All countries will attempt to build up production of "essential goods" including medical supplies and possibly even food items
The globalized system has been increasingly under threat for the past several years, particularly from populist parties working on fears and resentment of those who feel left behind by globalization.
This reversal of globalized production chains is bad news for developing countries, coming at a time when the medical emergency responses to COVID-19 are drawing heavily on public and private resources, and lockdowns are hitting output and employment, both in the formal and informal sectors.
However, in the emergency, there is hardly any mention in the policy and public debate of the impacts of COVID-19 in developing countries, let alone the economic impacts on the poor in these countries.
It is quickly becoming clear that the economic and social impacts of COVID-19 in developing countries will stretch far beyond the immediate medical and social costs.
In spite of the current crisis, it is crucial that OECD countries reach out to these governments and offer their support: the challenges to rebuild institutions and economies will exceed the capacities of many developing countries.
