Understand itse true impact whh has been particularly devastatingar to countries and e most vulnerable communities, women, youth, the elderly. But most importantly, we are here to find Innovative Solutions to i creating change. This is precisely the focus of this Years World Bank which wilwill takeplace starting octod Global Leaders of the government, business and civil society. Just at the stage for the evening we will hear today from World Bank Group david and whato it will take to tackle this crisis and how we can turn this into an opportunity for an inclusive recovery. We will be joined in conversation with the president school of finance and joining from his office in sanford doctor redman has been president of the German Central Bank and is a member of the governing council, represents germany and the imf and other National Bodies and has been chairman of the board of directors of the bank since november, 2015. Welcome. The floor is yours. Thank you for your kind words. Ladies and gentlemen it is a great pleasure and honor for me to be joining you today. As everyone here knows, addressing and realizing an inclusive and Sustainable World requires jobs, education, healthcare, attention to the environment, this statement was made more than a year ago by the president of the group. Given the crisis however it is very pressing indeed. A few months ago millions of people lost their jobs and National Supply chains are broken, children were unable to go to school and Health Systems were at a breaking point. Worst of all many people have died. The world bank chief economist summarized and followed by saying even by the standards of thean systemic crisis, this is a once in a century truly global crisis. In the Second Quarter alone the German Economy shrank by one tenth and was unprecedented. One reason for this was the measures taken by the government to keep in check but consumers and businesses also behaved cautiously on their own account and hold back on spending. People regained confidence in the German Economy is likely to have grown in the first quarter. It is in fact becoming flatter but a slowdown such as this has been expected. It is likely to be protracted and remain incomplete and is still constrained whether it is a government requirement or because people are choosing to social distance. Put differently it was comparatively easy to the previous level and fraught with uncertainty. A major source of uncertainty is how it will continue to unfold. Keeping the disease at bay and learning to achieve and squeezing Economic Cost and eventually overcoming the deep economic recovery. For the industry that is linked with our countries its also important others regained their economic strength as well. However it also hinges on something else. It needs to be prevented so that they cannot entrench economic problems. Monetary policies are providing banks with liquiditys coupled with low Interest Rates to ensure it isnt further aggravated by the financial system. Anotherhe risk is that businesss with a promising future wouldnt make it through the crisis setting offff broad waves as people would lose their jobs and have a hard time finding employment at the skills and knowledge would erode which would darken the prospect and Lifetime Income and the economy as a whole. This is where fiscal policy needs to step in by providing comprehensive Financial Support for the businesses and people during this difficult period. Fiscal policy makers have taken the right course of action in germany and elsewhere. However, we also need to look at the bigger picture, the nature of the crisis makes it challenging above all for the developing economies. As highlighted in the report, first they have to contain the pandemic at home and second cope with the economic spillovers. Prices have plunged, tourism to a halt. Overall the ranks could swell by 70 to 100 million. Moreover the Current Crisis might leave more than the typical recession. Its more likely to have a Lasting Impact on the individuals but also as economists say at the aggregate level. Over 90 were impacted but as many as half of them are still affected today. Indeed many schools remain closed especially in the middle east. Whats more, Remote Learning capabilities with only part of the population having access. When we looked at the lowest, only one in seven primary schools had Internet Access at home. Recently it was shown the possible consequences of disruptions in the education process due to the pandemic and the years of schooling could fall an average of more than half a year and this could lower expected lifetime earnings by 5 . The Current Crisis is also likely [inaudible] they recently summed up the problem this affects everyone but not equally. The world bank is a key player in supporting the low income countries. Since the beginning of the crisis it has been able to provide funds and advice quickly and efficiently. For example the emergency hasp reached and will be mobilizing resources at an unprecedented scale and with that it is time to introduce to you the head of the institution and the driving force behind the crisis response. I would like to welcome the president of the World Bank GroupNational Economist and major in physics hes worked in many different settings over his lifetime and i imagine often apply the level of principle to achieve maximum progress with an amount of force. A the enterprises including as the chief economist and leader you also served spending many years at the u. S. Treasury. Your task included a wealth of issues which already brought you into context with the world bank. You returned to the treasury and became undersecretary of the treasury for National Affairs and represented national settings and our paths crossed. The editor at large at Bloomberg News once praised your talents and what he stressed most of all was your handson approach. To paraphrase, others struck that you didnt. Qualities such as this are important particularly in times of crisis so it is with great anticipation that we await hearing what you have to say and the impact in the agenda. I wish you all a fruitful debate. Good to see you. David, the floor is yours. Thank you for that very nice introduction and thanks for hosting me virtually. I look forward to engaging and taking questions from students who will be future leaders. I am here to set the stage ahead of the annual meeting which will focus primarily on covid and Human Capital, Climate Change development. Before i begin i would be remiss not to mention that this is the spfirst time the speech for the annual meeting is being held in continental europe. Germany is a major anchor for the World Bank Group and the fourth largest shareholder andce contributor. Chancellor merkel has always been a strong supporter including tackling debt as well as action on Global Public goods. I understand thesese priorities are also the focus of germanys eu presidency that runs to the end of 2020. As said, the pandemic is a crisis like no other. People in the poorest countries are likely to suffer the most. The pandemic has taken lives and disrupted livelihoods in every corner of the globe and has affected more economies into simultaneous recession than any time since 1870 and it could lead to the first wave of growth and collapse in many health and excess ofsystems and deaths. The pandemic has already changed our world decisively and forced a painful transformation that has changed everything. The way we work, the way we travel and the manner in which we communicate, teach and learn. Its affected some industries especially the Technology Sector while pushing others to the left. Our approach has been comprehensive and focused on saving lives, protecting the poor and vulnerable, ensuring Sustainable Business growth and rebuilding a better way. Today im going to focus on forf urgent aspects. First the need to redouble efforts toub alleviate poverty, second, the associated loss of Human Capital and what must be done to restore it. Third, thene urgent need to help the poorest countries make their Government Debt more transparent and permanently reduce their debt burdens. Those are two necessary steps to the investment and finally how can we cooperate to facilitate the changes needed for an inclusive and resilient recovery. First on poverty and inequality nts built an unprecedented setback to the effort to end the extreme poverty, raise the income to create shared prosperity. Pr its referred to the new projections which suggest 2021 an additional 110 to 150 Million People will have fallen into extreme poverty living on less than a dollar 90 per day. This means the pandemic and global recession may push over 1. 4 of the worlds population into extreme poverty. The crisis is a sharp contrast from the recession of 2008 which focused much of its damage on Financial Assets and hit advanced economies harder than the developing countries. This time the economic downturn is broader, much deeper and it has hit the workers and the poor especially women and children harder than those with higher incomes and assets. One reason for the differential impact is the advanced economies sweeping expansion of Government Spending programs. Rich countries have had the resources to protect to an extent manyre developing countrs have not. Another is Central Bank Asset purchases. The scale of such is unprecedented and has propped up Global Financial markets. This benefits the well to do and those with guaranteed pensions especially in the rich world and its not clear either in textbook theory or practice how 0 Interest Rates and every expanding government access liability asset will translate into new jobs, profitable Small Businesses or rising income, key steps in addressing any quality. Poor economies have fewer macroeconomic tools and stabilizers than the weaker Healthcare Systems in th and sol safety nets. For them, theres no fast way to reverse the sudden reduction in their sales to consumers in the advanced economies or the almost overnight collapse in remittances from family members working abroad. Its clear the sustainable recoveriesin will require growth that benefits all people and not just those in positions of power, but in an interconnected terld where people are more important than ever before. This pandemic of any quality with rising poverty and declining Median Income will be a threat to the maintenance and political stability and even to the defense of the democracy. Second, on Human Capital, developing countries were making significant progress before and notably we are starting to close the gender gap. Human capital is what drives sustainable Economic Growth and poverty reduction. It consists of knowledge, skills and quality of Health People gain over their lives and its associated with higher earnings perpeople, higher income country and stronger cohesion in societies. Since the outbreak, however,mo more than 1. 6 billion children in developing countries have been out of school because of covid19, implying a potential loss of as much as 10 trillion in lifetime earnings for these students. Genderbased violence is on the rise and Child Mortality is also likely to increase in the coming years. Our early estimates suggest a potential increase of up to 45 in Child Mortality because of Health Service shortfalls and reduction and access to food. These setbacks and imply a hit to productivity, Income Growth and social cohesion, which is why we are doing everything we can to bolster the health and education in the developing countries. In theun areas of health, the World Bank Group worked with the board in march to establish a fact track response thats delivered Emergency Support to 111 countries so far. Most projects are now in advanced stages of disbursement for the purchase of covid Health Supplies such as masks and emergency room equipment. Our goal was to take broad ndaction early and to provide a large net positive flows to the worlds poorest countries. We are making Good Progress towards our announced a 15 month target of 160 billion in surge financing. Much of it is to the poorest countries and private sectors where trade finance and working capital. Over 50 billioner of that suppt takes the form of grants or long maturity loans providing the Key Resources to maintain or expand Healthcare Systems and social safety nets. Both are likely to play a role in survival and health for millions of families. We are also taking action to help countries with covid19 vaccines. I announced last week that by extending and expanding our fasttrack approach to address the emergency, we plan to make available up to 12 billion to countries for the purchase and deployment of covid19 vaccines once theyve been approved by multiple stringent regulatory agencies around the world. Our private sector on the International Finance corporation is investing heavily through the Global Health platform. Also working with vexing partnership to map the vaccine manufacturing capacity focusing especially on p potential bottleneck. To mitigate the impact of the pandemic on education, the bank is working toba help countries reopen primary and secondary schools safely and quickly. Out of School Children tend to backslide in their education skills, and for children in the poorestl countries, physical attendance in school is an important source of security and connectivity, not just the reading and math that provided a ladder out of poverty. In nigeria, forfo example, we provided new funding for the adolescent Girls Initiative for learning and employment which improved secondary Education Opportunities among girls. The project is expected to benefit more than 6 million using tv, radio and Remote Learning tools. My third urgent topic is death. A combination of factors has led to a wave of excessive debt in countries where there is no margin for error. Global Financial Markets are dominated by lowInterest Rates creating a server that invites access. This is reinforced by and in balance in the system that puts sovereign debt in a category that favors creditors over the people in the borrowing country. There isnt a sovereign bankruptcy process that allows for partial payment and reduction of claims. As a result, people even in the poorest most destitute are required to pay the Government Debts as long as creditors pursue claims. Even socalled vulture creditors who acquire the distress claims on secondary markets, exploit litigation, p penalty interest clauses and Court Judgments to ratchet up the value of the claims and use the attachment of assets and payments to enforce the data services. Even those creditors must be paid. In the worstcase, its the modern equivalent. Further, the political incentive and opportunity for the government officials to borrow heavily has increased. Their careers benefit from the availability of the long maturity debt because the repayment cycle is often well after the political cycle. This undermines accountability making transparency much more important than in the past. An added factor is the rapid growth of new official lenders especially the wellcapitalized creditors. Theyve expanded their portfolio dramatically and are not fully participating in the processes that were developed to soften previous waves of debt. To take a first step at the World Bank Spring meetings in march, i posed a moratorium on the debt payments by the poorest countries. It was partlyns a response to covid and the need to have physical spacfiscal space and aa recognition that the debt crisis was underwayay for the poorest countries. The challenges i mentioned earlier. Endorsement the debt service and initiative took effect on may 1. It also enabled us to make significant progress on debt transparency which will help borrowing countries and creditors make more informed borrowing and investment decisions. This years edition of the statistics to be released next monday october 12 will provide more detail and disaggregated data on the sovereign debt than ever before and its nearly 70 year history. Many more steps are needed. One avenue is to broaden the initiative so that theres time to work out a more permanent solution. The world bank the g22 extend through the end of 2021 and we are highlighting the need to urge the participation of all of their private and bilateral publicsector creditors into the iss eye. Private creditors and bilateral creditors shouldnt be allowed to free ride on the debt relief of others and at the expense. The debt service distention is an important stopgap, but its not enough. First, too many of the creditors are not participating in leading the debt relief too shallow to meet the physical needs of the inequality pandemic around us. Second, the payments are simply being deferred, not reduced. It doesnt produce light at the end of the tunnel. This is particularly apparent in todays financing environment. The normal time value of money simply isnt working so the creditors offer of a deferral of payments with a compounding interest often means the burden of debt goes up withh time, not down. The historical use in the debt restructuring has to be scrutinized for fairness to the people in the debt countries. The risk is that it will take years or decades to convince the debttors to reduce their burdens enough to help restart the growth. Given the pandemic, we need to move with urgency to provide a meaningful reduction into the stock of debt or countries and debt distress. Under the current system, however, each country, no matter how poor, theyve each creditors are financed with the highest highestpaid lawyers t representing them often in u. S. And uk court that make debt restructuring difficult. Its surely possible that these countries do have the biggest contributors to development and do more to reconcile the Public Policies towards the poorest countries and the law protecting the rights of creditors to demand repayments from these countries. Several steps are needed. First, full participation in the moratorium. Second, full transparency. Third, a careful analysis of the countrys longterm debt to sustainability. This degree of transparency and aanalysis would be strongly beneficial for the commitment of the developed countries such as public pension funds. Fourth, we need new tools to push forward with a reduction of the debt for the poorest countries. The world bank and imf are proposing to the Development Committee a joint action plan for the end of 2020 for Debt Reduction for either country and unsustainable situations. My fourth topic is on fostering inclusive and resilient recovery. Covid19 has demonstrated with deadly effects that financial borders offer little protections. Itss underscored economic systems, human health and global wellbeing. It has concentratedg. Our mind n Building Systems that will better protect all countries the next time especially the poorest and most vulnerablene citizens. Its critical countries work towards the climateat and environmental goals. The high priorityy is to lower the Carbon Emissions from Electricity Generation into the determination of new Oil DependentPower Generation projects and the wind down of existing high carbon generators. Many of the largest emitters in the developing world, but i must say also in the developed world are still not making sufficient progress in this area. Amidst the pandemic the World Bank Group has remained the largest multilateral financier of climate action. Over the last five years, we have provided 83 billion in climate related investments. Our workk has helped 120 Million People in over 50 countries to gain access to weather data in Early Learning systems crucial to saving lives in disasters. Weve added a total of 34 gigawatts of Renewable Energy to help communities, businesses and economies thrive. Im happy to say that in fiscal year 2020 just completed on juns president , the World Bank Group made more climate related investments plan at any time in its history. We intend to step that up over the next five years. We are helping countries put in economic value on biodiversity including forests, landg and Water Resources so they can better manage these assets. We are helping them assess how the climatect risks affect women and others who are already vulnerable. We are also working with governments tove eliminate or redirect the environmentally harmful fuel subsidies and reduce trade barriers for food and medical supplies. Progress in this area, however, has remained slow. Covid19 spending packages could have a decisive effect on promoting more low Carbon Energy sources and facilitating a stronger more resilient recovery. And on the economy and soul, recognizing the severity of the downturn and the likely longevity, the key step in the sustainable recovery would be for f economies and people to allow change and embrace it. Countries need to allow capital, labor, skills and innovation to shift to a different business environment. In conclusion, i raise the urgency of addressing poverty, inequality, Human Capital, Debt Reduction, Climate Change and economic adaptability as the elephant in the insuring recovery. This once in a century crisis has demonstrated why history doesnt exactly repeat itself because humankind does learn from its mistakes. The pandemic so far hasnt triggered the devastating side effects of earlier, neither hyperinflation or deflation nor widespread famine even though the loss of income and the inequality of the impact have been worse than most past crises, the Global Economic response so far has been much bigger than we might have expected at the start of the crisis. The Development Response would need to be extended and intensified both in terms of the Health Emergency and efforts to help countrieshe find effective support systems and recovery plans. Greater cooperation will enable us to share knowledge and develop and apply Effective Solutions far more swiftly. It will enable innovators to develop a vaccine that beats the virus and restores peoples confidence in the future. Working through all channels, my hope and my belief is we can shorten the downturn and build a Strong Foundation for a durable model of prosperity, one that can lift all the countries and all people. Thank you very much. Thank you very much. For those excellent points. We are joined by professor neil stiglitz who will provide a reaction and is joining today. He served as the Vice President of Development Part of the management and professor of strategic management. He worked as an associate professor at the university of denmark and teaches organizational design. Welcome, professor. Thank you for the kind introduction and also for giving me the opportunity to share some thoughts with you today. Thank you very much for your inspiring speech to highlight the challenges and the solutions to the global pandemic. I would like to make three points. First of all, i appreciate how you perceive the pandemic as a truly Global Challenge that in fact the developing countries even more strongly than this developing kind. Picked up when the Global Community tackled the covid19 Health Crisis together and i believe that purely National Response with very limited. The same is also true with Climate Change. Second point, i also agree that the pandemic [inaudible] it poses profound challenges. We believe education is a powerful engine for inclusive growth and we offer many programs in the developing countries. In the past couple of months we had to move our Teaching Online but it had a beautiful side effect. We had a Record Number of participants from developing countries joining us and we made substantial investments into the technologies and experienced firsthand how Digital Technology and Digital Transformation is breaking down barriers and is making education a lot more accessible than just a year ago. It also demonstrates the Digital Transformation opens up many new opportunities not just in education and thereby provides a foundation for future sustainable growth. Last point, i also agree excessive Government Debt puts a burden on the Younger Generation that has been especially hardhit by the pandemic and also private enterprises. I think that it is great news today that it will put a lot more emphasis on the Debt Management as a response to the pandemic. What interests me as a professor of strategy here is the longterm strategy to foster sustainable and inclusive grow growth. Thank you. I lost the very end of that question so i heard the whole first part. Can i respond to that. Thanks for your work. Im sorry for that. I think whats really interesting is in the speech you told us how its going to rise to the challenge by the pandemic but what im interested in is how they will adapt to moving forward given thehe current challenge. We kind of have a delay in the system so if i hesitate, theres a little bit of a delay. Your points were very well taken. One of the things we are trying a do is find the International Coordination and working with people most effective in delivering on the mission of the world bank so we are focused on the developing countries but also recognize that the pandemic is a great crisis for the developed countries as well so one of the things we want to do is learn from the developed countries what is applicable in developing. One of the areas where people all around the world have some of the same challenges is getting back to school. How do you do it well and effectively. Im glad to hear you had more participation by developing country students. That shows the importance of the digital connectivity but also theres nothing in good total coming out of the pandemic but in terms of the advances in technology and the use of the internet and Distance Learning those are quite positive. We can sometimes say what challenges us makes us stronger and one of the wayss is the way we talk together in confronting the challenge. Its interesting and humbling everyone around the world is facing the same thing at the same time which is a very rare occurrence. We can try to find ways we tackle the communication challenges and Technology Challenges and the recovery challenges. Thank you. Back to you, professor. As a followup because i found it interesting what you said at the end. We are learning together and we also have to find solutions together. Do you feel this has become a template of how we can tackle thee Climate Change and align te Global Community given the quite fundamental challenge . There could be a lot of learning experience. As i mentioned in my remarks, a key aspect and from energy in general, that is proving a challenge around the world because Different Countries approach it differently. Theres many approaches that are useful and needed. Its a little bit like the covid challenge we need multiple areas to make headway. The same is true on climate. They dont have electricity generated at all so they need to start from the low level of output andd for others thats different than what they are going to do. But of the very high carbon output in the high carbon sources underway with hydroelectric generation and access to natural gas. The total Energy Production is goingup up on the high carbon side. The dialogue can help and knowledge. [inaudible] thank you so much. Im from [inaudible] the pandemic posed major challenges and as a result greater International Corporations and collective responsibility is needed in this time of crisis. Are there effective policies that have implemented in order to support the pandemic and if not are there any that you think can significantlyca contribute from the pandemic . Thank you. Very interesting question. We worked closely with various parts of the European Union. Its become a large set of policies and funding for some of the Development Programs around the world. We interact on each of the levels so we can recommend together and we do that with the organizations involved in vaccine therapeutics and development of the vaccination campaigns. So it is a good relationship. Sometimes it could be more focused. One of them is on the Eastern European side with the large Energy Challenges where the improvement can be made, and thats one aspect of it. I wanted to also mention the leadership of the European Union in the human rights focus to continue to be strong. In other areas i want to say the development itself is very much a country level and Knowledge Level activity, so the world banke is wellpositioned to interact directly and then to invite comments and i mentioned the covid designed by entities such as the European Union and Vaccine Program as well. Thats one way that the European Union could directly apply funding into some of the poorest countries around the world if it were so inclined. Its a very efficient way to extend assistance and we welcome being confronted by this pandemic. We are thinking about our future challenges and these developing economies especially. It is our responsibilitydi to he better [inaudible] they are suffering the most. What more can we improve . I eluded to the challenges for the developed countries themselves. Even at a time it has global effects so we are working actively onn the Global Public goods to recognize the countrys own borders for example the large emitter including the substantial investments and dependency its one of the main states that has been affected by the environment and climate issues. So we can all Work Together on programs the world bank has. They are specifically aimed at addressing the challenges and the financier of the benefits through the various programs. You have addressed so many key plants. Asia, europe, north america clean water and before we leave today let us share messages of hope and inspiration i think its important to understand we need an enterprise and i think this is something to focus on in dealing with the covid19 crisis and more emphasis. The same question to you, please. From my spoken remarks, to help entrepreneurs and Small Businesses in this time of crisis and change and so just to continue to the point of doctor stiglitz made, one of the important parts of the recovery will be preparing for that different kind of economy. One part of that is a financial challenge of how to allow people and their skills to adjust to the new environment, so thats one of the skills for the developing world that we cant simply reflect the previous assets. We have to find ways many of the previously built assets and skills are to be utilized in a different way in the post covid environment. The digital connectivity can help a lot, but also leadership. And to be a global kind of spirit there can be a resilience into the future. The speakers that are utilizing to tackle the impact of this pandemic more than anything, covid19 has valued each other in huma and human co. Todays conversation gives a new sense of optimism that we will continue to try on and that together we can build a more promising future. You can continue to follow the conversations. That will take place starting october 12th. Thank you for watching and goodbye