2023-07-18 16:23:26
World Bank President Ajay Banga warned on Tuesday that the growing rift between rich and poor countries threatens to deepen poverty in the developing world, during a meeting of finance ministers and central bank governors of the Group of 20 nations hosted by India.
Many countries are still seeking to recover from the consequences of two successive crises: the pandemic, and the Russian invasion of Ukraine, which caused a sharp rise in the prices of fuel and basic materials in the world.
In addition, climate change is having dire consequences for poor countries least able to adapt to it.
Banga expressed his fear that the lack of progress in this area threatens a sharp division in the global economy at the expense of the poorest countries.
“The thing that worries me is a lack of trust that is quietly driving North and South countries apart at a time when we need to unite,” he said in a speech to the G20 meeting.
“The frustration felt by the countries of the South is understandable. In many respects, these countries are paying the price for the prosperity of other countries,” he said during the two-day meeting, which began on Monday.
He added that those countries “are deeply concerned that the means, which have been promised, will be redirected to the reconstruction of Ukraine… They feel that their aspirations are limited because energy rules are not universally applied and they are worried that another generation will fall into poverty.”
Banga stressed that the bank is working to enhance its capabilities, including collecting diversified capital from shareholders to promote growth and job creation, stressing the need for economic expansion not to come at the expense of the environment.
UN Secretary-General Antonio Guterres warned that the Russian decision would leave “hundreds of millions of people at risk of starvation” and that they would “pay the price”.
“We live in a complicated time,” German central bank governor Joachim Nagel told AFP on Tuesday.
He added, “I must point out that Russia withdrew yesterday from the Black Sea-Ukraine initiative, and we are here looking at ways to help the most vulnerable countries… This is really strange, and many countries hold Russia responsible.”
The United States considered that efforts to reform multilateral donor organizations such as the World Bank and other regional institutions may allow the release of $200 billion over the next decade.
Restructuring the debts of the poorest countries was a major focus of the Group of Twenty’s concerns, which includes the world’s largest economies, but officials confirmed that no progress was achieved in this field.
TRT Arabic – Agencies
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