Ebola crisis draining development budgets in West Africa, study finds

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Ebola crisis draining development budgets in West Africa, study finds

Thu, 2014-11-06 13:59 — mike kraft

UNITED NATIONS DEVELOPMENT PROGRAMME Nov. 5, 2014

New York -- The Ebola outbreak in West Africa is impairing the ability of governments to raise revenues, increasing their exposure to domestic and foreign debts and may make them more dependent on aid, according to the latest study (PDF) on the socio-economic impact of the crisis carried out by the UN development agency.

Investments in kick-starting economies and long-term development urgently needed

“We need to make sure that the Ebola outbreak does not lead to socio-economic collapse,” said Abdoulaye Mar Dieye, the Director of the Regional Bureau for Africa at the United Nations Development Programme (UNDP). “This crisis is already taking a toll on budgets and reducing the governments’ policy leeway to make much-needed investments in critical areas such as health and education for their citizens.” He added that the effects of the Ebola crisis will last long after the epidemic is brought under control.

In total, the governments of Guinea, Liberia and Sierra Leone are experiencing a shortfall of US$ 328 million to be able to function at pre-crisis levels, the study shows. The gaps are caused by increased spending to tackle the Ebola crisis and fiscal constraints resulting from a slowdown of economic activities such as tourism, mining and trade.

See complete release

http://www.undp.org/content/undp/en/home/presscenter/pressreleases/2014/11/05/ebola-crisis-draining-development-budgets-in-west-africa-study-finds.html?utm_source=Copy+of+November+5+2014+EN&utm_campaign=11%2F6%2F2014&utm_medium=email

Link to complete report