(AGENPARL) – ven 22 aprile 2022 DEVELOPMENT COMMITTEE
(Joint Ministerial Committee
of the
Boards of Governors of the Bank and the Fund
on the
Transfer of Real Resources to Developing Countries)
ONE HUNDRE
FIFTH
Statement by
Ignazio Visco
Governor of the Bank of Italy
Constituency
Albania, Greece, Italy, Malta, Portugal,
San Marino
and Timor
Leste
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Ignazio Visco
Governor of the Bank of Italy
Constituency of
Albania, Greece, Italy, Malta,
Portugal, San Marino
and Timor
Leste
Ukraine
given their increased exposure to mounting risks, it is critical to preserve IDA’s
capacity to support
them.
The financing options of the medium
term WBG response, as outlined in the Roadmap paper, must be
carefully assessed. Donors’ fiscal constraints can only worsen as the compounding crises continue to weigh
on the global economy. P
Debt transparency is a precondition to effective debt management and key to achieving and maintaining
debt sustainability. We encourage the WBG to boost its work with both debtors and creditors and to
monitor
results.
We thank the WBG and the IMF for their support to G20 efforts to implement the Common
Framework, as well as their endeavours to provide technical assistance to debtor countries. We look forward
to substantial progress in implementing coun
try cases.
The consequences of the war in Ukraine should not make us lose sight of a sustainable and inclusive
development reform agenda. The global community, the G20, international financial institutions and all
multilateral actors must multiply their e
fforts in climate change mitigation and adaptation; pandemic
prevention, preparedness and response; and digitalization.
In the short term, the war could have a negative impact on energy transition. High oil and gas prices and
risks to their future availab
ility are leading some countries to intensify their demand for coal. In many
economies the security of energy supplies
including from fossil fuels
has become a priority.
It should be reiterated that the direction of environmental policies has not chan
ged and the medium
agenda and increasing its development impact. We appreciate its clear message
that the public and private
sectors can work together to generate a conducive environment for digitalization.
Private capital mobilization is paramount to addressing the financing needs of developing countries.
Therefore, the WBG should continue to stren
gthen its One WBG
Approach, synchronizing the IFC and
MIGA’s work in creating innovative instruments and strategies with the World Bank’s work enabling and
supporting that mobilization.
In the years following the end of the Cold War, a peace dividend had
emerged. This dividend was
still is
significant, offering greater resources for investment, establishing peaceful scientific and
technological advances, and allowing for a larger circulation of people, goods, services, technologies, and
capital. Un
til the pandemic, globalization and technological progress have facilitated the strong reduction
of extreme poverty, contributing to convergence in per capita income across countries. But this came
alongside significant losses in terms of job security and
welfare for non
negligible segments of the
population, which would have required appropriate rebalancing measures.
The war in Ukraine is a profound and dramatic change which may interrupt this process and, possibly, lead
to different equilibria that
are still difficult to envisage today. But the pandemic has taught us that the global
community
including international financial institutions
can promote successful cooperation within a
collaborative and multilateral framework. As tensions and fractur
es threaten this framework, restoring
peace,
preserving multilateral dialogue and relaunching a truly cooperative spirit are essential.