A view of the World Bank headquarters building in Washington, DC on October 20, 2024 ahead of the 2024 IMF/World Bank Annual Meetings. (Photo by Tierney CROSS / AFP)
The Department of Finance called for reforms aimed at enabling the International Monetary Fund (IMF) and the World Bank Group (WBG) to improve support for vulnerable nations while helping eradicate poverty.
“We continue to call for a more agile and resolute IMF and World Bank. We need you to not only keep pace with the changing times but also lead with foresight and innovation. We need heightened development cooperation, scale-up support, and more responsive solutions to navigate the headwinds and foster peace, stability and prosperity for all,” according to Finance Secretary Ralph Recto.
He said this in a speech during a meeting of the intergovernmental Group of twenty-four (G-24) board of governors, where he is current chair, held last Oct. 22 at the IMF headquarters.
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Among the reforms he cited was the establishment of a new liquidity provision mechanism to better support countries with strong economic fundamentals during liquidity crises.
Recto said there was also a need for the World Bank to provide more concessional loans or loans with softer terms, in line with the challenges of achieving inclusive and sustainable development by 2030 and with the aim of eliminating poverty globally.
“Without improvements and bold actions, decades of individual and global efforts to eradicate poverty and inequality, combat climate change, and invest in growth-enhancing projects will be put to a halt, if not reversed,” Recto said.
He also cited the need for governance reforms to ensure that developing countries have a stronger voice and greater representation in decision-making.