Kristalina Georgieva, Managing Director of IMF has urged China in reconsidering its tough “zero-COVID” approach which is aimed at isolating every case.
Georgieva made this comment during an interview with The Associated Press, advising China to retreat from massive lockdowns and come up with more targeted approach to COVID-19, as its current decision will not only have negative impact on the people but the economy as well.
According to her, China should consider vaccination policies and focus on vaccinating the most vulnerable people rather than lock down. This would be a better approach to covid without any significant economic cost, she said.
“Lock down have slowed down everything from travel to retail traffic and to car sales in the world’s second-largest economy. It would be best China adjust its overall approach and assess its supply chain functioning with an eye on the spillover impact it has on the rest of the world.”
Kristalina Georgieva
Georgieva also disclosed that, while China’s policy ripples out worldwide, the greatest risk facing the global economy is high inflation that requires central banks to raise interest rates, making credit more expensive for consumers and businesses. Coupled with that is the need for governments to take care of the most vulnerable people without undermining central bank efforts with excess spending, she added.
“Policymakers are faced with the very difficult time in the year. They have to be disciplined in the fight against inflation, because, inflation undermines the foundation for growth, and it hurts the poor people the most.”
Kristalina Georgieva
Avoid International Tension Between Countries That Disrupts The Supply Chain
Georgieva further indicated that, international tensions between China and West as well as that of Russia and West, has threatened to restrict trade and its beneficial effect on economic growth and prosperity.
While there are concerns about supply chains disrupted by the pandemic, we have to work harder on finding a way to counter these protectionist instincts, she said.
“The world was already seeing signs of increased hunger before Russia’s invasion of Ukraine disrupted grain supplies to Africa and the Middle East. More investment in resilient agriculture and support for small farmers as well as efforts to reduce food waste would be part of the solution.”
Kristalina Georgieva
In concluding, Kristalina Georgieva advised there would be a need for the world to focus on food security in a comprehensive way that reduces waste, increases productivity and most importantly, focuses more attention on small-scale farming, where a great deal of livelihoods of people, especially in developing countries, would go a long way to finally bring to an end issues relating to food shortages.
READ ALSO : Ghana: UN Expert On Toxics And Human Rights To Conduct Fact-Finding Visit
