Various actors, in the international financial ecosystem, are converging in Washington DC this week (April 10-16, 2023) in what is commonly known as the Annual World Bank Spring meetings. Convened by the Boards of Governance of the World bank and IMF, the meetings have converged bankers, treasury heads and ministers of finance, parliamentarians, private sector leaders, representatives of civil society organizations, experts and academics among others. They target to discuss the world economic outlook and other issues of global concern including poverty eradication, economic development, sovereign debt sustainability and climate action.
Delegates in the 2022 Annual and Spring Meetings | Source: IMF
This happens against the backdrop of a globe – encumbered by polycrises. Extreme poverty has risen for the first time this century, and food and fuel prices remain high due to inflationary pressures largely driven by the war in Ukraine and the impacts of Covid-19 pandemic. Increasing vulnerability to climate change demands attention to disaster risk reduction and investment in climate sensitive technologies. However, in the parts of the world where the polycrises manifest the most, governments struggle with low ability to mobilise development finance. This has precipitated a sovereign debt crisis that is ensuing in many developing countries especially in sub-Saharan Africa where governments are now spending more on debt servicing than development.
Despite this, the World Bank, which is expected to provide leadership in tackling these issues has been criticised for being too slow, unresponsive and risk-averse. Whereas the Bank played an instrumental role in the 2000s by providing leadership, funding and technical support that was critical in tackling global poverty, it is accused, today, of being weak, non-inclusive and ineffective in tackling the crises of this decade.
Coincidently, the 2023 Spring Meetings proceed at a time when the Bank is in transition, prospecting a new President. The US government has nominated former CEO of MasterCard – Ajay Banga to succeed David Malpass as World Bank President. He is touted to be a proponent of inclusive and sustainable growth (which are things the bank ought to be concerned about) and pro-reform of the bank. The Spring Meetings this year therefore herald a watershed moment – during which the multiplicity of stakeholders must rise to the occasion to get concessions about reform of the World Bank and policy commitments towards addressing the multiple crises the world faces today.
From an African perspective, many argue that reform of the World Bank is long overdue. Now more than ever, the world deserves a review of the governance and voting powers of the World Bank and IMF to promote inclusion and enhance their leadership and effectiveness.
Here are my thoughts about some wins that delegates participating in the meetings should pursue and advocate for:
Okwaroh is Executive Director and Research Associate at the Africa Centre for People Institutions and Society (ACEPIS)
Various actors, in the international financial ecosystem, are converging in Washington DC this week (April 10-16, 2023) in what is commonly known as the Annual World Bank Spring meetings. Convened by the Boards of Governance of the World bank and IMF, the meetings have converged bankers, treasury heads and ministers of finance, parliamentarians, private sector leaders, representatives of civil society organizations, experts and academics among others. They target to discuss the world economic outlook and other issues of global concern including poverty eradication, economic development, sovereign debt sustainability and climate action.
Delegates in the 2022 Annual and Spring Meetings | Source: IMF
This happens against the backdrop of a globe – encumbered by polycrises. Extreme poverty has risen for the first time this century, and food and fuel prices remain high due to inflationary pressures largely driven by the war in Ukraine and the impacts of Covid-19 pandemic. Increasing vulnerability to climate change demands attention to disaster risk reduction and investment in climate sensitive technologies. However, in the parts of the world where the polycrises manifest the most, governments struggle with low ability to mobilise development finance. This has precipitated a sovereign debt crisis that is ensuing in many developing countries especially in sub-Saharan Africa where governments are now spending more on debt servicing than development.
Despite this, the World Bank, which is expected to provide leadership in tackling these issues has been criticised for being too slow, unresponsive and risk-averse. Whereas the Bank played an instrumental role in the 2000s by providing leadership, funding and technical support that was critical in tackling global poverty, it is accused, today, of being weak, non-inclusive and ineffective in tackling the crises of this decade.
Coincidently, the 2023 Spring Meetings proceed at a time when the Bank is in transition, prospecting a new President. The US government has nominated former CEO of MasterCard – Ajay Banga to succeed David Malpass as World Bank President. He is touted to be a proponent of inclusive and sustainable growth (which are things the bank ought to be concerned about) and pro-reform of the bank. The Spring Meetings this year therefore herald a watershed moment – during which the multiplicity of stakeholders must rise to the occasion to get concessions about reform of the World Bank and policy commitments towards addressing the multiple crises the world faces today.
From an African perspective, many argue that reform of the World Bank is long overdue. Now more than ever, the world deserves a review of the governance and voting powers of the World Bank and IMF to promote inclusion and enhance their leadership and effectiveness.
Here are my thoughts about some wins that delegates participating in the meetings should pursue and advocate for:
Okwaroh is Executive Director and Research Associate at the Africa Centre for People Institutions and Society (ACEPIS)