Social inequalities, exacerbated by the new coronavirus pandemic, could lead to a breakdown in public confidence in their governments and an outbreak of social unrest, the International Monetary Fund warned in a report released yesterday.
The pandemic “exposed and exacerbated pre-existing income inequalities and access to basic services such as healthcare and vaccination“, Summed up the IMF in its report, which was prepared in view of its spring session.
The consequences may be lasting, especially for children and young people from poorer households.
In addition, accelerating the digital switchover due to the pandemic is making it increasingly difficult for low-skilled workers to find employment.
“In this context, societies may experience polarization, disintegration of trust in governments, or unrest“These factors complicate policy-making and pose risks to the stability and functioning of societies,” said the Washington Financial Institution.
«Governments must give everyone a fair ‘dose’ of access to basic services“, add the authors of the IMF text, referring to this metaphorical expression in health systems and vaccines.
As the pandemic pressures the public finances of many states, several countries will have to increase their tax revenues and spend their available funds more efficiently, recommend.
They also suggest supporting lower-income states, which have faced “particularly daunting challenges”.
“Achieving sustainable development goals, with access to basic services by 2030, would require $ 3 trillion for 121 emerging economies and low-income developing countries,” or 2.6% of estimated global GDP on this horizon, they estimate. .
To convince that action is needed, economists David Amaglobelli, Vitor Gaspar and Paul Mint stress in an IMF blog post that six million children in emerging markets and emerging economies are at risk of dropping out of school. it will have consequences for generations.
«Investing in children’s education, healthcare and education can bring strong results», According to them.
“If, for example, governments increased their spending on education by 1% of GDP, they could reduce the gap in school attendance rates between the richest and the poorest families by almost a third,” they said.
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