The world's poorest countries should consider launching a $465 billion cash handout programme to fight the coronavirus, a UN report says

• Handing out temporary free money to people in developing nations could enable 3 billion people to stay home and slow the spread of coronavirus, the United Nations said.  
• If implemented, these cash handouts could cost developing nations an overall $199 billion a month. But a debt suspension initiative could help them reallocate funds for emergency measures.
• "Bailouts and recovery plans cannot only focus on big markets and big business," UNDP administrator Achim Steiner said.
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The world's poorest countries should consider launching a massive programme of free cash handouts worth as much as $465 billion to help slow the spread of coronavirus, according to a report published Thursday by the United Nations Development Programme. 

"It is urgent and only fair to provide shock-resistant transfers" in the form of temporary cash handouts, the report said.

Giving cash payments to citizens would allow as many as 3 billion people to stay at home from work, slowing the spread of the virus in developing nations, where healthcare provision is often less widespread.

The UNDP's report found an interim basic income would amount to between 0.27% and 0.63% of their combined gross domestic products.

It proposed three possible ways of creating basic income in poorer nations, which would cost at least $200 billion, and as much as $465 billion.

• Top-up on existing average income up to an economic vulnerability limit in each country — costing $199.9 billion.
• Lump-sum transfers that are sensitive to cross-country differences in the median standard of living — costing $257 billion.
• Uniform lump-sum transfers regardless of the country people live in — costing $465 billion.

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A six-month basic income would only require 12% of the total financial response to the pandemic.

"Bailouts and recovery plans cannot only focus on big markets and big business," UNDP administrator Achim Steiner said in a statement.

"A temporary basic income might enable governments to give people in lockdown a financial lifeline, inject cash back into local economies to help keep small businesses afloat, and slow the devastating spread of COVID-19," he said.

It would be problematic for countries to find a way to pay for this provision.

But the UNDP said a "comprehensive debt standstill," or a debt suspension program, for developing countries could help them reallocate the funds they use into emergency measures in order to combat COVID-19.

In April, the Group of 20 leading economies called for a Debt Service Suspension Initiative for the poorest countries to help them manage the crisis. 

As of July 2020, 42 countries have requested help under the initiative, and $5.3 billion in repayments have been suspended.

Former 2020 US presidential candidate Andrew Yang and Dutch historian Rutger Bregman have been vocal advocates of a universal basic income, and not just for during times of crisis.

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