Finance Secretary Benjamin Diokno has called on the World Bank Group (WBG) and the International Monetary Fund (IMF) to scale up support in response to the global polycrisis.
Diokno stressed the role of WBG and the IMF in supporting countries, especially emerging markets and developing economies, in combating the multiple global crises.
“The polycrisis we’re facing threatens to reverse the years of progress we’ve made towards poverty reduction and shared prosperity. Together, we must be decisive in tackling these challenges,” said Diokno, speaking as the first vice-chair of the G-24 Bureau and the World Bank governor for the Philippines, during his intervention at the 2023 Intergovernmental Group of Twenty-Four Ministerial Meeting last April 11 in Washington DC.
The Intergovernmental Group of Twenty-Four on International Monetary Affairs and Development (G-24) coordinates the position of developing countries on monetary and development issues in the deliberations and decisions of the Bretton Woods institutions, such as the World Bank and the IMF.
Diokno raised four areas that need to be addressed — inflation, climate, international tax reform and ongoing reforms to the Bretton Woods institutions.
He shared that Philippine inflation eased to 7.6 percent in March 2023 from 8.6 percent in February. However, it continues to remain at elevated levels due to high food and energy prices.
Diokno also stressed the urgent need to respond adequately to the climate crisis, saying, “This is clearly one of the biggest adversaries of development. When disaster strikes, climate-vulnerable countries such as the Philippines stand to lose the most.”
With this, he called for heightened global cooperation to facilitate a just green transition and for multilateral development banks to scale up climate investments by expanding private sector participation.
Diokno also underscored the role of international tax reform and domestic resource mobilization in financing sustainable and inclusive growth.
“We fully support the continued efforts of the G-24 Tax Working Group to promote peer dialogue and cooperation on key tax challenges,” he said.
Lastly, Diokno mentioned that ongoing reforms to Bretton Woods institutions through the WBG Evolution Roadmap and the IMF 16th General Review of Quotas create the opportunity to reinvigorate the multilateral system.
He emphasized that the proposed reforms to the Bank’s financial and operating models should not be at the cost of International Bank for Reconstruction and Development borrowers such as the Philippines.
As for the IMF 16th General Review of Quotas, Diokno said enhancing the voice and quota of emerging markets and developing economies at the IMF should be a key consideration in recognition of their growing share in the world economy.
“We look forward to continued discussions on these efforts that will arm the World Bank and the IMF to better support economies against future shocks,” he said. – Angela Celis
