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INDONESIAN Finance Minister Sri Mulyani Indrawati pushed for an equitable global economic recovery at the recent World Bank Group-IMF Development Committee meeting.
At the meeting, the Minister of Finance, who was representing the member countries of the South East Asia Voting Group (SEAVG), said that the acceleration of economic recovery will depend on several things, including access to and distribution of vaccines, fiscal capacity, and global supply chains.
“On the other hand, the uneven strength of global monetary and fiscal policies can create financial vulnerabilities, especially in developing countries. In this case, the World Bank can take the lead and build stronger coordination with other international financial institutions to ensure integrated global policy cooperation to overcome these global problems,” Indrawati stated in an official statement received here on Saturday (10/16).
The COVID-19 pandemic has highlighted the importance of investment in crisis prevention, preparedness, and response, she pointed out. All countries face crisis risks not only from the pandemic but also natural disasters and climate-related events, she noted.
“Countries need stronger policies, mechanisms, institutions, and resources to increase resilience. In this regard, the World Bank Group should assist in key areas, including strengthening the fiscal framework to better implement counter-cyclical policies, promoting improvements in human capital, and developing the quality and volume of infrastructure,” she advised.
In addition, the World Bank Group should also assist in increasing access to energy, building strong health and social protection systems, and developing digital infrastructure that is vital to bolstering the resilience of countries.
Indrawati said that firm investment and innovative financing are necessary for better development. The global community must also establish financing mechanisms that will enable countries, both individually and collectively, to respond more effectively to global threats in the future so that the global economy can recover faster.
“The World Bank Group and IMF should cooperate with other international financial institutions to equip countries with the necessary resources and instruments to produce stronger standards for prevention, preparedness, and response to potential crises,” she remarked. [antaranews]
