At the Global Parliamentary Conference 2016, the perspectives of parliamentarians from 70 countries energized the debate before the Bank's and the Fund's Spring Meetings. From left to right, on the Preston Auditorium stage: Jeremy Lefroy, a Member of Parliament in the U.K., who served as the conference chairman; IMF Managing Director Christine Lagarde; and World Bank President Jim Yong Kim.
Did you happen to miss the Davos conference over the winter? I feel your pain: Somehow, for the umpteenth year in a row, my ticket to the World Economic Forum in Davos must have gotten lost by the Postal Service, too.
Not to worry, however: Twice a year, in April and October, Washington’s motto might as well be “Davos Every Day” – as the great and the good of globalization gather for the formal meetings of the World Bank Group and the International Monetary Fund.
The Bretton Woods siblings are just-now recovering from their semiannual tsunami of scholarship and diplomacy, with still-dazed staff members sorting through their accumulated post-Meetings mountains of newly published policy monographs, economic analyses and deepthink datapoints. This spring’s sprint focused, as is customary, on the speeches, statements and seminars with the Bank’s and the Fund’s scholars, along with the insights of the institutions’ core constituents: the Finance Ministers and central-bank governors who oversee their countries’ daily economic policymaking.
But there was an additional governance-focused feature at this spring's gathering: Meetings-goers also gained the valuable perspective of the almost 200 lawmakers and observers from 70 countries who convened in Washington, for just the second time, for the annual Global Parliamentary Conference. The gathering was held under the auspices of the Bank- and Fund-sponsored Parliamentary Network, which is now chaired by Jeremy Lefroy, a member of the U.K.’s House of Commons representing Stafford.
Hearing the viewpoints among the lawmakers, just before the executive-branch officials began the Spring Meetings formalities, provided Washingtonians a chance to take the pulse of an additional cohort of opinion leaders whose work is indispensable in delivering effective governance. The conference first brought the parliamentarians to Washington in 2015 – and now the Parliamentary Network is aiming to make Washington the venue for their conference every year.
Linking the lawmakers’ conference with the meetings in Washington will provide a valuable opportunity for the parliamentarians to hear more about the latest research findings of the Bank and the Fund. Moreover, it will help the Bank’s and the Fund’s headquarters staffs in Washington hear, more directly, about the policy priorities and development ideas of the leaders who frame their countries’ laws – some of whom may someday, in their turn, become the Ministers and policymakers who lead their countries’ executive-branch agencies.
Spring Meetings 2016
Questions like those – focusing on the private sector as the principal driver of growth, with deft public policy as an indispensable catalyst – inspired a dialogue among some of the developing world’s most experienced policymakers at a major forum, “Powering Up Growth: Ideas for Beating the Slowdown,” during the recent Spring Meetings of the World Bank Group and the International Monetary Fund. All four government Ministers on the panel – from both commodity-exporting and -importing countries – voiced a sense of urgency, describing their efforts to attract private investment to spur job creation, amid a global economy that seems destined for prolonged weakness.
Before the policymakers ascended the Preston Auditorium stage, sobering updates had arrived from the Bank and the Fund: The Bank’s latest forecast for global growth has been lowered from 2.9 percent to 2.5 percent – with the caveat that this latest forecast is subject to further downside risks. That downward revision is in parallel with the Fund’s similar projection, which sees global growth this year in the neighborhood of just 3 percent.
Policymakers worldwide are eager to explore any option to try to lay the foundation for an eventual return to a long-term economic expansion. It was clear that the panelists in the “Powering Up Growth” event – which was convened by Jan Walliser, the Vice President for the Bank Group’s practice group on Equitable Growth, Finance and Institutions (EFI) and organized by the Global Practice for Macroeconomics and Fiscal Management (MFM) – were focused on long-term structural changes that can energize the private sector’s ability to drive growth.
The panelists – from Bolivia, Pakistan, Angola and Ukraine – represented countries from different regions and at various levels of economic development, but they shared a determination to jump-start growth through reforms that will strengthen the private sector’s long-term confidence. The Ministers, at times, seemed to envision opportunities, not just for short-term structural adjustment of their priorities or medium-term structural reform of their policy farmeworks, but for far-reaching structural transformation of their economies and societies.
Saturday’s Global Infrastructure Forum was full of firsts: this unprecedented daylong gathering in Washington, DC brought together the leaders of the multilateral development banks (MDBs), as well as development partners and representatives of the G20, G-24, and G-77, the OECD, the Global Infrastructure Hub and the United Nations. All shared the goal of enhancing multilateral collaboration to improve infrastructure delivery globally.
As part of the 2016 World Bank Group-International Monetary Fund Spring Meetings held this past week in Washington, D.C., a fascinating panel discussion, A New Vision for Financing Development, took place on Sunday, April 17. Moderated by Michelle Fleury, BBC's New York business correspondent, it included World Bank Group President Jim Yong Kim, Bill Gates, Justine Greening (UK Secretary of State for International Development), Raghuram Rajan (Governor of the Reserve Bank of India), and Seth Terkper (Minister for Finance and Economic Planning of Ghana).
The panel was in consensus about the current challenging economic and social environment facing the world as a whole. That environment includes low rates of economic growth across the world, drastic reductions in the price of commodities that are impacting negatively low-and middle-income countries, rising inequality, frequent natural disasters and pandemics, increased number of displaced populations and refugees due to conflict and violence spilling across national borders and continents, and the ambitious United Nations 2030 Agenda for Sustainable Development, which includes a set of 17 Sustainable Development Goals (SDGs). A question debated in the panel was, Where will the resources be found to address these challenges? This question is critical under the current scenario if countries are to continue to build on the progress achieved over the last decade and maintain previous gains.
What would be a game-changer for achieving some of the world’s most difficult goals — such as ending poverty and hunger and making sure every child gets a quality education?
Billionaire philanthropist Bill Gates came to the World Bank Group Spring Meetings to answer that question in a thought-provoking conversation about how to finance development for greater impact.
Jordan’s Queen Rania and other high-ranking officials said Friday that the world needs a new approach to deal with historically high numbers of forcibly displaced people.
“This is a global crisis, and we’re deluding ourselves if we think it can be contained,” the queen said at the World Bank Group-IMF Spring Meetings, where forced displacement is a top issue on the agenda amid a refugee crisis that has spread from the Middle East into Europe over the last year.
Queen Rania said Jordan has received 1.3 million Syrian refugees over the past five years. The influx has been a “demographic shock that is exhausting our social and physical infrastructure to its absolute limits,” she said. International contributions have made up less than a third of Jordan’s expenses.
If everyone had Internet access, then everyone would have a fair shot at financial stability and an education, right?
If only it were so easy.
On Thursday, U.S. Secretary of State John Kerry and World Bank Group President Jim Yong Kim led a meeting of some of the top minds in global development to talk about the U.S. State Department’s Global Connect Initiative. The goal: to get 1.5 billion people online by 2020.
The so-called “Panama Papers” scandal reminds us that concealing wealth and avoiding tax payments is neither uncommon nor — in many cases — illegal. But the embarrassing leak exposes something else: The public trust is breached when companies, the rich and the powerful can hide their money without breaking the law. If this breach is left unaddressed, those who aren’t rich enough to hide money will be less willing to pay and contribute to the social contract in which taxes are exchanged for quality services.
As finance minister in my home country of Indonesia, I saw firsthand how a weak tax system eroded public trust and enabled crony capitalism. Shadow markets arose for highly subsidized fuel, family connections secured jobs, and bribes helped public servants beef up their salaries. Tax avoidance among the elites was common and the country couldn’t mobilize the resources we needed to build infrastructure, create jobs, and fight poverty.
The world must move quickly to fulfill the promise of the climate change agreement reached in Paris four months ago and accelerate low-carbon growth, World Bank Group President Jim Yong Kim said on the opening day of the Spring Meetings.
More than 190 countries came together last December to pledge to do their part to halt global warming. The result was an unprecedented agreement to keep warming below 2 degrees Celsius over pre-industrial times, with the goal of limiting warming to 1.5° C.
Conversation may be an art, but the best conversations spur action, too – and the upcoming Global Infrastructure Forum 2016 will focus on strengthening and formalizing collaboration among multilateral development banks (MDBs) to improve infrastructure delivery around the world. This unprecedented daylong gathering in Washington, DC brings together the leaders of the MDBs, as well as development partners and representatives of the G20, G-24, and G-77 and the United Nations, with the aim of enhancing multilateral collaborative mechanisms to improve infrastructure delivery globally.