublic services.<\/p>\n

\u201cThe international community must build on that progress, and ensure developing countries can invest at similar levels, while reducing inequality and securing a sustainable energy transition,\u201d he said.<\/p>\n

The past year was also marked by some advances on poverty reduction, social protection and investment in sustainable development, driven by actions in develop countries and some large developing nations, including some 17 trillion dollars in COVID-19<\/a> emergency spending.<\/p>\n

Additionally,\u202fOfficial Development Assistance (ODA) reached 161.2 billion dollars in 2020,\u202fthe highest level ever.<\/p>\n

However, 13 governments also cut this support to developing countries, and\u202fthe record sum is still insufficient to meet the vast needs.<\/p>\n

The UN fears that increased spending on refugees in Europe, another fallout of the war in Ukraine, could lead to cuts in aid to the world\u2019s poorest countries.<\/p>\n

To bridge the \u201cgreat finance divide\u201d, the report calls for countries to urgently address financing gaps and rising debt risks.<\/p>\n

This can occur through several measures, such as speeding up debt relief and expanding eligibility to highly indebted middle-income countries.<\/p>\n

\u201cIt would be a tragedy if donors increased their military expenditure at the expense of Official Development Assistance and climate action.<\/p>\n

\u201cIt would be a tragedy if developing countries continue to default, at the expense of investments in social services and climate resilience,\u201d\u202fMohammed said.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

\u00a0UN on Tuesday warned that the fallout from the war in Ukraine could dramatically worsen the economic outlook for developing countries already grappling with debt financing related to the COVID-19 pandemic. 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