Coronavirus: Scott Morrison urges G20 leaders to look after Third World

Scott Morrison is appealing to G20 leaders to do what they can to help Third World countries facing financial failure.

Scott Morrison in Canberra on Wednesday. Picture: AAP

Scott Morrison is appealing to G20 leaders to do what they can to help Third World countries facing financial failure because of the COVID-19 virus after more than 80 countries applied to the World Bank for aid.

G20 finance ministers, including Josh Frydenberg, have already been warned that the economic cost of the pandemic raises the prospect of sovereign debt risk as the global economy becomes more fragile.

The Prime Minister’s appeal to other G20 nations overnight in a virtual meeting is aimed at heading off national bankruptcies as the poorer nations in Southeast Asia, Africa and the Pacific struggle to come to terms with the health and economic impacts of the virus.

Mr Morrison has pledged Australia will do what it can in the ­Pacific and for its neighbours but said such help was restricted by the extent to which it had to protect its own population and economy.

As part of a push to keep supply chains open and business and industry feeding the global economy, Mr Morrison also pushed for a guarantee for the global trading system. Australia is particularly pushing for the continued supply of medical supplies and vital medicines such as antivirals before a vaccine can be developed. Mr Morrison said on Wednesday that he would urge the G20 leaders to “do whatever it takes to save lives, overcome the pandemic and cushion the economic blow”, and warned the world was in a “race against time to find a vaccine”.

He also flagged asking other advanced economies to ­ensure any restrictions on trade and investment due to necessary health measures were temporary, targeted and consistent with World Trade Organisation rules.

“The group of G20 nations has a role to support developing and vulnerable countries to overcome the health and economic ­crisis,” he said. “For Australia, our Pacific partners remain front of mind.

“By working ­together, we can amplify our ­national responses and assist those countries that need our support.”

He will tell world leaders that Australia had delivered the most “significant set of economic measures to support the economy since World War II”.

“We have announced $189bn in measures — nearly 10 per cent of GDP, which is consistent with the strong measures being taken by other major economies,” he said.

Trade Minister Simon Birmingham also told ABC radio on Wednesday that the G20 virtual leaders’ meeting was an opportunity to “share and co-operate around knowledge as to what is working” in terms of limiting the spread of COVID-19.