The world is not on a path to eliminate extreme poverty by 2030 and there are increased risks to growth, development, jobs, and living standards, a statement issued at the end of the  World Bank and International Monetary Fund (IMF) Annual Meetings in Marrakech, highlighted. 

 

It urged growth-enhancing structural reforms and expanding financing sources by boosting domestic resource mobilisation.

 

The statement by World Bank President Ajay Banga; IMF Managing Director Kristalina Georgieva; Kingdom of Morocco Minister of Economy and Finance Nadia Fettah; and Bank Al‑Maghrib Governor Abdellatif Jouahri, said: "We need to stand together, united in the goal of protecting our future prosperity and ending extreme poverty." 

 

They said prospects for global growth in the medium-term are at their lowest level in decades. The scarring effects of successive crises are increasingly apparent, just as many countries are struggling to overcome high inflation, high debt, and significant financing shortfalls to provide basic services, support infrastructure and climate action, and address rising poverty, inequality, and fragility.

 

“The world has become more shock-prone, with increased risks to growth, development, jobs, and living standards that widen inequalities within and across countries. Emerging market and developing economies have been especially hard hit. Income divergence with advanced economies has deepened further, and the world is not on a path to eliminate extreme poverty by 2030.

 

“Our understanding of the major risks and disruptive forces facing the global economy has evolved: the existential threat posed by climate change, growing disparities in income and opportunity, and geopolitical tensions are intensifying. Rapid digitalization and technological transformations create new challenges, but also opportunities, and no country should be left behind," it said.

 

“Marrakech 2023 is a call for enhanced global collaborative action on common challenges, so we can build resilience and expand opportunities for a better future."

 

The statement highlighted Four Marrakech Principles for Global Cooperation providing a broad framework to help harness the power of multilateralism to the benefit of all.

 

Reinvigorating Inclusive and Sustainable Growth

Promoting growth-enhancing structural reforms aimed at strengthening governance, the rule of law, trade, and the business environment to attract new investment and generate jobs.

 

Expanding financing sources by boosting domestic resource mobilization, upscaling the provision and effective use of concessional resources, leveraging donor resources, fostering foreign direct investment, and catalyzing private sector finance, while improving public expenditure efficiency.

 

Addressing fragility by effectively utilizing mechanisms for supporting fragile and conflict-affected states and jointly addressing global sources of food and energy insecurity.

 

Building Resilience

* Strengthening institutional capacity by building stronger institutions and policy frameworks with support from international organizations.

 

* Maintaining external stability by pursuing sound macroeconomic policies and avoiding disruptive spillovers to other countries.

Strengthening public debt management and resolution frameworks by enhancing external and domestic debt management and improving the efficiency and timeliness of debt restructuring processes.

 

* Enhancing global crisis preparedness and mitigation by increasing the resilience of supply chains, strengthening pandemic preparedness, strengthening financial sectors, undertaking timely macroeconomic adjustments, building adaptive social protection, and reinforcing the Global Financial Safety Net.

 

* Decoupling growth from climate risk by developing capacities to manage and implement cost-effective strategies for disaster risk reduction and planning, enabling construction and maintenance of climate and disaster shock resilient infrastructure, strengthening regional efforts against ecological challenges that might lead to forced migration, including by preserving biodiversity, and promoting sustainable land and water management practices.

 

Supporting Transformational Reforms

* Accelerating the green transition through determined efforts by all countries to advance decarbonization of their economies based on the principles the Paris Agreement, while ensuring energy security throughout the transition.

 

* Managing technological transformations to avoid digital fragmentation, narrow the digital divide, facilitate creation of modernized, efficient domestic and cross-border payment systems and foster financial inclusion. Internationally harmonized rules and regulations must also be developed in tandem on crypto assets, data protection, cyber security, and artificial intelligence.

 

* Enhancing health systems and preparedness through collaborative work towards enhancing global health security by improving universal health coverage, strengthening health systems, and establishing global mechanisms to ensure equitable access to vaccines and medications.

 

* Promoting equitable and quality education to advance global efforts toward inclusive and equitable quality education, broadening access to early childhood, primary, and secondary education, and boosting quality to ensure learning in the classroom.

Building gender equality to expand and enable economic opportunities, empower, and engage women as leaders.”

 

Strengthening and Modernising Global Cooperation

* Strengthening the international monetary system and its rules, conventions, and institutions to respond to countries’ needs and to facilitate cross-border trade, payments, and investment flows.

 

* Strengthening the multilateral trading system to support global economic cooperation and growth by ensuring that it is rules-based, non-discriminatory, fair, open, inclusive, sustainable, and transparent with effective dispute resolution mechanisms.

Enhancing collaboration, as the IMF and the World Bank are committed to working closely together and with partners to help member countries address challenges and leverage opportunities. -TradeArabia News Service