In short, developing countries – even as they act to save themselves – must shift far greater attention to fragile states and emerging markets, where the hit from the virus is likely to be far more devastating, destabilizing, and enduring, writes Fred Kempe.
If world leaders don't act in greater unity soon — and this week's virtual meeting of G20 leaders wasn't encouraging in that respect — the world could find COVID19's worst impacts in swarming slums, crowded refugee camps, unresolved conflict zones, and even among some of the largest emerging market economies, like Brazil, South Africa, and India.
If world leaders don't act in greater unity soon — and this week's virtual meeting of G20 leaders wasn't encouraging in that respect — the world could find COVID19's worst impacts in swarming slums, crowded refugee camps, unresolved conflict zones, and even among some of the largest emerging market economies, like Brazil, South Africa, and India.
"UN officials have now raised the alarm about COVID-19 infecting the population of Idlib ," says Crisis Group, "where a Russian-backed offensive by government forces has systematically target hospitals and other medical facilities and led to the displacement of over one million people in the last six months alone."
Yet instead of even the healthiest emerging markets enjoying support at this challenging moment, disinvestment has spread faster than the pandemic itself. Investors want the safer havens like U.S. government bonds, gold, or cash.that over the past two months a net $70 billion has left a group of two dozen leading emerging markets, including Brazil, China, India, and South Africa. That's in stark contrast to inflows into those same economies of $79 billion last year.
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