An Economic Tsunami is about to hit the poorest countries: Inaction by the G20 will make it worse

Abstract

An economic tsunami is about to engulf the developing world and many poor countries are simply not prepared to deal with the economic, social, and political consequences. When daily life is disrupted by fuel and medicine shortages, power supply is turned off because every kilowatt hour sold costs more than consumers can afford to pay, and rising food bills consume much of meager household incomes, any spark can trigger a blaze of discontent. Sri Lanka is a visible example of how quickly economic crisis can lead to societal collapse. The G20 acted swiftly and decisively during the COVID crisis. Today, the poorest countries are confronting a challenge, which is bigger, more damaging and whose scarring potential is immense. The leaders know the remedies and have the authority to deploy them to demonstrate true solidarity with the poorest countries. They must make the meeting in Bali meaningful for all.