MARRAKECH, Morocco, Oct. 16, 2023 /PRNewswire/ -- Strengthening the roles of existing multilateral development banks (MDBs) and organisations like the International Monetary Fund (IMF), the World Bank and the United Nations will help the world better tackle global challenges, panelists urge on Tuesday in Morocco of North Africa during a panel discussion at the "2023 Marrakech Annual Meeting" co-organised by the International Finance Forum (IFF).
Distinguished panelists at the meeting who lead or were former leaders at MDBs including the IMF and the World Bank called for strengthening international cooperation in order to solve global challenges including climate crisis, global inequality and poverty.
Managing Director of the IMF Kristalina Georgieva, who opened the panel discussion, said the world need to come together to solve global challenges, "otherwise we are in trouble".
She emphasized the need to bring the Global North and Global South together in a fast aging world where Africa will be the only continent that will have demographic dividend in the near future.
Masood Ahmed, Advisory Committee member of IFF, President of the Center for Gobal Development (CGD), , called for practical approaches to solve global common challenges while recognizing geopolitical tension.
"We need to start cooperation where we must, including climate crisis and the pandemic." said Ahmed.
Despite the increasing risk of fragmentation, multilateralism still works and is a better way to solve global challenges, said Bo Li, Deputy Managing Director of the IMF.
Li thinks strengthening the existing MDBs is more practical than a complete new design."We risk losing trust if we don't adapt and strengthen," said Li.
Axel Weber, board member of IFF and President of the Center for Financial Studies at Goethe University, thinks international institutions should adapt and change organically to meet global challenges.
Weber suggested that MDBs like the IMF should set up "climate drawing rights" to earmark funds for vulnerable countries to tackle climate crisis. Similarly, he argued that the World Bank should establish "climate capital" to help climate vulnerable countries.
Funding is key in solving global issues. Panelists at the session think strengthening the roles of MDBs will help find the political will to solve funding issues.
"We need global political leaders who are willing to invest and solve climate issues," said Dany Alexander, Vice President for Policy and Strategy at Asian Infrastructure Investment Bank (AIIB).
Ahmed of CGD thinks that strengthening the MDBs like the IMF is doable. "We haven't reached the tipping point where politicians feel they have to act. Until we come to that point, funding will come in piecemeal."
Weber argued that $120 trillion of global investment will be needed to meet climate goals by 2050, which would require raising funds from mature countries.
Weber thinks crowding in the private sector should not come at a bigger cost for the public sector.
Vera Songwe, board member of IFF, Chair and Founder of the Liquidity and Sustainability Facility, thinks rules on debt framework should be changed for better funding.
She also called for bringing the private sector for funding, which will "change the game".
The panel discussion was coorganized by the IFF, the Bretton Woods Committee, and Center for Global Development and moderated by Martin Wolf, chief economics commentator at the Financial Times.
