Let’s fight COVID regionally

THE EDITOR, Madam:

REMITTANCES TO the Caribbean and Latin American regions is immensely critical for the sustenance of millions of families.

In light of the foregoing, it is evident that the COVID-19 outbreak will result in a severe loss of economic and social gains globally. The growing threat of the pandemic has already begun to adversely impact critical sectors, resulting in a debilitating global economic slowdown. The United Nations Economic Commission for Latin America and the Caribbean chief, Alicia Barcena, stated that “the effects of COVID-19 will cause the biggest recession that the region has suffered since 1914 and 1930. A sharp increase in unemployment is forecast, with negative effects on poverty and inequality”.

CALL TO INTEGRATE

Now more than ever, we must heed the call for regional and international economic bodies, such as CARICOM, OAS, OECS, ACS, CELAC, among others, to integrate and promote deeper regional solidarity during this harsh economic climate and anaemic growth trend, to ensure stability and buoyancy is recovered in the least possible time frame.

This amalgamation, undoubtedly, will allow for cost-sharing and risk pooling initiatives, resulting in prompt and effective mobilisation of resources and funds to critical areas.

The adoption of countercyclical fiscal policy regionally, in which governments increase spending and cut taxes during a depression, should also definitely aid in such a recessionary environment. With its utilisation, it promotes an inducement for growth, as it provides an opposing force to cushion frequent economic shocks during volatile periods, when businesses and consumer spending lessens dramatically. This increases aggregate demand, thereby facilitating economic recovery.

The Caribbean and Latin American region is filled with vast potential to counteract any crippling circumstances we might face. The fight against COVID-19 demands a regional response. I know, innately, that individual governments are safeguarding their own interests, but I firmly believe that the efficacy of these countries’ initiatives will be further strengthened through regional coordination to effectively mitigate, and win our fight in counteracting, this highly resistant outbreak.

It is hoped that as the pandemic continues to create paths of chaos and instability Caribbean governments will be ultra-prudent and make a concerted and urgent effort to fight together, at all costs, to ensure normality, and that economic viability is achieved throughout the region in short order.

TARA HENRY