Minister of International Cooperation H.E. Dr. Rania A. Al-Mashat emphasizes the importance of international cooperation and coordination to overcome climate challenges, and current shocks impacting development efforts.
H.E. Dr. Rania A. Al-Mashat noted that international financial institutions should develop mechanisms that address economic and social challenges facing developing and emerging countries.
The Minister of International Cooperation H.E. Dr. Rania A. Al-Mashat participated in the Intergovernmental G24 Ministers & Governors Meeting, which is being held in conjunction with the World Bank Group and International Monetary Fund’s 2022 Spring Meetings. This included the participation of Kristalina Georgieva, Managing Director of the IMF, and David Malpass, President of the WBG.
The meeting witnessed discussions on the international economic situation; the various challenges facing development efforts globally, especially developing and emerging countries; the repercussions of the COVID-19 pandemic; and climate challenges.
Al-Mashat pointed to the risks surrounding the current global economic situation due to high inflation rates, supply chain challenges, and the Russian-Ukrainian crisis. This necessitates the need for continuous international cooperation and coordination to develop solutions, and support from international financial institutions, the IMF, and the WBG in developing and emerging countries.
The Minister explained that the aforementioned challenges cause a multiplier effect, especially as they coincide with the global plans to develop innovative solutions to overcome and mitigate the effects of climate changes. Al-Mashat added that the current time requires effective international cooperation, and continued joint action to achieve sustainable development.
Al-Mashat also said that the world needs effective private sector participation across all countries to implement development projects and support government efforts in the national agenda. The Minister noted the importance of the International Finance Corporation (IFC) in developing mechanisms to address economic and social challenges, and to empower countries, especially emerging and developing economies, whilst encouraging private sector participation.
It is worth noting that the G24 meeting was chaired by the president of the Central Bank of Guatemala, Sergio Francisco Recinos Rivera, who stressed the importance of continued, and close, multilateral cooperation to maintain rule-based trade, food and energy security, financial stability, and increasing financing for developing economies.
The G24 Communique called for urgent and stronger global responses to COVID-19 vaccine access and distribution, especially in low-income economies, explaining that countries should overcome supply barriers by facilitating timely cross border flows of vaccine and treatments, and sharing technologies to enhance their supply. The communique also calls for the WBG and other multilateral development banks to strengthen their balance sheets to the fullest extent possible, boosting lending capacity while preserving financial prudence and resilience.
The communique also called for an increase in funding provided by the multilateral development banks to support public investments needed to stimulate post-pandemic recovery, to address the main drivers of inequality, to confront the education crisis, and to prevent deep economic impacts.
The G24 also called on the WBG to develop a medium-term strategy for middle-income countries (MICs) considering their evolving landscape and circumstance, as many MICs face challenges in transforming their economies to improve their medium-term growth prospects and reduce high levels of poverty and inequality.
More Information: https://www.imf.org/en/News/Articles/2022/04/19/communique-sm2022-intergovernmental-group-of-24-on-international-monetary-affairs-and-development