The 2024 Annual Meetings of the World Bank and the International Monetary Fund (IMF) discussed the global macroeconomic and financial impacts of current wars and conflicts – and ways to deepen cooperation to better address countries’ development priorities and needs.
The Annual Meetings took place from 21-26 October in Washington, D.C., US, where the Development Committee and the International Monetary and Financial Committee (IMFC) also convened.
The Development Committee Chair’s Statement, which reflects the views of the majority of the members, acknowledges the financing and other challenges developing countries continue to face, including lingering inflationary pressures, food and nutrition insecurity, and limited fiscal space, as well as climate change, pollution, water and energy scarcity, and biodiversity loss. It notes that these challenges are particularly acute for small states and countries affected by fragility, conflict, and violence. Against this backdrop, the Statement highlights the members’ commitment to a world free of poverty on a livable planet, in support of the SDGs.
Noting that that the World Bank Group’s (WBG) climate finance has reached 44% of total financing, the Statement welcomes the deepening cooperation between the WBG and the IMF to: identify climate challenges and policy priorities; implement reforms with partners; and support country-led platforms upon request. Welcoming the WBG’s role as interim trustee and host of the Loss and Damage Fund, the members look forward to the 2024 UN Climate Change Conference (UNFCCC COP 29) “where climate finance discussions will be of utmost importance.”
Recognizing the heavy debt burdens felt in many developing countries, the members also underscore the importance of domestic resource mobilization, and the key role of the private sector in creating jobs and economic transformation, particularly for women and youth.
During the Annual Meetings, the World Bank announced a set of actions and goals that aim to boost economic opportunities for more women, including targets around broadband, social protection, and access to capital for women.
A new high-level council met for the first time to seek solutions to generate jobs for young people. According to the World Bank, 1.2 billion people in emerging markets will become working-age adults over the next ten years. Meanwhile, the job market is projected to offer only 420 million spots. The Jobs Council, co-chaired by former President Michelle Bachelet of Chile and President Tharman Shanmugaratnam of Singapore, is tasked with helping bridge this gap. “The best way to put a nail in the coffin of poverty is to give people the hope, the optimism, the dignity of a job,” said World Bank Group President Ajay Banga.
The IMFC Chair’s Statement underscores the members’ commitment to multilateral cooperation to promote global prosperity and address shared challenges. It emphasizes that “[s]ecuring a soft landing and breaking from the current low growth-high debt path are the policy priorities for the global economy.” According to the Statement, the members “remain committed to international cooperation to improve the resilience of the global economy and build prosperity, while ensuring the smooth functioning of the international monetary system.”
In a communiqué, the Intergovernmental Group of 24 on International Monetary Affairs and Development (G-24), which coordinates the position of developing countries on monetary and development issues in the IMFC and the Development Committee, among other relevant international fora, urges for a comprehensive reform of the sovereign debt framework that addresses debt vulnerabilities in low-income countries (LICs) and middle-income countries (MICs) “in an effective, comprehensive and systematic manner.” The G-24 emphasizes the need for accelerated climate action, a concrete climate finance goal that is commensurate with the pressing challenges, and faster progress on the operationalization and capitalization of the Loss and Damage Fund at COP 29.
A consistent theme throughout the Annual Meetings was the International Development Association (IDA), ahead of its replenishment meeting in December. Spain announced an early financial pledge of EUR 400 million, representing a 40% increase in commitment. In September, Denmark also announced a 40% increase in pledge.
Other announcements included a new level of investment aiming to double the World Bank’s agri-finance and agribusiness commitments to USD 9 billion annually by 2030 and the unveiling of the new WBG Scorecard. [Annual Meetings World Bank Webpage] [Annual Meetings IMF Webpage]