Current global macro policies risk a long recession, says World Bank president

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KUALA LUMPUR (Nov 16): The developing world faces hunger, poverty, unsustainable debt, and learning poverty above 70%, according to World Bank Group President David Malpass.

In his remarks at the G20 Leaders’ Summit in Indonesia that was published on bank’s website on Tuesday (Nov 15), Malpass said climate change makes all of these burdens worse.

He said farmers face droughts and floods.

“In poor countries, they face severe shortages of fertilizer and diesel.

“Underinvestment blocks access to electricity and clean water. Current global macro policies create a permanent drain on global capital, risking a long recession,” he said.

Health

Commenting on health issues, Malpass said the Covid-19 pandemic caused massive reversals in development—loss of lives and jobs; increased poverty; and school closures that resulted in years of losses in learning, child nutrition, and girls’ advancement.

“The world is still facing multiple crises—yet we cannot neglect preparing for the next health crisis,” he said.

Malpass said the World Bank’s pandemic trust fund will support low- and middle-income countries and regions to become better prepared for global health crises and incentivize countries to increase their own efforts.

“It will make dedicated investments in Pandemic Prevention, Preparedness and Response, helping make the world safer.

“It creates a global public good, with benefits shared by all, across borders,” he said.

Malpass said over US$1.4 billion by 24 donors have already been committed, and additional pledges are forthcoming.

“The US$30 billion of World Bank investments in the sector support a One-Health approach that integrates human, animal, and environmental health, with better data and early warning systems, digital emergency preparedness and capacity building,” he said.

 

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