The pandemic has affected many aspects of modern people’s life. Thus, it also showed the current global finance condition. According to Vassilis Milionis, this condition could be even worse if many countries don’t have enough preparation before the pandemic. However, the problem is still there and growing.
For this reason, a financial organization, the Organization for Economic Co-operation and Development (OECD) and the United Nations Development Programme (UNDP) launched a plan that could be a solution for the global finance problem. The program focuses on supporting the Sustainable Development Goals (SDGs) to help the company and individual rise from the slump thanks to the global pandemic effect. This program plan was presented at the Paris Peace Forum, where it receives many good responses. Many participants of that event call it one of the best solutions for global financial problems today.
Vasilis Milionis also said that this problem could bring another problem in the future.
The OECD and UNDP programs focus on creating sustainable and resilient investments. This type of investment will help many countries, especially the developing countries and states, recover from the pandemic’s problem. This year itself, developing countries already lose at least USD 700 billion of external finance sources.
If this condition keeps existing, there is a risk of another global crisis in the future. Worst of all, the movement to decrease poverty and improve those countries’ quality of life will be slowed down and even stop. This program tries to create a sustainable system and environment for those countries. Therefore, even after this program is finished in the future, the countries that used the program will be able to survive and sustain their economy.
In a better result, those countries can even solve many economic problems that it had before the pandemic. Currently, the two organizations are still in the middle of designing the right and worked framework for this system. When it is finished, this system will change the current financial system, making it even better and functional than before.
However, the need for big funds to run this program also becomes another obstacle to make it into reality. It said that it needs at least 1.1% of total assets in the system that is currently held by the banks that reach around 379 trillion dollars. So, Milionis recommends people to patiently wait as that is the only thing that people can do now.