World Bank

Rich countries must open the way to cheaper mass-produced COVID-19 vaccines in order to protect every person in the world and avert a $9 trillion “worst case” global economic catastrophe, said Oxfam today. They should also agree this week to inject $650 billion more into the global economy to help developing countries cope with the pandemic’s already devasting effects.

Nadia Daar, Head of Oxfam International's Washington DC office, responds to the World Bank’s announcement today that it has appointed Mr. Makhtar Diop as the new CEO of its private sector arm, the International Finance Corporation (IFC).

"The failure to cancel debt payments will only delay the tsunami of debt that will engulf many of the world’s poorest countries, leaving them unable to afford the investment in healthcare and social safety nets so desperately needed", said Jaime Atienza, Oxfam International's Debt Policy Lead, in reaction to the G20 Finance Ministers and Central Bank Governors Meeting.

84 percent of the International Monetary Fund’s (IMF) COVID-19 loans encourage, and in some cases require, poor countries hard hit by the economic fallout from the pandemic to adopt more tough austerity measures in the aftermath of the health crisis, warned Oxfam today.

The World Bank’s report shows clearly that billions of people were more vulnerable to the economic impacts of COVID-19 because of decades of economic policies which have kept them living one paycheck away from poverty, while the richest in society accumulate ever more wealth.

Responding to the World Bank's proposal of a $12 billion initiative to help poor countries purchase COVID-19 vaccines, Anna Marriott, Health Policy Advisor at Oxfam, said: "The World Bank is right to be concerned about whether poorer countries will be able to afford COVID-19 vaccines and treatments and they should use their influence accordingly."

“Today’s lack of progress on debt relief is as irresponsible as it is underwhelming. Merely encouraging private sector creditors and multilateral banks to participate in the Debt Service Suspension Initiative (DSSI) is woefully inadequate and a dereliction of duty. The G20 is in denial of the scale of response needed to address the worse global crisis in a century," said Jaime Atienza, Oxfam International’s Debt Policy Lead, in response to the communiqué of the G20 Finance Ministers and Central Bank Governors Meeting.

"The IFC can’t simply wash its hands of responsibility for upholding its own policies. There must be reparations for the damages caused," said Christian Donaldson, Oxfam International’s Senior Advisor on International Financial Institutions, in response to he publication today of an independent investigation into a hydroelectric dam project in Guatemala that found the International Financial Corporation (IFC), the World Bank’s private sector arm, was negligent in preventing harm to indigenous communities.

Oxfam warned today that millions of people in East and Central Africa, already suffering due to flooding and the impact of coronavirus, are at risk of increased hunger and poverty as the region braces for the latest generation of locusts which are due to hatch in June ―just when crops are to be harvested.