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IMF-World Bank annual meetings 2023

  • Published
    21st Oct, 2023
Context:

Recently, the annual meetings of the world’s most influential multilateral financial institutions, the World Bank (WB) and the International Monetary Fund (IMF), concluded in Marrakech, Morocco.

Key takeaways of the meet:

  • World Bank’s say:
    • As per World Bank estimates, approximately 60% of the global poor are expected to reside in fragile and conflict-affected nations.
    • It highlights challenges faced by countries lacking fiscal buffers to absorb economic shocks, calling for responsive financial models.
  • World Bank outlines strategies:
    • Implementing contingencies for countries with budget constraints due to debt servicing and disaster relief, to prevent a financial squeeze during crises.
    • Harmonizing global macroeconomic standards and procedures for increased partnerships.
    • Mobilizing new financial and debt relief instruments, aiding clients in portfolio management and resilience-building.
    • Issues raised about the exclusion of civil society from the proceedings of the Just Energy Transition Implementation Plan (JET-IP) in South Africa, emphasizing the need for transparency and accountability in climate transitions.
  • International Monetary Fund (IMFs) views:
    • IMF's Managing Director outlines climate efforts, including aiding high emitting nations in policy formulation for reducing carbon intensity.
    • Assistance provided to vulnerable countries in maintaining financial stability during climate-induced shocks.
    • Creation of the Resilience Sustainability Trust for climate-focused assistance, alongside the allocation of Special Drawing Rights (SDRs) to member countries.
    • Challenges highlighted:
      • The feasibility of altering IMF quota shares, including introducing a 'one country, one vote' system, is considered unlikely in the current regime.
      • Unfulfilled promises to review the IMF's quota regime, as discussed in recent meetings, prompt concerns about technicalities being obscured for media and civil society organizations (CSOs).

Way forward:

  • Global Financial Architecture: CSO presentations highlight longstanding concerns about structural issues in the global financial system.
    • Institutions' responses have been perceived as slow and fragmented, falling short of addressing systemic challenges.
  • Disappointment in Annual Meeting Outcomes: Despite being an opportunity to showcase commitment to justice and climate change, CSOs express disappointment in the meeting's results.
    • The need to consider who dictates the global financial architecture.
  • Significance of Climate Finance System Reform: The delay in developed countries providing the promised 100 billion dollars for emissions reduction underscores the need for a paradigm shift in climate finance governance.
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