COVID-19 Will Leave Lasting Scars On Developing Countries — World Bank

The World Bank says the COVID-19 pandemic will have major effects on developing countries.

The President, David Malpass gave the hint at the Spring Meetings 2021 G20 Finance Ministers and Central Bank Governors Meeting.

Malpass noted that the crisis came on top of persistent development challenges, including stagnant median incomes, fragility and violence and damages caused by climate change.

Identifying closed schools, lost jobs, depletion of savings and assets and growing debt overhangs as the aftermath of the pandemic, Malpass said “COVID-19 will leave lasting scars on developing countries.”

He announced that in 2020, the World Bank achieved a record 65% growth in commitments and doubled trade and working capital finance to fill the banking vacuum that hit private sectors.

“In 2020, bank-wide commitments topped $100 billion for the first time and we expect new vaccination operations in 50 countries by mid-year.”

Malpass confirmed that the main elements of the Climate Change Action Plan had been presented.

The agenda includes new targets for financing and steps to have as much impact as possible in improving the trajectory of greenhouse gas emissions and saving lives and livelihoods.

On debt, the World Bank commended the decision by the G20 to extend the Debt Service Suspension Initiative (DSSI) through 2021.

The institution assured it is working closely with the International Monetary Fund (IMF) to support the implementation of the G20 Common Framework.