Transcripts For CSPAN2 World Bank Discussion On COVID-19 Eco

Transcripts For CSPAN2 World Bank Discussion On COVID-19 Economic Recovery 20240712

And it is fundamentally changing societies, economies, and countries. Today we are here to understand the true impact, which is particularly devastating to developing countries and the most vulnerable communities women, youth, the elderly, and migrants. Most importantly, we are here to find innovative solutions. This the focus of the World Bank Annual meeting, which takes place starting the week of october 12 and convenience Global Leaders from governments, as mrs. , and civil society. Businesses, and civil societies. We will hear from the World Bank President on what it will take to tackle the crisis, and how we can turn this into an opportunity to build a path towards a resilient and inclusive recovery. He will be joined in the president ith of the Stanford School of finance and management. President ar from the of the bank joining us from his office. He has been president of the german centralbank since may 2011. He is a member of the governing council of the ecb, represents germany at the imf and under international parties, and has been chairman of the board of directors of the fund for International Settlement since november 2015. Welcome. The virtual floor is yours. Asiya,k you very much, for your kind words of welcome. It is a great pleasure and honor for me to be joining you today. As everyone here knows, inequalities and realizing and inclusive and Sustainable World ,equires education, health care attention to the environment from an robust commerce, faith and neighbors. Recently,was may not but more than year ago by the president of World Bank Group, david malpass. Thesethe Current Crisis, words are pressing in default of a few months ago, millions of people lost their jobs and the National Supply chain was broken , children were unable to go to werel, and Health Systems at a breaking point. Worst of all, many people have died. Economistbanks chief summarize the followed by saying even by the standards of systemic crisis, this is a onceinacentury truly global crisis. Germany was not spared by the crisis, either. In the Second Quarter alone, the German Economy shrank by 1 10. The death and pace of the contraction were unprecedented. One reason for this was the stringent measures taken by the government to keep the pandemic in check. Consumers and businesses also behave cautiously on their own account and held back spending. When the protective measures were relaxed, people regain confidence, the economy revived. The German Economy is likely to grow strongly in the third ord r quarter, albeit from a depressed level. Although it initially appeared vshaped, it is becoming flatter. A slowdown such as this is expected. The recovery of the German Economy is likely to be protracted and to remain incomplete for some time, since Economic Life is still constrained, whether this is due to government requirements for that people are choosing to social distance. First three meters of the climb work comparatively easy, the upward path to the previous levels is long and fraught with uncertainty. A major source of uncertainty is how the pandemic will continue to unfold. Keeping the disease and great and learning to achieve containment and decreasing economic costs and eventually overcoming the pandemic are essential to sustaining economic recovery. But that is easier said than done. Es,ing infection rat and the german industry, it is also important that others regain that economic strength as well. The recovery in germany also hinges on something else. A second round of dust needs to be prevented so it cannot entrench economic problems. Monetary policy is playing its part in this, providing banks with ample liquidity, coupled with low interest rates, crucial to ensure that the economic crisis is not further aggravated by the financial system. Another risk is that businesses with previously solid fundamentals and a promising future do not make it through the crisis, setting off broadways of insolvent brought wave seven solvency spirit many people losing their jobs will have a hard time finding new employment, their skills and knowledge will begin to erode, lowering their and harming the economy as a whole. This is where fiscal policy needs to step in, by providing rapid and comprehensive Financial Support for 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. He Bigger Picture the Global Nature of the crisis makes the situation particularly challenging. Above all, for emerging markets and developing economies. As the world bank highlighted in , there iseport headwinds from two sides. Home, the pandemic at curving the domestic economy. Second, they have to cope with the economic spillovers from the deep recession in advanced economies. Commodity prices have plunged. Demand for goods has shrunk. Tourism is almost ground to a halt. Remittances have sunk markedly. Overall, the ranks of extremely from 70ple could swell to 100 million this year, according to world bank estimates. The world bank fears that the crisis could leave deeper scar than typical recessions. In particular, and options to schooling and health care disruptions to schooling and health care is likely to have an. Mpact on individuals according to unesco calculations, over 90 of pupils worldwide were impacted when School Closures pete. As many as half of them are still affected today. Many schools remain closed, especially in the middle east and africa. Whats more, Remote Learning capabilities are often far worse in less developed countries that they are in industrial nations come with only parts of the parkervision having parts of the correlation having access to online courses. Primaryschooven ls pupils have Internet Access at home. The world bank calculation shows the consequences of disruptions to the education process due to the pandemic. It could fall on average by more than half a year, and this could lower expected lifetime earnings by 5 . As access to School Learning does not serve people equally, the Current Crisis is likely to exacerbate income inequality. The magazine the economist recently summed the problem up particularly well. This coronavirus affects everyone, but not equally. The rich short off the shock shrug off the shock to the poor cannot. The world bank has played a role in supporting low income countries. Since the beginning of the crisis, it has been able to provide funds quickly and efficiently. Emergency help support has reached 111 countries. The group will be mobilizing resources at an unprecedented scale. With that, it is high time to introduce to you the head of the central institution, the driving force behind this crisis response. I would like to welcome david malpass, president of the World Bank Group for the past one and a half years. Degreeof a bachelors major in physics, david has done work in very different settings over his lifetime. I mentioned during your career you intuitively apply to the level of principle to achieve maximum progress with the given amount of force. You did this at various private Sector Enterprises including a long stint as chief economist at bear stearns. And when you started your own company, you also served the public, spending many years at the u. S. Treasury as far back as the reagan administration. Your tasks at that time included a wealth of Foreign Policy issues, which brought you into contact with the world bank. To the, he returned treasury and became undersecretary of the treasury for International Affairs and represented the United States and International Settings across numerous g7 and g20 meetings. Keene, editor at large at bloomberg news, once praised your talents when he stressed most of all your handson approach. To paraphrase tom keenes words from others stopped, but you didnt. Quality such as this are important, particularly in times of crisis. It is with great anticipation that we await hearing what you on the outlookay for the Global Economy and the impact of the pandemic in developing countries and the world banks agenda. Fruitfulu all are debate. David, the floor is yours. David good to see you. Thank you very much, jens, for the very nice introduction. Muhammad to asiya and when this bank for bundesbank for hosting a virtually. Im here to set the stage ahead of the imf and World Bank Grou s annual meetings which will ands on covid and debt engage partners in urgent discussions on Human Capital, Climate Change, and digital of element. Before i begin, i would be remiss not to mention that this is the first time that the positioning speech for the world Group Annual Meetings is being held in continental europe. Germany is the major anchor for the World Bank Group in the rest of europe. It is the fourth largest shareholder and the fourth largest contributor, and chancellor merkel has always been a supporter of the World Bank Group priorities including tackling debt and covid as well as action on Global Public goods. I understand that these priorities are also the focus of germanys eu presidency, which runs through the end 2020. Ens said, the covid pandemic is a crisis like no other. Its toll is massive qom and people in poor countries are likely to suffer the longest. The pandemic has disrupted likelihoods in every corner of the globe. It has knocked more economies into simultaneous recession than at any time since 1870. And it could lead to the first wave of a lost decade burdened weak growth and a collapse in many health and Education Systems and excessive debt. The pandemic has already changed our world decisively and forced upon the world of painful transformation. It has changed everything the way we work, the extent to which we travel, and the manner in which we communicate, teach, and learn. It has rapidly elevated some industries, especially the technology sector, while pushing. Thers towards obsolescence our approach has been comprehensive, focused on saving lives, protecting the poor and so people, insurance is poor and for people, ensuring Sustainable Business growth. I will focus on the need to redouble efforts to alleviate poverty and inequality. Second, the associated loss of Human Capital and what must be done to restore it. Third, the urgent need to help the poorest countries make government that more transparent and permanently reduce their debt burdens. Tose are two necessary steps effective investments. And finally, how can we cooperate to facilitate changes needed for an inclusive and resilient recovery . First, on poverty and inequality, covid19 has dealt an unprecedented setback to the worldwide effort to end extreme poverty, raised median income, and create shared prosperity. Jens has referred to the world banks new property projections which suggest that by 2021 an 150 million10 to people will of fallen into extreme poverty, living on less per day. 0 this means that the pandemic and global recession may push over 1. 4 of the worlds population into extreme poverty. The Current Crisis is a sharp contrast from the recession of 2008, which focused much of the damage on Financial Assets and hit advanced economies harder than developing countries. This time the economic downturn is broader, much deeper, and as it Informal Sector workers and the poor, especially women and children, higher 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 the citizens to the extent that many developing countries have not. Another is centralbank asset purchases. The scale of such purchases is unprecedented and has successfully propped up Global Financial markets. This benefits the welltodo and those with guaranteed pensions, especially in the rich world, but it is not clear either in textbook syria practice, how europe textbook theory or percentageave zero rates will translate into new jobs from profitable small businesses, or rising median income, key steps in reversing inequality. Poorer economies have fewer macroeconomic tools and stabilizers and suffer from weaker Health Care Systems and social safety nets. For them, there is no faster way to reverse the sudden reduction in their sales to consumers in advanced economies or the almost overnight collapse in tourism nces from family members working abroad. It is clear that sustainable recovery will require both that and if its all people come benefits all people, not just those in positions of power come in an interconnected world where people are more informed than ever before, this pandemic of inequality with rising poverty and declining median income, will increasingly be a threat to the maintenance of social order and political stability and you the defense of democracy even to the defense of democracy. Capital,n human developing countries were making significant process before covid19, and notably, we are starting to close gender gaps. Human capital is what drives the sustainable Economic Growth and poverty reduction. It consists of knowledge, skills, and quality of health that people gain over their lives. It is associated with higher earnings for people, higher income for countries, and stronger cohesion in society. Since the outbreak, however, more than 1. 6 billion children in developing countries have been out of school because of potentialimplying a loss of as much as 10 chilean dollars of lifetime earnings for these students. Genderbased violence is on the rise, and Child Mortality is also likely to increase in coming years. Our early estimates suggest that potential increase of up to 45 in Child Mortality because of healthservice shortfalls and reduction in access to food. These setbacks imply a longterm hit to productivity, income growth, and social cohesion, which is why we are doing everything we can to bolster help and education in developing countries. In the areas of health, the World Bank Group worked with our group in march to establish a fasttrack Covid Response that establish Emergency Support to 111 countries so far. Most projects are in advanced stages of disbursement for the purchase of covidrelated Health Supplies such as masks and emergency room equipment. Our goal was to take broad, fast action early and to provide positive flows to the worlds poorest countries. Were making Good Progress towards our announced 15month target of 160 billion in surge financing, much of it to the poorest countries and private sectors for trade finance and working capital. Over 50 billion of that support takes the form of grants or lowray come alongmaturity loans, providing Key Resources to maintain or expand Health Care Systems and social safety nets. Both are likely to play a key nearterm role in survival and health for millions of families. We are also taking action to help developing countries with covid vaccines and therapeutics. I announced last week that by ournding and expanding fasttrack approach to address the covid emergency can we plan to make available up to 12 billion to countries for the purchase and deployment of , once theaccines vaccines have been approved by multiple stringent regulatory agencies around the world. Our privatesector arm, the International Finance corporation, ifc outofschool children tend to backslide in education skills, and for children in the poorest countries, physical attendance in schools is an important source of food, security, and conductivity, not just reading and math that provide a critical ladder out of poverty. In nigeria, for example, we provided 500 million in new funding for the adolescent Girls Initiative for learning and employment, which aims to improve secondary Education Opportunities among girls. The project is expected to benefit more than 6 Million Girls using tv, radio, and Remote Learning tools. Is debt. Urgent topic a combination of factors has led to a wave of excessive debt in countries with no margin for ever. Global Financial Markets are dominated by lowinterest rates, creating a reach for yield fervor that invites access. Excess. This is reinforced by an imbalance in the global debt system that puts sovereign debt in a unique territory that f

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