Reducing inequality is necessary to ensure long-term and sustainable growth, the World Bank has said, asserting that while the global economy is gaining momentum, risks remain tilted to the downside. The bank said further improvements in the global outlook will require policies that foster inclusive and sustainable growth, address financial vulnerabilities, said the communique issued by the Development Committee at the finance ministers and central bank governors who met here for the annual Spring Meeting of the International Monetary Fund and the World Bank.
“The global economy is gaining momentum, but risks remain tilted to the downside. Further improvements in the global outlook will require policies that foster inclusive and sustainable growth, address financial vulnerabilities, and create jobs and economic opportunities for all,” it said.
“Reducing inequality is necessary to ensure long-term and sustainable growth,” it said. Noting that technological change, trade, financial flows and economic integration have helped boost incomes and have narrowed the economic gaps between countries, it said, but added that these gains have not always been shared evenly within countries.
The communique urged the World Bank and the IMF to redouble efforts to eradicate poverty and ensure that the benefits of international economic integration are shared widely. The communique said it was encouraged by the World Bank’s efforts to become more efficient through reforms of its operational and administrative policies and its People Strategy.
“We welcome the budget discipline introduced by the Expenditure Review, acknowledge WBG efforts to ensure transparency and accountability in tracking and reporting how it uses its scarce resources, and urge continued commitment on these fronts,” the statement said yesterday.
It called for prioritising private sector solutions when deploying scarce public resources, including for infrastructure; strengthening domestic resource mobilisation; supporting global public goods and paying special attention to stabilising the economy and supporting growth in situations of fragility, conflict and violence as well as to the development needs of small states.
The communique encourage further efforts to mobilise and rapidly disburse support for countries, communities and refugees that are affected by famine or forced displacement, in close coordination with the United Nations and other partners.