The COVID-19 pandemic highlights the need for a radical revamp of the international aid architecture, so that massive amounts of money can be devoted to global public goods. And some of this will have to be financed by reducing existing country lending.
CAMBRIDGE – We are still in the early stages of dealing with COVID-19. Yet, it is already clear that this new coronavirus will have long-lasting effects on the global economy, how we deal with pandemics, and perhaps even the architecture of international aid. This is because the COVID-19 pandemic is putting the spotlight on one of the less-noticed distortions of the international aid system: it does exactly the opposite of what the evidence requires.
CAMBRIDGE – We are still in the early stages of dealing with COVID-19. Yet, it is already clear that this new coronavirus will have long-lasting effects on the global economy, how we deal with pandemics, and perhaps even the architecture of international aid. This is because the COVID-19 pandemic is putting the spotlight on one of the less-noticed distortions of the international aid system: it does exactly the opposite of what the evidence requires.