World Bank President Ajay Banga delivered a speech on Friday (October 13) at the 2023 Annual Meetings Plenary of the World Bank Group and the International Monetary Fund (IMF) held in Marrakesh, Morocco. During his address, Banga acknowledged the challenges faced by the rapidly changing world and called for collaboration between countries.

Expressing his concern over the declining progress in the fight against poverty, the World Bank president also pointed towards the existential climate crisis, food insecurity, and the impact of conflicts worldwide such as the ongoing Israel-Hamas war.

One of the key points in Banga's address was the decline in economic growth in the developing world. He pointed out that economic growth has been falling from 6% to 5% over two decades and is on track for just 4% over the next seven years. Banga highlighted the grim consequences of this, with every lost percentage point pushing millions into poverty.

The speech also emphasised the importance of focusing on women and young people, particularly in the workforce. Banga called for gender equality and youth employment, recognising the demographic challenges faced by the Global South.

Banga also unveiled the World Bank's new vision and mission — to create a world free of poverty on a liveable planet. He stressed the urgency of this mission and highlighted the need for innovative approaches to finance a different world where a "perfect storm" of climate change, post-pandemic consequences and poverty is brewing.

"We face declining progress in our fight against poverty, an existential climate crisis, food insecurity, fragility, a fledgling pandemic recovery, and are feeling the effects of conflicts beyond the front," Banga said. "A perfect storm of intertwined challenges and geopolitical complexity that taken together exacerbate inequality."

Further, Banga discussed the importance of collaboration with the private sector to mobilise resources and drive sustainable progress. He outlined the World Bank's initiatives, such as the Private Sector Investment Lab, aimed at increasing private investment in renewable energy and the energy transition in developing countries.

"Though we don’t have all the answers now, and those we are working toward will take time, we do have desire, energy, and focus," Banga said.

The speech ended with a call to action, urging governments, shareholders, and philanthropies to step up and support the World Bank's efforts. Banga emphasised the need for a new, streamlined approach that focuses on achieving impact at scale.

The plenary was also attended by Ukraine's Finance Minister Sergii Marchenko and IMF Managing Director Kristalina Georgieva.

"We are custodians of an institution with a tremendous responsibility at a time of uncertainty and great consequence," Banga said, referring to the annual meetings of the IMF and World Bank.

(Edited by : Shoma Bhattacharjee)

First Published:Oct 13, 2023 8:00 PM IST