For the past few months the correlating calamity has been recognized around the world.
What are your thoughts on what we are witnessing with this particular COVID crisis?
Theres two sides to this that everybody is well aware of.
On one side its the health-related issues,
and then on the other side the twin economic related issues that were dealing with,
not just for things of today but things that were gonna have to be dealing with.
In terms of recovery across the world and for the continent in particular,theres going to be a number of issues.
Very often there is a tendency towards international community,
when there is such crisis whether its in Africa or other parts of the world,
but in this case we see that the entire world is affected,so what can be done?
On the immediate side,we have to deal with the debt crisis,
and I think theres a long-standing precedence for the moratorium that are just refinancing a lot of the debt packages;
otherwise, were going to be heading towards a default across the continent.
As we then look in the future how do we deal with this.
The old way of economic development…were essentially developing economies…
think about leveraging globalization, a primer arbitrage, low-cost goods,
being manufactured on the continent to be sold internationally.
Thats not going to be the factor.
I think youre gonna find a lot of developed countries saying,
we need to produce the goods in those countries.
And I think we look at these domestic markets.
Theres some expertise that perhaps were not recognizing,
and Im pointing towards the international aid architecture:
the 150 billion dollars of A.I.G.overseas development assistance.
Thats principally executed by international development organizations.
And so we took it upon ourselves at the Milken Institute to do a little bit of this research in partnership with UBS Optimus Foundation.
We looked at 500 global INGOs that are working with their donors,
to do a range of health capacity-building and delivery of commodities.
And what are the some of the findings?
Well, what we identify was you should be looking at these entities from a couple of different pillars.
On one side,theres a relationship these organizations have with their donors.
Their donors sometimes actually prevent their capabilities from really handing off into a commercial sustainable enterprise.
So I think theres a change that needs to happen from the donor to the recipient organization.
Thats one thing that we I think identify.
The second thing we identified was, well,how much capital and what type of capital are they using.
Is this a place or impact investors to partner with INGOs to build social enterprises?
Now the issue is we need to make sure that we advance growth potential over and above the risk potential,
because of how slow the economies have gone.
And so looking at Basel regulations that allow capital to flow in to spur these type of activities.
Thats in the control of not just the Basel Committee in Switzerland,
but also in the countries central banks to make sure that recovery happens appropriately.
So there are some projections,
that Africas GDPs could be reduced by three to eight percent this year because of the COVID-19 crisis.
What do you make of it and if you were to kind of summarize it,
what kind of strategies can be put in place,
to make sure that resilient economies are built to be able to withstand such crises in the future?
To be honest with you,I think the estimates are probably a little too early.
We were not exactly sure how much its gonna really dip down.
Theres…Ive seen the range is now…of 10 to 15 percent across the board.
With that being said the strategy to come back,I think its rooted in a couple of pillars.
On one end we actually realized that the bedrock of being able to build back better if you will.
Its going to be an infrastructure strategy that makes sure that the foundation.
There are a lot of infrastructure gaps throughout the continent,
to make local regional and international markets work more effectively.
The second thing probably need to realize is there is going to be effectively a certain number of industries,
that countries need to make sure or that they have the ability to have in country supply chains,
but also on a regional basis as well.
And Im talking purely on the medical devices a pharmaceutical front,
and then the third one is recognizing that vulnerable populations are the ones that are always hit,
and so how do we have an inclusive economy such that people could be a part of their own resilience going forward.
Then that means thinking a little bit more holistically about the inequality,
that is pervasive throughout the continent in various different countries.
That we bring individuals into the economy more women into the economy more youth into the economy,
and being able to actually have the bottom of the pyramid if you will,
the strongest part of the of the economy.
End of this. Thank you so much for being with us. Well see next time.
Always a pleasure, thank you Linord.