COVID-19 Poses Grievous Economic Challenge to Landlocked Developing Countries

The Covid-19 (coronavirus) pandemic is increasing the risks of a balance of payments crisis, a food crisis and a debt crisis in landlocked developing countries (LLDC). A few LLDCs—with extremely high levels of external debt owed to private creditors—are particularly vulnerable. The unfolding multiple crisis may trigger instability, violence and conflict in many LLDCs, particularly in countries that have been mired in conflicts and civil wars in recent years. » High levels of income inequality in LLDCs may undermine their ability to implement effective stimulus measures to support the most vulnerable segments of their population. Timely international support is helping LLDCs avoid an immediate crisis but a long-term rescue and recovery plan is needed to steer their economies towards meaningful structural changes.