How the G20 can make the global recovery from Covid-19 more inclusive

Sherillyn Raga and Dirk Willem te Velde, 25 February 2021

The emerging picture of recovery from Covid-19 is that of inequality – in countries like Canada, each person has been allocated almost 5 sets of Covid-19 vaccines and $8,141 worth of government stimulus. In low-income countries (LICs) like Bangladesh, current vaccine orders only cover 14 in every 100 people, with announced fiscal stimulus equivalent to only $26 per capita The significantly higher level of public investment in sustainable green and digital sectors as part of Covid-19 recovery plans in advanced economies compared to LICs will further exacerbate divergent growth patterns.

This note discusses (1) the context of the poorest countries in terms of fiscal resources and access to vaccines; (2) the options for implementing fiscal measures that have higher multiplier effects in LIC contexts; and (3) the greater role for the G20 to promote a recovery that is inclusive of LICs.