World Bank and IMF increase cooperation on debt and digital transformation

International Monetary Fund (IMF) Managing Director Kristalina Georgieva and World Bank President Ajay Banga announced that their institutions intend to intensify cooperation on climate change, debt, and digital transformation. In a joint statement, Georgieva and Banga emphasized that the world is facing significant economic challenges, the existential threat of climate change, and digital transformation in the context of more frequent shocks, high debt levels, limited policy space in many countries, and increasing geopolitical tensions. The statement conveyed that the IMF and the World Bank intend to intensify cooperation on climate change, debt, and digital transformation, and will continue to provide close coordination in providing financial and policy support to developing countries. It was stated in the statement that well-designed and appropriately aligned policies are critical to helping accelerate growth, mitigate policy compromises, and support green and digital transformations, and that the Bretton Woods institutions have a critical role in helping member countries address challenges and take advantage of opportunities. It was stated that the world is facing major transformational challenges and more frequent shocks at a time of increasing economic and geopolitical tensions, that growth in the world economy is slowing and that the medium-term outlook is at its weakest level in the last 30 years. It was noted in the statement that progress in poverty reduction has also come to a halt, and that conflict and fragility are increasing. It was stated in the statement that the world is facing geoeconomic disintegration, extreme natural disasters exacerbated by climate change, and rising public debt levels, and that rapid digitalization and technological transformations create new challenges as well as opportunities, and that with well-designed reforms, digital and green transformations can deliver tremendous economic, social, and environmental gains and contribute to prosperity. It was conveyed in the statement that the World Bank and the IMF will work with stakeholders and partners to mobilize the significant resources needed to overcome the complex challenges faced, and that it is possible and necessary to come together to overcome global challenges, and that the IMF and the World Bank are committed to helping advance this joint effort.