- The Managing Director of the IMF warned we need to “think of the unthinkable,” as we live in “a more shock-prone world” impacted by the Covid-19 pandemic.
- Russia’s invasion of Ukraine and the recent earthquakes affecting Turkey and Syria have had a profound impact.
- The global economy will grow 2.9% this year, according to forecasts by the financial organization.
“We all have to change our mindset to be much more agile and much more oriented towards building resilience at all levels, so we can handle the shocks better,” Kristalina Georgieva said during a World Government Summit panel.
The IMF chief signaled the need for resilience in our planet, in societies that must allow equal opportunities, and in people, who must benefit from education, health and good social protection. “We are not where we should be in being good stewards of our planet for our children,” Georgieva added. Georgieva said that more private investments were needed to help developing countries meet their climate change goals, which cannot be sufficiently covered by public aid and local government funding.
Perils Of War
On the topic of Russia’s invasion of Ukraine, Georgieva said the world lost “a very precious peace dividend,” prompting nations to spend more on defense and less on domestic concerns, such as healthcare and infrastructure. “We cannot take peace for granted anymore,” she said.
“Everyone got some sense of sympathy for a problem that today is Ukraine’s problem, but tomorrow can be a problem for many other countries – that you can be invaded by your stronger neighbor,” Georgieva said. The IMF has to play a “stabilizing role” in the war in Ukraine, and that the country needs between $40 billion and $48 billion to function this year.
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