Navigating Multiple Crises, Staying the Course on Long-term Development : The World Bank Group’s Response to the Crises Affecting Developing Countries
The world is facing a perfect storm that has the potential to undo decades of development gains. Two years into a major worldwide pandemic, the global impact of the war in Ukraine is hitting countries that were already stressed. Fiscal space has been eroded in many developing countries by rising borrowing costs, and a decade of rising debt capped by a further surge, severely exacerbated by the pandemic. Rising inflation and weakening economic recovery are contributing to growing macroeconomic imbalances, exacerbating already high risks of debt distress and leaving many households vulnerable. In April 2022, the World Bank Group (WBG) outlined a “Roadmap” to indicate how it would support clients as they respond to the impacts of these ongoing, multiple, overlapping, and compounding crises. This follow-up paper details the WBG’s crisis response and proposes a framework tailored to the current situation. This paper is organized as follows. Section II describes the multiple crises facing countries today. Section III proposes a framework for the WBG response to the global crisis. Section IV and V describe key considerations for the operational approach to the crisis response and detail the financing envelope. Section VI underscores the need for global coordination to maximize the impact of this crisis response. Section VII concludes with key issues.
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| Format: | Working Paper biblioteca |
| Language: | English English |
| Published: |
Washington, DC
2022-07
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| Subjects: | UKRAINE WAR IMPACT, BORROWING COSTS, PANDEMIC, WORLD BANK RESPONSE TO GLOBAL CRISIS, CRISIS RESPONSE STATUS, IMPACT OF COVID-19 PANDEMIC, |
| Online Access: | http://documents.worldbank.org/curated/en/099640108012229672/IDU09002cbf10966704fa00958a0596092f2542c http://hdl.handle.net/10986/37826 |
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| Summary: | The world is facing a perfect storm
that has the potential to undo decades of development gains.
Two years into a major worldwide pandemic, the global impact
of the war in Ukraine is hitting countries that were already
stressed. Fiscal space has been eroded in many developing
countries by rising borrowing costs, and a decade of rising
debt capped by a further surge, severely exacerbated by the
pandemic. Rising inflation and weakening economic recovery
are contributing to growing macroeconomic imbalances,
exacerbating already high risks of debt distress and leaving
many households vulnerable. In April 2022, the World Bank
Group (WBG) outlined a “Roadmap” to indicate how it would
support clients as they respond to the impacts of these
ongoing, multiple, overlapping, and compounding crises. This
follow-up paper details the WBG’s crisis response and
proposes a framework tailored to the current situation. This
paper is organized as follows. Section II describes the
multiple crises facing countries today. Section III proposes
a framework for the WBG response to the global crisis.
Section IV and V describe key considerations for the
operational approach to the crisis response and detail the
financing envelope. Section VI underscores the need for
global coordination to maximize the impact of this crisis
response. Section VII concludes with key issues. |
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