Development Committee voices concerns about global trade, investment

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The Development Committee, a ministerial-level forum of the World Bank and the International Monetary Fund (IMF), said that global trade growth has weakened and investment prospects have softened, and urged countries to address these concerns.

In a communique issued on Saturday at the close of the institutions' Spring Meetings in Washington, the Development Committee said it reiterates the important role of international trade and investment as engines of growth, productivity, innovation, job creation and sustainable development.

"Debt vulnerabilities persist, and policy uncertainty is weighing on confidence," the communique said. "We stress the importance of adopting growth-enhancing policies while containing risks and protecting the most vulnerable."

The committee voiced its support for the World Bank and IMF's "multipronged approach" with borrowers and creditors to improve the recording, monitoring, and reporting of public and private debt, as well as efforts to strengthen creditor coordination in debt restructuring situations, drawing on existing fora.

"We call on both institutions to work jointly with policy makers to identify the right balance, given country circumstances, between supporting demand and rebuilding fiscal space; to help countries improve debt management capacity, sustainability, and transparency; and to strengthen domestic resource mobilization," the communique said.

It also emphasized the "key role" the private sector plays in providing sustainable solutions to development challenges, creating markets, mobilizing investment and generating jobs.

It called on relative parties to work together in mobilizing private sector solutions and resources, leveraging sectoral reforms, and mitigating investment risks.

The committee, which represents 189 member countries, also underscored its support for the World Bank's twin goals of ending extreme poverty and boosting shared prosperity.

In a statement after the Development Committee meeting, David Malpass, new president of the World Bank, stressed that the multilateral development institution's mission is "more urgent that ever."

"It is critically important that we work tirelessly to foster broad-based growth, raise median incomes, create jobs, and fully incorporate women and young people in economies, to support a stronger, more stable global economy for everyone," Malpass said.

Source(s): Xinhua News Agency