By Jorge Dastis
Washington (EFE).- He has barely been in office for four days, and Axel van Trotsenburg, the new senior managing director of the World Bank, does not stop. “We have to do more,” the number two of the largest development organization in the world confessed to EFE in an interview.
Van Trotsenburg has just returned from a trip to China where he discussed, among other things, the process to restructure the debt of poor countries, and next week he will present the reform plan of the new board of the organization during its spring meetings together with the International Monetary Fund (IMF).
The plan is based precisely on that idea, to do more: “The World Bank is one of the few institutions capable of upping the ante. There are so many challenges that you cannot just talk, you have to act”, said the person in charge.
The increase in poverty, the food crisis, climate change or economic uncertainty are just some of these challenges, but to face them the collaboration of the private sector will be necessary, because “trillions, not billions” of dollars are needed.
More financing and less debt
Regarding the plans of the body led by David Malpass, Van Trotsenburg explained that the governors of the World Bank will soon decide to approve a new financing package worth 50,000 million dollars in loans for middle-income countries, which will be in force for the next ten years.
In addition, for low-income countries, the directive wants to get more money for emergency funds against crises such as food, but above all that efforts are made to improve the sustainability of their public debt.
“If you end up in a debt crisis, you risk losing years (of development),” explained the economist, for which he called on creditor countries, and especially China, to act quickly to alleviate the debt of the countries. African countries that are at risk of default, such as Zambia.
Both the World Bank and the IMF recently participated in the creation of a “round table” within the G20 (group of the most developed and most emerging countries) to review the debt restructuring processes under the so-called Common Framework, whose presidency India holds this year.
New Delhi has already expressed its intention to be the voice of developing countries during its G20 presidency, and the debt issue is one of its priorities.
The economist did not want to theorize about the calendar of a possible agreement to renew the Common Framework, but made it clear that the World Bank is doing everything possible.
A global crisis
Beyond the individual conditions of each country, the economist recognizes that a large part of the economic uncertainty is due to global challenges such as climate change, and understands the frustration of many young people who ask institutions for a greater effort for the planet.
“I agree with them. I think we have to act,” Van Trotsenburg said. The person in charge made it clear that climate initiatives cannot be “a fad”, but must be included in all the operations of the agency.
In addition, the World Bank will try to increase the impact of these initiatives, working with the private sector to “triple” the effect of its programs.
“We see this as part of a global effort in which the World Bank can make a very good contribution, but I also think that everyone else should do the same,” he added.
This will be part of the message that the authorities of the organization will take to the spring meetings, which will be held from April 10 to 16 in Washington and will serve to advance many of the issues that will be dealt with later in the annual meetings of the IMF and the World Bank in October, in Marrakech (Morocco).