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BRIEF May 13, 2020

Smart Containment: How Low-Income Countries Can Tailor Their COVID-19 Response

Stephan Bachenheimer / World Bank

Low-income countries will have a much harder time putting their economies in a ¡°¡± in response to the coronavirus pandemic (COVID-19). They are home to many of the extreme poor, who, for the most part, have no option but to live in overcrowded conditions with limited access to . They work in the informal sector, often for a daily wage, depend heavily on public service provision, and have limited savings and no access to credit. For many, , and not working comes at the expense of food and other necessities. 

Therefore, as is widely acknowledged, low-income countries (LIC) face especially difficult choices when it comes to the response to COVID-19. As opposed to widespread lockdowns, we argue that a policy of ¡°smart containment,¡± based on the idea of graded lockdowns, can work, if accompanied by considerable policy flexibility and intense data support. We present a three-part argument. First, we highlight reasons why a policy of wholesale lockdowns will be costly and potentially harmful for many, especially the poor. Second, we describe a policy of smart containment. Third, we discuss what it implies in terms of government actions.