World Would Face Historic Famine, New ‘Great Depression’ – UN Chief

By Staff, Agencies

United Nations Secretary General Antonio Guterres on Thursday warned the largest gathering of world leaders since the coronavirus pandemic began that it will cause “unimaginable devastation and suffering around the world,” with historic levels of hunger and famine and up to 1.6 billion people unable to earn a living unless action is taken now.

Guterres also told the high-level meeting on measures to help low- and middle-income countries that fallout from the crisis could lead to “a loss of $8.5 trillion in global output — the sharpest contraction since the Great Depression of the 1930s.”

He called for immediate collective action in six critical areas: enhancing global financial liquidity; providing debt relief; engaging private creditors; promoting external finance; plugging leaks in tax evasion, money laundering and corruption; and adopting a recovery that tackles inequalities, injustices and climate change.

Nearly 50 world leaders spoke by video at the event along with economic experts, including the heads of the International Monetary Fund and the World Bank. But there were noticeable absences, among them the leaders of the world’s two largest economies — the United States and China, which are engaged in escalating tensions over the pandemic and a host of other issues.

Guterres said the “unprecedented human tragedy” behind the 5.5 million cases of COVID-19 and more than 350,000 deaths has been coupled with a devastating economic impact that has spurred his call since March for a relief package equivalent to more than 10 percent of the global economy.

“Developed countries have announced their own relief packages, because they can,” he said. “But we have not yet seen enough solidarity with developing countries to provide them with the massive and urgent support they need.”