It is welcome that at last, the G20, representing 90% of the world’s population, got together last week in a teleconference to discuss the health and economic crisis caused by COVID-19. It has been obvious for weeks that co-ordinated international action was needed.

Given that the G20 was formed in 2009 to deal with another global crisis, the banking crisis of 2008, it is amazing that it has taken it so long to convene a meeting. It was pressed into doing so by India.

COVID-19 is a global threat, but all world leaders can think of are national solutions

But it is also troubling that the United Nations Security Council has not been able to get together, by teleconference or otherwise, to discuss such a threat to humanity.

Diplomatic tensions between the US and China prevented the holding of such a meeting. COVID-19 is a global threat, but all world leaders can think of are national solutions.

China led the way in stimulating its economy through infrastructure spending

In 2009, when the G20 was first convened, a substantial programme of action was agreed and implemented to counter the economic crisis.

The Financial Stability Board was set up and a global programme of actions to stabilise banks was agreed and put into action.

China led the way in stimulating its economy through infrastructure spending and this helped get the global economy going again.

Co-operation needed

Now that lives and not just livelihoods are at stake, an even more vigorous programme of action from the G20, and from the United Nations, is needed.

The US and China need to start co-operating. The two powers coming together to work on this global threat would send a signal of hope to the world.

The COVID-19 crisis has revealed how much we all depend on the chronically underfunded World Health Organisation

Gordon Brown, former UK prime minister and G20 chair, has organised a petition of his fellow former heads of government to the G20, asking them to get moving on COVID-19 in order to cope with its dire economic aftermath. I am signing this petition.

The COVID-19 crisis has revealed how much we all depend on the chronically underfunded World Health Organisation (WHO). In recent budgetary proposals, the US actually proposed halving the its contribution to the WHO.

Instead, all G20 members should agree to double their contributions. Brown is calling for an immediate $1bn injection of funds to the WHO.

When a vaccine is devised, it is important that it be affordable in every country, not just in rich ones

He also wants the WHO to manage a $35bn fund to assist less wealthy countries in the world in developing robust public health systems.

This may be too late for the present epidemic, but it will save millions of lives in the longer term.

He asks that $3bn be set aside immediately for global efforts to develop a vaccine for COVID-19. When a vaccine is devised, it is important that it be affordable in every country, not just in rich ones.

At the moment, there is a bidding war for this life-saving equipment and the poorest are losing out

Regarding treatment for those who have COVID-19, he suggests a $2.5bn global fund to help procure the necessary equipment, including ventilators and masks, and to ensure that they get to where the need is greatest, even if that is in countries that cannot afford to pay.

At the moment, there is a bidding war for this life-saving equipment and the poorest are losing out. Trade barriers and tariffs, many of them recently erected, are also hindering efforts to save lives.

The International Chamber of Commerce in Paris has said “the recent escalation of trade barriers is now wreaking havoc in key medical supply chains”.

In the case of ventilators, export restrictions would be particularly damaging

For example, restrictions on exports of life-saving equipment, including masks, test kits, disinfectants and ventilators, have been introduced by some countries. The global trade in test kits is worth $186bn and in disinfectants is worth $308bn.

In the case of ventilators, export restrictions would be particularly damaging. There is no firm on the entire continent of Africa, and only one in Latin America, that is manufacturing ventilators.

And even the countries that do have manufacturing capacity will have to import some of the components. Even soap and disinfectant have to be imported by most countries.

There are 78 countries that impose tariffs on soap and 23 that impose tariffs on disinfectants. This is crazy in the present circumstances.

The G20 also needs to consider the longer-term economic effect of the shutdown in global economic activity

The EU should abolish its own export authorisation system for ventilators because it will slow down production and cost lives, especially in the poorest countries of the world.

The G20 also needs to consider the longer-term economic effect of the shutdown in global economic activity. The ECB has taken welcome steps to help Italy and other heavily indebted countries that have been hit by the virus to borrow at reasonable interest rates.

But that simply adds to their debts. Collective EU action, financed by collective EU borrowing, in support of particular health-related spending should be undertaken.

At the moment, the EU can neither raise taxes nor borrow money and that means it is structurally unable to cope with a crisis like this one. The EU treaties should be changed to allow for a European response to sudden crises like COVID-19.

I propose

  • Substantial additional funds for the WHO, along the lines and for the purposes suggested by Gordon Brown.
  • The immediate elimination of tariffs and restrictions on the export or import of goods identified by the World Customs Organisation as vital to fighting COVID-19.
  • A mutual assistance programme to help countries with the greatest shortage of equipment and intensive care beds.
  • The exemption of medical staff who have been tested from immigration restrictions, to allow them go where they are needed.