TRADE FINANCE TALKS
7.4
ICC SOS – Save Lives. Save Livelihoods. Save Our SMEs
JOHN W. H. DENTON AO Secretary General International Chamber of Commerce (ICC)
The coronavirus crisis has affected MSMEs disproportionately and has revealed their vulnerability to the supply and demand shock, particularly around liquidity and cash flow. It’s estimated that 40-60% of small businesses might not reopen after the Coronavirus pandemic. 200 million full-time job losses are expected between April and July 2020. TFG’s Deepesh Patel (DP) heard from John W. H. Denton AO (JD), Secretary General, International Chamber of Commerce (ICC). MSMEs are the backbone of the global economy, ensuring the day-to-day provision of so many goods and services around the world. They’re estimated to contribute around 80% of OECD employment in many countries around the world, employing billions of people. The novel coronavirus is an unprecedented health and economic crisis, forcing millions of MSMEs to close up shop, and some say, that on average, MSMEs have just 30 days of working capital to last in such crises. World Bank
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Group President David Malpass recently said that “The pandemic and shutdown of advanced economies could push as many as 60 million people into extreme poverty – erasing much of the recent progress made in poverty alleviation.” More action is needed from governments, private sector leaders and international institutions to ensure the continued viability of our MSMEs.
ICC’S SAVE OUR SMES INITIATIVE (SOS) DP: Tell me about ICC’s SOS or ‘Save our SMEs’ campaign and how you’re working with other ICC national committees to amplify this campaign all around the world? JD: Well, thanks a lot. I mean, we launched SOS – Save Our SMEs about two weeks into the COVID-19 crisis. And, as you know, one of the problems with COVID-19, is it’s not only pernicious and cruel in its human effects, the way it plays out is deeply troubling as well. It’s asynchronous. So it’s not as though it’s coordinated across the world. It happens at different times and at different intensities in different parts of the world. And so in the Northern Hemisphere, obviously, I’m sitting in Paris – we didn’t necessarily feel the economic effect as quickly as we felt the health effect. tradefinanceglobal.com
