Description:
The COVID-19 pandemic has affected all countries of the Asia Pacific region over the last few months with far reaching economic health and social consequences. To counter the impact governments have accelerated their health spending and announced large macroeconomic stabilization and stimulus policy packages. As with past disasters and crises in the region the Asian Development Bank has reacted with a number of targeted support interventions since the very early stages of the outbreak. In mid- April 2020 the Bank then put forward a comprehensive COVID-19 Response Package totalling $20 billion to support its member countries which rests on four pillars. The last few months have proven that multilateral development banks like the Asian Development Bank have the ability to respond quickly and to mobilize significant resources for a global emergency like COVID-19. Whilst this financial supported is urgently needed at this point attention will need to be paid on how debt sustainability for low- and middle-income countries can be ensured in the coming years. Given the unprecedented scale of and uncertainty around the COVID-19 pandemic it may offer a window of opportunity to redesign the way developmental finance is coordinated and the way it is delivered. This also includes a chance to “build back better” and to focus on a sustainable resilient and green recovery.