Debt, COVID-19 and Inclusive Growth for Sustainable Development in Sub-Saharan Africa

Abstract

The socio-economic crisis associated with COVID-19 is threatening progress towards attaining sustainable development goals. In this regard, global GDP is to contract in 2020 by 5.2% as against 2.8% in SSA. In addition, as global recession is imminent, developing countries stand to accommodate about 60 million people into extreme poverty amid rising debt. However, as an indispensable requirement for sustainable development, United Nations and African Union resolve to eradicate extreme poverty through aspirations for inclusive growth by 2030 and 2063, respectively. It is on this background this paper examines the impact of debt and COVID-19, as well as the effectiveness of growth inclusiveness for sustainable development in SSA. Imperatively, using a panel of 43 countries over the period 2016-2019, it is established that the level of employment increases, just as life expectancy improves, in tandem with inclusive growth. Also, the timeline analysis of the COVID-19 period reveals that the unemployment rate, as well as public debt, is increasing substantially above the levels before the outbreak; thereby portending a setback on the gains so far achieved towards sustainable development in the region. As such, total debt cancellation is suggested along with more financial assistance to economies in the region.

COVID-19 vaccine-induced recovery and the implications of vaccine apartheid on the global tourism industry

“…The opening up of the economy in the Global North also meant that this region could redirect resources towards the economic reconstruction process. On the other hand, however, the developing world continued to incur massive expenditure on health and social relief expenditure in developing countries due to the impacts of COVID-19 from morbidity, and consequent health costs were likely to worsen their economic development prospects and entrench poverty and inequality, which could reverse gains made under the Sustainable Development Goals (SDGs) ( Kolawole, 2021 ).…”