The Department of Finance (DOF) called on the World Bank Group (WBG) and the International Monetary Fund (IMF) to escalate their support to developing countries in addressing challenges that jeopardize their economic growth.
This includes providing swift access to short-term liquidity and sustainable long-term financing options.
“Alarmingly, one in every four developing countries is now poorer than before the pandemic. Any slowdown in global economic performance will surely hit the developing economies the hardest. This poses a grave threat to the peace, economic security, and prosperity of all our people,” DOF Secretary Ralph Recto said in his opening remarks when he presided over the Intergovernmental Group of Twenty-Four last April 16 as chair of the Board of Governors.
Recto underscored the need for innovative and responsive financing solutions that will help developing countries navigate the turbulent waters ahead.
“The ambitious replenishment, expedited disbursement and efficient delivery of the International Development Association, or IDA21, is an urgent matter as it serves as a critical lifeline for developing nations,” Recto said.
IDA is part of the WBG that provides grants and low-interest loans for the world’s low-income countries.
According to the finance chief, without improvements to financing conditions in the short term, decades of individual and global efforts to eradicate poverty and inequality, combat climate change and invest in growth-enhancing infrastructure projects will be put to a halt, if not reversed.
“We are counting on this meeting to set unprecedented multilateral cooperation. Together, let us find transformative solutions that will reclaim our gains and steer the global economy faster and further on the road to inclusive and irreversible growth,” Recto said.
In response, IMF managing director Kristalina Georgieva and WBG president Ajay Banga both shared the institutions’ respective programs aimed at providing wider access to concessional financing and supporting developing countries in sustaining productivity, enhancing long-term growth prospects and increasing resilience to economic shocks.
