20% of the countries that tapped into the World Bank’s fund for the poorest yet to show any growth
October 6, 2014: In an effort to warn the global economy against considerable downside risk, finance and development ministers from around the world will meet in Washington DC on October 11, 2014.
With Europe still grappling with deflation, Japan not far from recession and a slow economy in China, there are worries that recovery from the deep 2007-2009 crisis is losing traction.
“The global economy remains on a cautious watch and is subject to considerable downside risks that could dent global growth and confidence,” said the draft of a communiqué prepared for release by the International Monetary Fund-World Bank Development Committee.
“The path to economic growth, job creation and shared prosperity will require a sustained multilateral effort to protect the poorest and most vulnerable.”
The statement said 20% of the impoverished countries receiving aid from the World Bank’s fund for the poorest have not shown per capita output growth since 2000 and are particularly in danger of being hit hard if the global recovery founders. It urged the bank and the International Monetary Fund (IMF) to monitor low income countries’ vulnerability to shocks, including the dangers their public debts might pose.
On other topics, the communiqué draft called for the two leading multilateral agencies, which are holding their annual meetings in Washington this week, to expand their emphasis on gender equality and climate change while helping countries with energy supplies and infrastructure investment.