Making right investment vital - WB
MAKING the right investments now is vital to support the recovery when it is urgently needed and foster resilience, says David Malpass, president of World Bank Group.
Mr Malpass said the response to the pandemic crisis today would shape the common future for years to come.
"We should seize the opportunity to lay the foundations for a durable, equitable, and sustainable global economy," he said in a January 2021 world economic report.
Mr Malpass observed that investment collapsed in 2020 in many emerging market and developing economies, following a decade of persistent weakness.
He said investment growth was expected to resume in 2021, but, despite an uplift from advances in digital technology, not add enough to reverse the large 2020 decline.
"The experience of past crises raises a further concern—without urgent course correction, investment could remain feeble for years to come," he said.
Mr Malpass said in both the external and internal debt resolution processes, transparency was critical to bolster accountability, make future investment and debt more productive, and support the economic recoveries that were crucial for poverty reduction.
Left unaddressed, Mr Malpass warned, the problem of unsustainable debt, and restructurings that did too little, would delay vital recoveries, especially in the poorest countries.
He further said mounting climate and environmental challenges added to the urgency of policy action, including on debt reduction and an improved investment framework.
Mr Malpass said as countries formulate policies for recovery, they had a chance to embark on a greener, smarter, and more equitable development path.