It’s time for the G20 to act on COVID-19

Only a coordinated international response will stem the worst effects of the coronavirus pandemic

As the world gets to grips with the rapidly escalating coronavirus outbreak, there appears to be a general global consensus on what needs to be done to mitigate the impact of the pandemic in both human and economic terms. But that consensus may not be all it is cracked up to be if it does not translate into coordinated global action against a threat that, by its very nature, knows no borders.

Various efforts at “social distancing” will hopefully shorten the length of the outbreak and flatten the infection curve. Emergency fiscal and economic stimulus measures have, quite rightly, been deployed in an effort to stabilise financial markets and stave off a potentially deep recession. But a subtle sub-text to many recent interventions has emerged in the form of what might be termed “national distancing” — with international co-operation showing worrying signs of fraying at the seams.

It has been surprising to witness the general lack of coordination and solidarity between the world’s largest economies as the true threat of COVID-19 has become apparent in recent weeks. In many ways, the contrast could not be starker with the international response to the global financial crisis just over a decade ago. Remember former UK Prime Minister Gordon Brown’s Freudian slip that his London G20 Summit in 2009 had “saved the world”? Commentators may have smirked at the time, but that’s precisely the mindset we need from the leaders of the world’s largest economies as we enter truly unchartered territory. 

The rationale for an emergency summit of G20 leaders — virtual, of course — is as clear as it is compelling. At a single stroke, it would help reverse the declining levels of trust evidenced by recent public polling in political handling of the spread of the virus. More importantly, it could also rapidly agree on a comprehensive policy framework to complement the first-class institutional response of the World Health Organization.

An immediate priority in this regard must be for G20 leaders to agree on a set of cast iron commitments to get infection control products into the hands of those who need them the most. This must involve at least two core elements.

First, the G20 must reverse and commit to avoid export bans or limits on the free flow of all necessary medical supplies, medicines, disinfectant, soap and personal protective equipment. The growing use of beggar-thy-neighbour policies in medical supply chains must be brought to an immediate halt: short-sighted trade restrictions will only exacerbate the potential long-term toll of a virus that crosses borders with ease.

Second, world leaders must do all they can to reduce the costs of necessary medical supplies. This can be readily achieved by lifting import taxes, quotas and other government-imposed costs. To complement these interventions, G20 leaders could commit to significantly enhanced cooperation to speed the development, trialing and deployment of COVID-19 vaccines and treatments.

A final step should be to significantly scale financial assistance to help the world’s poorest countries deal with the likely effects of COVID-19 — both by increasing aid funding for public health programmes and encouraging contributions to the World Health Organization’s COVID-19 Solidarity Response Fund. A crisis at home is no excuse to leave the most needy behind.

It goes without saying that G20 leaders also have a vital role to play in stemming the growing economic cost of the current crisis. The central lesson from the financial meltdown of 2009 is that only collective interventions are sufficient to stabilise global markets once they enter crisis territory. After weeks of market turmoil, it’s time for our leaders to pledge to work together to do whatever is necessary to keep the world economy out of recession and to restore confidence, growth and jobs.

Only effective global cooperation can limit the potential human and economic toll of COVID-19. The limits of inward looking policies are already patently clear. World business is already mobilising at scale under the auspices of the International Chamber of Commerce, but concerted political leadership is urgently required. 

That’s why it’s high time for world leaders to get around the (virtual) table and agree on a coordinated global action plan to tackle COVID-19 without delay. The moment for G20 leaders to save the world is most certainly upon us.