(Stillness in the Storm Editor) The International Monetary Fund recently stated it would institute a coronavirus relief policy, totaling $500 million for debt relief. The relief is in the form of a grant, specifically to be used by nations that are having difficulty in paying their IMF debt obligations. This sounds good on the surface, but I would argue it is a token gesture that offers only short term help without addressing the grander issue of economic fallout due to the global pandemic.
The program appears to be one where funds will be collected by nations that can provide monies, which will go to nations that are struggling to pay the IMF debts they have incurred in the past.
This would be like a landlord telling the world they are collecting money from their rich friends to help pay rent for their renters. So this is helpful to be sure.
But the grander issue I spoke of is the damage to capacity for production caused by the pandemic lockdown. A nation’s ability to generate money is tied to a healthy economy—wherein citizens of that nation can produce goods and services in enough abundance to pay taxes that go toward IMF debt.
At present, many economists agree, and I agree, that the lockdown has caused massive damage to the economic production machines of the world. As such, once the lockdown is lifted, nations will have to work to rebuild the economic landscape for their citizens, so they can begin to produce goods and services in abundance once again.
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This debt relief will help, at the national level, but it doesn’t offer much to the individual citizens.
And in this regard, we’ll need to do more to help people, directly, to restore their ability to be active contributors to their local economies. As disheartening as this situation is, this is a good chance to produce new and better ways of working in the world.
Thus, as people, we have time now to think about what we want to do in a post-pandemic world. Hopefully, this time will be used well
– Justin
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by Staff Writer, April 13th, 2020
Ms. Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF) issued the following statement:
“Today, I am pleased to say that our Executive Board approved immediate debt service relief to 25 of the IMF’s member countries under the IMF’s revamped Catastrophe Containment and Relief Trust (CCRT) as part of the Fund’s response to help address the impact of the COVID-19 pandemic.
“This provides grants to our poorest and most vulnerable members to cover their IMF debt obligations for an initial phase over the next six months and will help them channel more of their scarce financial resources towards vital emergency medical and other relief efforts.
“The CCRT can currently provide about US$500 million in grant-based debt service relief, including the recent US$185 million pledge by the U.K. and US$100 million provided by Japan as immediately available resources. Others, including China and the Netherlands, are also stepping forward with important contributions. I urge other donors to help us replenish the Trust’s resources and boost further our ability to provide additional debt service relief for a full two years to our poorest member countries.”
The countries that will receive debt service relief today are: Afghanistan, Benin, Burkina Faso, Central African Republic, Chad, Comoros, Congo, D.R., The Gambia, Guinea, Guinea-Bissau, Haiti, Liberia, Madagascar, Malawi, Mali, Mozambique, Nepal, Niger, Rwanda, São Tomé and Príncipe, Sierra Leone, Solomon Islands, Tajikistan, Togo, and Yemen.
Stillness in the Storm Editor: Why did we post this?
The news is important to all people because it is where we come to know new things about the world, which leads to the development of more life goals that lead to life wisdom. The news also serves as a social connection tool, as we tend to relate to those who know about and believe the things we do. With the power of an open truth-seeking mind in hand, the individual can grow wise and the collective can prosper.
– Justin
Not sure how to make sense of this? Want to learn how to discern like a pro? Read this essential guide to discernment, analysis of claims, and understanding the truth in a world of deception: 4 Key Steps of Discernment – Advanced Truth-Seeking Tools.
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