Escaping the COVID-19 slowdown – The World Peace Organization
Africa is often described as a continent plagued by endemic violence, disease, famine, poverty and misery. While there is certainly some truth to this characterization, this view obscures the emerging reality of an Africa in the process of modernization and industrialization that exceeds even many developed Western countries in terms of the growth rate of the world. Real GDP. Despite the threats to the stability of the African continent, the massive levels of foreign direct investment, the diversity of the domestic market and the strong consumer confidence before COVID-19 cannot be ignored when examining the state of the African economy. The various nations that make up sub-Saharan Africa serve as fascinating case studies in the 21st the world economy of the century, demanding both respect and scrutiny from the international community.
While World Bank projections predict growth to slow to -3.3%, due to the economic fallout from the pandemic, it would be the region’s first recession in 25 years. Although the African economy has experienced exceptional growth and economic progress in recent years, the fundamentals of its economy are certainly being tested by this pandemic. How it rebounds from the current downturn will be an indication of the health and resilience of its underlying financial framework.
As countries like the United States and Germany struggle to break the economic slowdown caused by the pandemic, the macroeconomic outlook for West African countries generally remains optimistic. Of course, these prospects are based on two main factors: the distribution of vaccines and the return of consumer confidence. While the former may be slightly easier to measure, with the emergence of supply chain monitoring and surveillance systems employed by public and private organizations, the latter is not as measurable in the short term. Consumer confidence can be difficult to predict with precision, even in the absence of a global pandemic. As a result, the optimism that accompanies the creation and distribution of vaccines needs to be tempered with a realistic picture of what it will take for African consumers to return to pre-COVID growth.
The World Bank, numerous NGOs and some public-private partnerships place vaccine distribution at the heart of the priorities of the 2021 humanitarian agenda. The secure distribution of verified and safe vaccines is essential for a healthy economic recovery and, in this era, of the interdependent world economy, the international system provides support. Last week, the World Bank gave $ 30 million to aid efforts in Rwanda. Even the World Trade Organization (WTO) has underlined the importance of vaccine deployment for economic prosperity, with statements from its newly elected leader, Ngozi Okonjo-Iweala, highlighting the role of global health in global financial stability. .
If the vaccine rollout is successful and fair, then a strong rebound in consumer confidence will surely follow. This is not unique to Africa, as many countries in the developing and developed world have already seen positive signs of recovery. In Africa, however, the economic rebound can all too easily be halted by Islamist insurgencies, floods, famines and other dangers. This instability of infrastructure is the reason why the entire international community must rally to Africa’s recovery. If they are not spurred on by altruism, then simply out of their own self-interest, developed countries are incentivized to devote resources to helping Africa’s recovery. As many have expressed it: when Africa wins, the world wins.