World Bank Group President David Malpass speaking during the Development Committee – 2022 Annual Meetings says slower global growth that's been weighing down countries, particularly, developing countries.
He says the World Bank has to address such longer-term crises as it can't only focus on the immediate.
"One is slower global growth that's been weighing down countries, particularly, developing countries. The long-term outlook is modest at best and could be even slower. There has been a severe concentration of capital in the world, adding to inequality, which needs to be addressed.
"We also need to make progress on debt, debt reduction, and transparency. The debt service expected in 2022 from the IDA countries, the poorest countries in the world, is $44 billion and that is more than the combined resources of the Bank and IMF to these counties," he says.
This leaves developing countries without the fiscal space for education, climate adaptation, and other necessary means.
Global Growth And Debts
He says there are several changes on debt that need to be discussed. "We advocate for debt transparency; a standstill for countries that are applying for Common Framework treatment; inclusion of all creditors from the beginning of the process; a more prominent role for debtor countries; earlier sharing of the parameters of debt relief and debt sustainability analyses; and finally, comparable treatment among official bilateral and commercial creditors using a common discount rate. We need much more progress on debt," he says.
Another long-term challenge is the need for progress on climate change. It's been a prominent topic of discussion throughout the Annual Meetings, he adds.
"We welcome greatly the U.S. contribution to the Clean Technology Fund that was announced this week. We have launched the SCALE trust fund, which we will continue to provide details and invite discussion on, with the goal of achieving verifiable emissions reduction.
"This has been the missing link in the global system to achieve meaningful emissions reduction," he says.