Fiscal policy, equity and long-term growth in developing
countries were the major focus of this year’s spring meetings of the
World Bank and International Monetary Fund (IMF). BUKKY OLAJIDE was
there.
THE key standing committee of the World Bank Group have identified with the vision of the president, which seeks to reduce poverty massively among the population of people living on $1.25 per day in the developing nations of the world by at least by three per cent between now and year 2030.
Participants at this year’s Spring Meetings of the World Bank and IMF, equally outlined an ambitious agenda in this regard, suggesting a two-pronged approach to tackling the menace.
To them, the first step should be promotion of shared prosperity by fostering income growth of the bottom 40 percent of the population in every country. The second goal, implies sharing prosperity across generations, and that calls for bold action on climate change.
A new analysis of extreme poverty released by the World Bank recently, showed that there are 1.2 billion people living in extreme poverty (21 percent of the developing world population in 2010) and despite recent impressive progress, Sub-Saharan Africa still accounts for more than one-third of the world’s extreme poor.
World Bank Group President, Jim Yong Kim, no doubt, believes that the world could end extreme poverty within a generation, but this would be much harder than most people realized. He believes that he will take ingenuity, focus, commitment, and visionary leaders. ‘’But if we succeed, we will have accomplished one of mankind’s most historic accomplishments,’’ he said.
The yearly meetings are traditionally held in Washington every two years of three and to reflect the international character of the two institutions, while the third year’s deliberations hold in a member country. In addition to the meetings of the Boards of Governors, the Development Committee and the International Monetary and Financial Committee (IMFC) are officially convened. The Development Committee and the IMFC advise the Boards of Governors on issues of global concern, including the world economic outlook, poverty eradication, economic development, and aid effectiveness.
Around these meetings, the Bank and the IMF organize a number of fora to facilitate the interaction of governments and World Bank-IMF staff with civil society organizations, journalists, private sector executives, academics and representatives of other international organizations. Indeed, every effort is made to ensure that the yearly meetings provide a veritable forum for explaining to the public the activities, challenges and achievements of the two institutions. The live and interactive meetings are
At every Spring and Annual Meeting, the joint Bank-IMF Development Committee and the IMF's International Monetary and Financial Committee hold parleys to discuss progress on the work of the Bank and Fund. Also featuring are seminars, regional briefings and press conferences, focused on the global economy, international development, and the world’s financial markets. Plenary sessions of the World Bank and the IMF's Boards of Governors are only scheduled during the Annual Meetings in the autumn.
Taking a stock of global economy, the World Bank president said, more than four years after the global meltdown, high income countries still to struggle with high unemployment, weak growth, and economic fragility.
His words: ‘’The good news is that, taken as a whole, developing countries are doing relatively well, with growth expected to reach about 5.5 percent this year. This should strengthen to just under six percent by 2015. Indeed, developing countries are accounting for more than half of global growth.
‘’But too often we lose sight of the fact that this overall story hides a wide range of outcomes across countries. In Africa, about a quarter of the countries grew at seven percent or higher last year, and a number of them are among the fastest growing in the world. In East Asia and the Pacific, output is expanding rapidly amid fears of overheating and asset bubbles.
‘’But growth in several major middle income countries including Brazil, India, Russia and Turkey has slowed, in part, because of unresolved bottlenecks in these economies.
He observed that in the developing world, recovery has been more elusive, saying that this diversity of experiences among these countries meant that there was no definite prescription for policy, and external developments can no longer be seen as the principal source of problems.
Now more than ever, solutions needs to be found in domestic macroeconomic and structural policies that addressed distinct conditions in individual countries.
To end extreme poverty within a generation, at least three things must happen:
First, the high growth rate in the developing world over the past 15 years must accelerate.
Second, growth has to translate into poverty reduction and job creation and must be inclusive to curb inequality.
And, third, ‘’we must avert or mitigate potential shocks such as climate disasters or new food, fuel, and financial crises’’, he said.
In particular, doing better on growth means doing more of the kinds of reforms that have underpinned the strong Developing Country growth for past 15 years. That means eliminating bottlenecks; additional investment in infrastructure; and, to ensure that the poor participate in the benefits of growth, much greater investments in education and healthcare.
As we move ahead, we must also address climate change with the plan that matches the scope of the problem. Climate change is not just an environmental challenge, it is also a fundamental threat to economic development. Unless the world takes bold action now, an impending disastrous planet threatens to put prosperity out of reach of millions and roll back decades of development and poverty reduction.
We are also trying to contribute to these larger debates stable price regarding carbon and fossil fuel subsidies.
The Development Committee endorsed the World Bank Group’s goal to end extreme poverty within a generation as “ambitious”, saying that this endeavor by the Bank was a “historic opportunity” to make a difference. The Committee equally confirmed the Group’s vision to promote shared prosperity, adding these goals must be achieved without jeopardizing the environment, magnifying economic debt or excluding vulnerable people.
The World Bank Group President applauded the Committee’s support, noting that “I have no doubt that the world can end extreme poverty within a generation. But we cannot do it alone. It requires focus, innovation and commitments from everyone. This endorsement is an important step. If we succeed, together, we would have accomplished an historic milestone,” Kim said.
The 25-member Development Committee, which meets twice a year during the World Bank/IMF spring and annual meetings, said in its communiqué that reducing the percentage of people living on less than $1.25 a day to three percent by 2030 will require strong growth across the developing world, and translation of growth into poverty reduction to an extent not seen before in many low income countries. It will also require overcoming institutional and governance challenges, and investing in infrastructure and agricultural productivity.
“Ministers unequivocally supported Dr. Kim’s vision and stated that we can count on the World Bank Group as a partner in the endeavor of ending extreme poverty and boosting shared prosperity,” said Marek Belka, the Chairman of the Development Committee, adding “Dr. Kim renewed our zeal for the Bank Group's core mission of a world free of poverty. There is a historic opportunity at our reach to make critical progress.”
The communiqué also called on the Group to pay special attention to countries and regions with the highest incidence of poverty and Fragile and Conflict-Affected Situations (FCS), as well as to the specific challenges facing smaller states.
It also stressed that the goal of shared prosperity -- fostering income growth of the bottom 40 percent of the population in every country – will not be achieved without addressing inequality. Investments that create opportunities for all citizens and promote gender equality are an important end in their own right, as well as being integral to creating sustained economic growth. Shared prosperity also means focusing on those who, although not currently poor, but vulnerable to falling into poverty.
The role of the private sector in promoting growth and job creation was also captured in the communiqué. With an proper enabling environment, adequate infrastructure and policies that promote competition, entrepreneurship and job creation, the private sector can support shared prosperity and offer real opportunities to all citizens, especially women and young adults, it said.
At the meetings, Nigeria’s Finance Minister, Dr. Ngozi Okonjo-Iweala, stated that the macroeconomic fundamentals of her country were strong but not immune is vulnerability arising from the drop in crude oil output and prices, noting that should the trend continue, Nigeria could be losing on the average, about $1billion monthly.
She further told the IMF Managing Director, Ms Christine Lagarde, that there was no cause for alarm, stating that Nigeria had already accumulated a buffer of about $7 billion, which is handy in cushioning the expected revenue shortfall, promised that the budget remains on course.
Okonjo-Iweala reminded the head of the IMF that Nigeria would be rebasing its National Income Account and requested the Fund assistance in seting up an advisory board to supervise the process with a view to instilling global credibility.
On his part, CBN Governor Lamido Sanusi, in response to the recommendation of the IMF report that the Assets Management Corporation of Nigeria, AMCON, should be closed, argued that the Corporation should be allowed to complete the 10-year timeframe of existence. He explained that the model used in establishing AMCON showed that the Nigerian banking system would be able to recover all debts within the period.
THE key standing committee of the World Bank Group have identified with the vision of the president, which seeks to reduce poverty massively among the population of people living on $1.25 per day in the developing nations of the world by at least by three per cent between now and year 2030.
Participants at this year’s Spring Meetings of the World Bank and IMF, equally outlined an ambitious agenda in this regard, suggesting a two-pronged approach to tackling the menace.
To them, the first step should be promotion of shared prosperity by fostering income growth of the bottom 40 percent of the population in every country. The second goal, implies sharing prosperity across generations, and that calls for bold action on climate change.
A new analysis of extreme poverty released by the World Bank recently, showed that there are 1.2 billion people living in extreme poverty (21 percent of the developing world population in 2010) and despite recent impressive progress, Sub-Saharan Africa still accounts for more than one-third of the world’s extreme poor.
World Bank Group President, Jim Yong Kim, no doubt, believes that the world could end extreme poverty within a generation, but this would be much harder than most people realized. He believes that he will take ingenuity, focus, commitment, and visionary leaders. ‘’But if we succeed, we will have accomplished one of mankind’s most historic accomplishments,’’ he said.
The yearly meetings are traditionally held in Washington every two years of three and to reflect the international character of the two institutions, while the third year’s deliberations hold in a member country. In addition to the meetings of the Boards of Governors, the Development Committee and the International Monetary and Financial Committee (IMFC) are officially convened. The Development Committee and the IMFC advise the Boards of Governors on issues of global concern, including the world economic outlook, poverty eradication, economic development, and aid effectiveness.
Around these meetings, the Bank and the IMF organize a number of fora to facilitate the interaction of governments and World Bank-IMF staff with civil society organizations, journalists, private sector executives, academics and representatives of other international organizations. Indeed, every effort is made to ensure that the yearly meetings provide a veritable forum for explaining to the public the activities, challenges and achievements of the two institutions. The live and interactive meetings are
At every Spring and Annual Meeting, the joint Bank-IMF Development Committee and the IMF's International Monetary and Financial Committee hold parleys to discuss progress on the work of the Bank and Fund. Also featuring are seminars, regional briefings and press conferences, focused on the global economy, international development, and the world’s financial markets. Plenary sessions of the World Bank and the IMF's Boards of Governors are only scheduled during the Annual Meetings in the autumn.
Taking a stock of global economy, the World Bank president said, more than four years after the global meltdown, high income countries still to struggle with high unemployment, weak growth, and economic fragility.
His words: ‘’The good news is that, taken as a whole, developing countries are doing relatively well, with growth expected to reach about 5.5 percent this year. This should strengthen to just under six percent by 2015. Indeed, developing countries are accounting for more than half of global growth.
‘’But too often we lose sight of the fact that this overall story hides a wide range of outcomes across countries. In Africa, about a quarter of the countries grew at seven percent or higher last year, and a number of them are among the fastest growing in the world. In East Asia and the Pacific, output is expanding rapidly amid fears of overheating and asset bubbles.
‘’But growth in several major middle income countries including Brazil, India, Russia and Turkey has slowed, in part, because of unresolved bottlenecks in these economies.
He observed that in the developing world, recovery has been more elusive, saying that this diversity of experiences among these countries meant that there was no definite prescription for policy, and external developments can no longer be seen as the principal source of problems.
Now more than ever, solutions needs to be found in domestic macroeconomic and structural policies that addressed distinct conditions in individual countries.
To end extreme poverty within a generation, at least three things must happen:
First, the high growth rate in the developing world over the past 15 years must accelerate.
Second, growth has to translate into poverty reduction and job creation and must be inclusive to curb inequality.
And, third, ‘’we must avert or mitigate potential shocks such as climate disasters or new food, fuel, and financial crises’’, he said.
In particular, doing better on growth means doing more of the kinds of reforms that have underpinned the strong Developing Country growth for past 15 years. That means eliminating bottlenecks; additional investment in infrastructure; and, to ensure that the poor participate in the benefits of growth, much greater investments in education and healthcare.
As we move ahead, we must also address climate change with the plan that matches the scope of the problem. Climate change is not just an environmental challenge, it is also a fundamental threat to economic development. Unless the world takes bold action now, an impending disastrous planet threatens to put prosperity out of reach of millions and roll back decades of development and poverty reduction.
We are also trying to contribute to these larger debates stable price regarding carbon and fossil fuel subsidies.
The Development Committee endorsed the World Bank Group’s goal to end extreme poverty within a generation as “ambitious”, saying that this endeavor by the Bank was a “historic opportunity” to make a difference. The Committee equally confirmed the Group’s vision to promote shared prosperity, adding these goals must be achieved without jeopardizing the environment, magnifying economic debt or excluding vulnerable people.
The World Bank Group President applauded the Committee’s support, noting that “I have no doubt that the world can end extreme poverty within a generation. But we cannot do it alone. It requires focus, innovation and commitments from everyone. This endorsement is an important step. If we succeed, together, we would have accomplished an historic milestone,” Kim said.
The 25-member Development Committee, which meets twice a year during the World Bank/IMF spring and annual meetings, said in its communiqué that reducing the percentage of people living on less than $1.25 a day to three percent by 2030 will require strong growth across the developing world, and translation of growth into poverty reduction to an extent not seen before in many low income countries. It will also require overcoming institutional and governance challenges, and investing in infrastructure and agricultural productivity.
“Ministers unequivocally supported Dr. Kim’s vision and stated that we can count on the World Bank Group as a partner in the endeavor of ending extreme poverty and boosting shared prosperity,” said Marek Belka, the Chairman of the Development Committee, adding “Dr. Kim renewed our zeal for the Bank Group's core mission of a world free of poverty. There is a historic opportunity at our reach to make critical progress.”
The communiqué also called on the Group to pay special attention to countries and regions with the highest incidence of poverty and Fragile and Conflict-Affected Situations (FCS), as well as to the specific challenges facing smaller states.
It also stressed that the goal of shared prosperity -- fostering income growth of the bottom 40 percent of the population in every country – will not be achieved without addressing inequality. Investments that create opportunities for all citizens and promote gender equality are an important end in their own right, as well as being integral to creating sustained economic growth. Shared prosperity also means focusing on those who, although not currently poor, but vulnerable to falling into poverty.
The role of the private sector in promoting growth and job creation was also captured in the communiqué. With an proper enabling environment, adequate infrastructure and policies that promote competition, entrepreneurship and job creation, the private sector can support shared prosperity and offer real opportunities to all citizens, especially women and young adults, it said.
At the meetings, Nigeria’s Finance Minister, Dr. Ngozi Okonjo-Iweala, stated that the macroeconomic fundamentals of her country were strong but not immune is vulnerability arising from the drop in crude oil output and prices, noting that should the trend continue, Nigeria could be losing on the average, about $1billion monthly.
She further told the IMF Managing Director, Ms Christine Lagarde, that there was no cause for alarm, stating that Nigeria had already accumulated a buffer of about $7 billion, which is handy in cushioning the expected revenue shortfall, promised that the budget remains on course.
Okonjo-Iweala reminded the head of the IMF that Nigeria would be rebasing its National Income Account and requested the Fund assistance in seting up an advisory board to supervise the process with a view to instilling global credibility.
On his part, CBN Governor Lamido Sanusi, in response to the recommendation of the IMF report that the Assets Management Corporation of Nigeria, AMCON, should be closed, argued that the Corporation should be allowed to complete the 10-year timeframe of existence. He explained that the model used in establishing AMCON showed that the Nigerian banking system would be able to recover all debts within the period.
