COVID-19: A View From Latin America

Confirmed cases of COVID-19 remain deceptively low throughout Latin America, yet the exponential spread will hit the region hard. A group of former leaders point to uneven policy response and warn that the shock and uncertainty could pose catastrophic consequences for the region. Leaders must move rapidly, prioritizing public health rather than trying to evade the threat with populism, misinformation and disdain for scientific advice. “Latin America should focus on upgrading our health systems, channeling resources to hospitals, temporarily adapting idle infrastructure such as hotels and convention centers, and drastically increasing testing capacity,” writes a group of Latin American scholars, including former leaders. The countries must also address disrupted supply chains, falling export volumes, lost income from tourism and remittances. “The supply shock in a big part of the economy coupled with a broader demand shock could trigger a contractionary spiral. To prevent that outcome, bold policies to protect the incomes of individuals and households are essential.” They recommend cash transfers to the most vulnerable, job support, business relief, credit guarantees with the goals of preventing widespread bankruptcies, credit downgrades, currency destabilization and collapse of financial systems. All nations and citizens can anticipate reduced income and more debt, sharp budgetary adjustments and even increased taxes. Policies may differ among countries, yet immense international cooperation and coordination are required. The leaders recommend increased resources for the World Health Organization, widespread testing and rejection of export controls on essential supplies. “The crisis cannot be an excuse to weaken our hard-won democracies,” the letter concludes. “Instead, it should become an opportunity to strengthen democracy in Latin America, and to show it can deliver for citizens.” – YaleGlobal