The World Bank Group yesterday said developing countries are facing currency depreciation, and capital outflows challenges that could affect their future.
World Bank Group President David Malpass disclosed before at the Stanford Institute for Economic Policy Research (SIEPR) ahead of the 2022 Annual Meetings in Washington D.C.
“As we gather in this prestigious institution, a tough reality confronts the global economy – and especially the developing world. A series of harsh events and unprecedented macroeconomic policies are combining to throw development into crisis. This has consequences for all of us due to the interlinked nature of the global economy and civilizations around the world. The World Bank Group’s mission is to alleviate poverty and boost shared prosperity,” he said.
He said the bank’s financing to developing countries has expanded dramatically in recent years, especially for climate-related finance, which reached $31.7 billion in fiscal year 2022.
Malpass said these shockwaves have hit development at a time when many developing countries are also struggling in other areas: governance and rule of law; debt sustainability; climate adaptation and mitigation; and limited fiscal budgets to counteract the severe reversals in development from the COVID-19 pandemic, including in health and education.
“The human consequence of these overlapping crises is catastrophic. The COVID-19 pandemic – which alone led to over six million deaths – geopolitical conflicts, and extreme weather events have hurt countries and people worldwide, with the poor bearing the brunt, especially women and girls,” he said.
He said: “Evidence by the World Bank shows that 70 per cent of children in low- and middle-income countries are in learning poverty – which is the share of children who are unable to read or understand a basic text by age 10. COVID-19 worsened the global learning crisis and resulted in the worst shock to education and learning in recorded history.”
