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External Shock Financing and Economic Development: Implications for Future Reforms to the Global Financing Architecture
Large overlapping global shocks like pandemics and wars can severely damage national economies and risk long-term developmental impacts, particularly for low- and middle-income countries (L&MICs). The magnitude and persistence of effects vary depending on a country's exposure, resilience, and policy response options. For many L&MICs with limited domestic resources and policy flexibility, an effective global financial system for external shock assistance is critical. […]