Recovery at a Crossroads: How Countries Spent Covid-19 Funds

A new report found that 38 percent of Covid-19 recovery funds in 21 developing countries went to big corporations instead of social protection, smaller businesses and informal workers. The new report by the Financial Transparency Coalition (FTC) and partners entitled “Recovery at a Crossroads: how countries spent Covid-19 funds” also found that one-third less money was spent last year compared to 2020, down to 2.4 percent of GDP on average, due to the worsening economic situation, even as the needs kept growing.

This is happening as more than 85 percent of the world’s population will live in the grip of stringent austerity measures by next year. In total, between 75 to 95 million people are expected to be pushed into extreme poverty this year alone due to the Covid-19 pandemic and the cost-of-living crisis spurred by the Ukraine war amid rising inequality, according to the UN.

A media launch event of the report will be held during the End Austerity Festival where alternatives to austerity will be presented on Wednesday September 28, with high level speakers. Registration details can be found here.