"Economic recovery in high-income countries shows signs strengthening and growth continues in many emerging market economies," noted the Development Committee met at the International Monetary Fund (IMF) here Saturday evening.
The statement, according to the communique of the meeting with Marek Belka, Development Committee Chair, World Bank President Jim Yong Kim and Christine Lagarde, IMF Managing Director, stressed that "risks remain" and affirmed that "fostering strong, inclusive and sustainable growth in today's interconnected global economy will require policy adjustments and appropriate coordination and communication." The committee encouraged the World Bank Group (WBG) and the IMF to "work jointly and with all member countries in pursuing sound and responsive economic policies; addressing underlying macroeconomic vulnerabilities; rebuilding macroeconomic buffers; and strengthening prudential management of the financial system." The group pushed for the WBG to "build on its country engagement model as a platform for selectivity based on client demand and the new corporate goals, to deliver better, faster and evidence based solutions that result in transformative outcomes for the benefit of low and middle income countries alike." They expect the new structure of the WBG to "lead to better global knowledge sharing to benefit all client countries, and to strengthening its role in support of south-south and regional cooperation." The committee welcomed the WBG's "scorecard and look forward to regular updates on the implementation of the WBG strategy." The communique affirmed "Social inclusion and policies that broaden income opportunities and the full participation of all groups, including women and the marginalized and vulnerable, are essential." "An open business climate that fosters competition, more inclusive human capital development and well-targeted social protection programs are good both for growth and for shared prosperity. Private investment flows complement development finance and are a vital factor in achieving our goals." On the ambition of the WBG Strategy, the team indicated it "demands better utilization of existing resources as well as strengthening the WBG's financial capacity." In addition to the strategy, the committee urged "the WBG and the IMF to continue to strengthen their engagement with Sub-Saharan Africa and ensure that their financial, analytical, and capacity-building support is geared toward fostering country-driven structural transformation, reducing extreme poverty, boosting job creation, and making economic growth more inclusive and resilient." They "remain deeply concerned about the continuously deteriorating humanitarian situation in the Central African Republic, South Sudan and Syria" and "commend the generosity of governments and families in neighboring countries." To this point it urged "the WBG and the IMF to remain closely engaged in these as well as other FCS and countries in transition, in coordination with other development partners." The next Development Committee meeting will be held here in October.