Gallagher and Kozul-Wright on the Need for Fiscal and Policy Space during Covid-19

Kevin P. Gallagher, Director of the GDP Center and Professor of Global Development Policy, recently co-wrote an article calling on international financial institutions to adopt measures to give developing countries the space to fight and recover from covid-19.

Gallagher co-wrote the article with Richard Kozul-Wright, Director of the Division on Globalization and Development Strategies at the United Nations Conference on Trade and Development (UNCTAD).

The piece entitled “Breaking Out of the Double Squeeze” the Need for Fiscal and Policy Space during the COVID-19 Crises” was published by Global Policy on June 26, 2020.

An excerpt from the article:

There is an urgent need for the global trade and financial system to align itself with the global effort to attack the COVID crises and put in place a resilient, inclusive, and sustainable recovery.  As nations attempt to do whatever it takes toward these ends, they should not be squeezed by a lack of international liquidity and purchasing power due to volatile capital flows, nor should they be squeezed by WTO and ISDS claims in trade and investment treaties.  These regimes need major reforms and developing countries should not pay for these inefficiencies that will inevitably be reformed.