मई 7, 2021
लेखक WID.world

Developing countries in times of COVID: Comparing inequality impacts and policy responses

Developing countries in times of COVID: Comparing inequality impacts and policy responses


In this brief, Tancrède Voituriez and Lucas Chancel explore the socioeconomic inequality impacts of the Covid-19 crisis, within and across countries, and the impacts of the policy responses designed to mitigate them. Recalling that pre-Covid economic and sanitary conditions where unfavorable to non-OECD countries, the brief emphasizes the role played by low-tech and prevention measures in these countries, with the emergence of a “lockdown with human face”. Inequality in the magnitude of recovery packages at both macro and micro levels are pointed out, as well as within country inequalities effects based on available data. However large or small today, the distributional consequences of Covid between and within countries could increase in medium-term as past pandemic and recessions have shown , calling for a new social contract in developing countries and a sea change in the dissemination of data on national income and wealth distribution within countries to start with.

Figures: Government Health Expenditure

These figures show that general government health expenditures expressed as a share of GDP actually shrunk in low income countries between the pre-financial crisis (2006-2008) situation and the pre-covid crisis ten years later (2016-2018). The move was the opposite in OECD countries and middle-income countries. The financial crisis 2008-2009 amplified the long-run divergence between public health expenditure between rich and poor countries (Figures 2A and 2B) even though divergence might occur also within the middle and high-income groups. A comparison with total health expenditures (i.e. including expenditures funded from private sources) shows that out-of-pocket spending increased in low-income countries to compensate for the decline in public expenditures in relation to GDP. The decline was even sharper among fragile and conflict affected countries.



This brief is published in partnership with the United Nations Development Programme


Authors thank Abhijit Tagade for outstanding research assistance. They are also thankful to the UNDP Inclusive growth teams for their comments: Mansour Ndiaye, Director – Inclusive Growth, BPPS New York; Vito Intini, Nathalie Bouche-Milbach, Walid Merouani, Nadine Abdelraouf – Inclusive Growth, Amman Regional Hub; Rita Sciarra, Renata Pardo – Inclusive Growth, Panama Regional Hub; George Bouma, Elena Danilova-Cross, Mihail Peleah – Inclusive Growth, Istanbul Regional Hub; Degol Hailu – Inclusive Growth, Addis Regional Hub.


डाउनलोड के लायक फाइलें