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In Jakarta, G20 finance ministers discussed the possible consequences of a war in Europe. The outlook does not look promising, as the main challenge is the economic recovery after the COVID-19 pandemic.
Even 14,000 kilometers away from Ukraine, the crisis there caused by the deployment of Russian troops near the border, is causing great concern. In their first meeting under the Indonesian presidency, the finance ministers of the 20 most important industrialized and developing countries, including Russia, warn of severe effects on the world economy, if Russia attacks Ukraine again and the western world then has to use harsh measures and economic sanctions. Exchange rates will fall, financial transactions with Russia and energy exports could be hit hard.
A number of ministers and the President of Indonesia, Joko Widodo, warned that another consequence could be the even higher rise in oil prices worldwide with negative consequences for economic growth.
“This is not the time for new rivalries and tensions that threaten economic recovery, let alone world security, as we are now seeing in Ukraine. “All sides must end hostilities,” said the Indonesian leader at the Conference Center.
Lindner wants to lower inflation
Finance ministers and central bankers from the group of the 20 most important countries in the world are looking for different ways and means to recover the economy faster from the Corona pandemic, which is not over in any way, as some ministers said in their speeches. Theirs. Only half of the delegations went to attend this meeting in Jakarta.
The rest have decided to participate via video links due to the pandemic.
The new German Minister of Finance, Christian Lindner was one of them who decided to participate from a distance. From Berlin he highlighted as extremely important the reduction of inflation, securing the supply chain and curbing energy prices.
New aid fund
The head of the International Monetary Fund, Kristalina Georgieva, warned in Jakarta that global economic growth has lost momentum due to the pandemic.
US Treasury Secretary Janet Yellen said from Washington that developing countries in particular need more financial assistance to put their health systems in place and prepare for further epidemics.
Yellen proposed a $ 75 billion “health fund” headquartered at the World Bank. She warned that inaction would now have “devastating consequences”.
“At a time when the human and economic trauma of the pandemic is fresh in our minds, we have a political window to act to address the shortcomings in our global health systems. “The cost of inaction can be a real disaster.”
After two days of consultations in Jakarta, it is also unclear which of the G20 countries can and wants to raise money for such a fund.
Indian Finance Minister Nirmala Sitharaman backed the US proposal.
Intensify the vaccination campaign in poor countries
The 165 former prime ministers and scientists also demanded more money in an open letter to G20 ministers. The rate of vaccination against COVID-19 in the poorest countries must be urgently increased to protect the population there, but also to prevent the emergence of dangerous new mutations of the virus.
“The world institutions that are supposed to organize and pay for vaccines have dramatic financial gaps,” said former British Prime Minister Gordon Brown.
About $ 16 billion would be needed to vaccinate people in poor countries. The G20 finance ministers reiterated their commitment to fund the United Nations and European Union COVAX vaccination campaign.
To date, COVAX has delivered 1.8 billion doses of vaccine to 144 countries. This is by no means enough to achieve the vaccination quotas that are common in the richest industrialized countries.
COVAX chief Seth Berkley said in late January that his organization was “virtually penniless”. New doses of the vaccine cannot be purchased or donated. / Deutsche Welle /
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