Covid-19 widens gap between rich and developing countries, like SA – Wall Street Journal

South Africa's economy is likely to contract by 7.2% this year as a result of Covid-19 shutdowns. The International Monetary Fund is warning grimly about growing debt repayments, even as it approves about R70bn in emergency financing. We're not alone, though. The South African scenario is part of a global economic trend in which developing countries are struggling to sustain the high growth rates of a decade ago that promised to catapult them into the economic big league. The first decade of the 21st century saw the BRICS countries (Brazil, Russia, India, China and South Africa) showing potential to catch up with more developed nations. But the promise has not been fulfilled: economists cite lower commodity prices, trade protectionism and automation that cuts the need for cheap labour as reasons. The pandemic is just the latest blow to developing countries around the world. – Renee Moodie 

Covid-19 may keep developing countries from catching up to rich ones

By Jon Emont

Even before the pandemic, developing countries struggled to sustain the high growth rates of a decade ago that had promised to catapult them into the economic big leagues. The coronavirus is making their path much rockier, potentially entrenching the divide between the world's rich and poorer parts.

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