Daily Management Review

Concerns About Global Trade, Investment Expressed By Development Committee


Concerns About Global Trade, Investment Expressed By Development Committee
There has been a weakening of growth in global trade as well as softening in strength of investment prospects, said the Development Committee, which is a ministerial-level forum of the World Bank and the International Monetary Fund (IMF). The body also called on governments and countries to take measures to mitigate these concerns.
The Development Committee stressed on the important role of international trade and investment serving as drivers for global economic growth, higher productivity, innovation, job creation and sustainable development, in a communique issued by the body after the end of the institutions' Spring Meetings in Washington.
"Debt vulnerabilities persist, and policy uncertainty is weighing on confidence," the communique said. "We stress the importance of adopting growth-enhancing policies while containing risks and protecting the most vulnerable."
The World Bank and IMF's "multipronged approach" with its borrowers and creditors found strong support from the committee. It said that this approach played an important role in the enhancement of the recording, monitoring, and reporting of public and private debt. This approach by the World Bank and IMF would also be able to strengthen creditor coordination in debt restructuring situations, drawing on existing fora.
"We call on both institutions to work jointly with policy makers to identify the right balance, given country circumstances, between supporting demand and rebuilding fiscal space; to help countries improve debt management capacity, sustainability, and transparency; and to strengthen domestic resource mobilization," the communique said.
The "key role" played by the private sector in providing sustainable solutions for the developmental challenges, creation of markets, mobilization of investment and creating jobs was also emphasized in the communiqué.
The committee also gave a call to all of the parties related to the issue to get together to motivate the private sector to provide solutions and answers as well as resources and in leveraging reforms in multiple sectors and reducing and even eliminating risks associated with investments.
The twin goals set for itself by the World Bank and other similar global financial institutions of ending extreme poverty and enhancement of shared prosperity were also strongly supported by the committee which is a representative body of 189 member countries.
The mission of the multilateral development institution is "more urgent that ever", stressed the new president of the World Bank, David Malpass, in a statement after the Development Committee meeting.
"It is critically important that we work tirelessly to foster broad-based growth, raise median incomes, create jobs, and fully incorporate women and young people in economies, to support a stronger, more stable global economy for everyone," Malpass said.