International banks and other globalist organizations are being suggested as solution starters for “saving” poor nations and help them recover from the coronavirus plandemic.
In Central America, where just over 11,000 people have supposedly died from SARS CoV-2, organizations like the Inter-American Development Bank is said to be putting up over 3 billion dollars to help countries like El Salvador, Guatemala, Nicaragua, Honduras and Belize recover from the plandemic.
The economy of this subregion has not been immune to covid, so the Inter-American Development Bank has decided to allocate 27% of its budget to attend to the effects of the plandemic in these countries.
The 3,3 billion dollars will be used in projects to “improve health care where it is needed, prevent the vulnerable population from sinking into poverty and hunger, and breathe life into the companies and businesses that will be the protagonists of the recovery.” That is the plan anyways.
Most of the economic disaster has come from governments’ decisions to carry out confinements, which have only increased the number of infections and overwhel hospitals, especially in Haiti and Dominican Republic.
Central America finds itself in a particularly difficult situation because there were no sanitary conditions in terms of the number of ICU beds, respirators, medical personnel, or the ability to test for the illness.
Although governments had at least one month of time since the plandemic begun in China to prepare their infrastructure, and many years before the arrival of the virus to change the way healthcare is delivered to their people, they were negligent in their preparation and conduction of the emergency.
As a result, Central American countries are now in shambles, with semi closed economies, thousands of businesses closed for good and rates of unemployment higher than 20%. Governments like the one in Costa Rica has expectedly proposed the acquisition of new debt and raising taxes to deal with the consequences of the confinement.
Central America’s GDP will contract by 6.2% in 2020, which exceeds the 5% decline recorded during the Great Depression of 1930.
With this scenario, the search and implementation of solutions moves in the direction of more spending and international banking organizations like the IMF and IDB are two favorites to acquire debt that will allegedly be used to fund ad hoc programs for each particular situation. In reality, however, this money will be used to pay for government’s unfunded liabilities, not to improve living standards.
In Nicaragua, The IDB chose to allocate 43 million dollars to strengthen the health system. “Our contribution was the largest to address the health situation, with the improvement of tests, monitoring capacity, but also with the purchase of equipment, with optimization of hospitals, with more beds and respirators,” says an IDB representative.
It is one of the few examples in which they decided that it was the health system itself that needed funding. In most cases, they have chosen to invest in the economic support of vulnerable people and companies, with post-covid reconstruction as their goal, they said.
“In the case of Belize, we had a different approach. It is a small population and we did a reformulation of a project to guarantee health in the main support of its economy, which is tourism,” explains the IDB representative. With a population of just over 380,000 inhabitants, 40% of employment and 37% of the country’s GDP depend on this sector.
The project to improve its quality, resilience and governance, endowed with 15.5 million dollars since 2015, quickly turned after the emergence of covid-19 into one that would contribute to maintaining visits by ensuring maximum protection of tourists’ health.
Now the temperature measurement at entry points, such as airports, or the creation of safe corridors, are the norm; but it wasn’t four months ago.
“We still cannot measure the impact, but the truth is that without these measures, tourism could not have been opened,” the IDB representative reflects. “There are external factors that influence the situation, such as whether or not people have confidence to travel, but we do know that if we had not enabled these issues, we could not think about reactivation.”
In Costa Rica, the IDB approved a 265 million dollars operation to suppposedly ensure minimum levels of income and employment for the country’s most vulnerable population in the immediate period and during the economic recovery after the crisis.
The money would be supporting people who have lost their jobs, both in the formal and informal sectors, and who have seen that their wages reduced or disappeared.
The formula is the Protect Bonus project, which includes training activities to improve skills and facilitate formal labor insertion, strengthen and expand the coverage of public programs, and wage subsidies for companies in the tourism sector, conditional on maintaining their employment levels.
In total, the operation will benefit more than 365,000 people, says the IDB, as it highlights that “this experience will be one more element for the design of welfare states in the future.”
Globalist policies implemented by their governments have made this region a very unequal one, with a lot of informality in the workforce. But such policies, although failed in all kinds of ways, will continue to govern over Central America, where governments have no plans to promote economic growth and production programs. Instead, they will limit themselves to have subsidies that will maintain the State as the “protector” of the most vulnerable.
But subsidies are not limited to government programs. In Honduras and Panama, projects have been designed for the private sector. In the case of the first, the IDB Investments include 64 million dollars to the Elcatex textile group.