Impact of Covid-induced school closures deeper on kids from developing countries, says IMF

Learning losses due to the Covid-19 pandemic have been highly unequal as children from developing countries have had to face school closures for twice as long as compared with advanced economies, said the International Monetary Fund (IMF) in a blog post. 

The impact of this will be magnified because the share of those at school age in developing countries is nearly double that of advanced economies, it added. 

Citing their data, the IMF said that while education losses from classroom closures by the end of 2020 amounted to as much as a quarter of the school year in advanced economies, it was up to half in emerging and developing economies.

“Such strains also underscore the challenge for graduates joining weak labor markets. Those entering the workforce amid economic downturns experience weaker employment and wage prospects, as was the case with the Great Recession of 2007-09," read the blog. 

“Analysis in the IMF’s October World Economic Outlook found that the labor market outlook for low-skilled workers and youth remains relatively bleak compared with other groups. This points to increasing inequality and higher vulnerability to poverty," it added. 

IMF said that due to the combined effects of these factors, countries may see economic consequences for decades through learning losses, lower productivity, and employment disruptions. 

“Pandemic-era students could sacrifice as much as $17 trillion in lifetime earnings, according to a recent report by the United Nations and the World Bank," it said. 

This comes in the backdrop of the IMF expressing concern about poor nations facing $35 billion bill as debt restructuring slips in 2022.

The urgency to avert what IMF chief Kristalina Georgieva terms “economic collapse" for some countries is growing after the G-20’s reprieve on debt-service payments for about 70 struggling nations -- in place since May 2020 -- ended in December.