Giovanna Ferullo M. | Panama City, (EFE).- The world lives in an “almost permanent” crisis, with countries that require help to face the climate crisis and growing poverty, among other problems. In this context, the World Bank has to transform itself to respond more and better to these “urgent” needs, its senior managing director, Axel van Trotsenburg, told EFE.
“For us there is no alternative. If we look at the world’s challenges and the need to invest, to at least try to correct the negative trends of recent years, we have no alternative but to seek additional resources, to be willing to modify our operating model, given the urgency and the need of the people who require our help”, said van Trotsenburg, in the framework of a visit to Panama City.
The World Bank Group is made up of 189 member countries and is one of the most important sources of financing for developing nations, as its website indicates. It focuses on the fight against poverty and the promotion of a sustainable world.
The multilateral organization is now promoting a so-called “evolution process” with a view to reforming its vision and mission, and its operating and financial model, among others, explained the senior director.
This plan is undergoing a consultation process “to inform stakeholders of important steps being taken to address customer challenges and to receive feedback and comments.”
At the World Bank Group “we have to have the biggest ambition possible, because the problems are big. We are encouraging everyone to participate with that ambition and with a sense of urgency,” van Trotsenburg said.
A strong response to crises and their future consequences
The senior director said that before the crisis stemming from the pandemic, the World Bank’s lending program was “about $42 billion,” but that in “the last three years” it has averaged “more than $70 billion.” ”.
“There was a huge increase, and I think there is an expectation of how we can continue to respond to all these challenges,” he said.
The process of evolution, in terms of capital and ways to “maximize internal resources”, has identified “several measures that may allow an increase in our loan program by 50,000 million dollars over 10 years, that is, 5,000 million dollars per year.
“And we are looking at other measures that may allow another increase, which may include guarantees from other countries,” among other ideas, van Trotsenburg said.
The negative trend of the SDGs and bank reform
The crises of the pandemic, the climate crisis, the Russian invasion of Ukraine and other problems are “seriously” delaying the achievement of the UN Sustainable Development Goals (SDGs), said the Bank’s senior director.
Extreme poverty “has risen for the first time in decades” and there is concern about “how the lost progress can be recovered and how the international community, including the World Bank, can contribute” to it.
Thus, van Trotsenburg argues that the multilateral entity has to increase its “impact” on “essential” factors such as inclusion, especially of women; young people and education, since to create employment it is necessary to have a qualified youth; resilience and sustainability, which cuts across all of the above and aspects such as health and access to drinking water.
To promote the above, in the financial aspect “it is not enough” with the resources of multilaterals and governments, so “we must think of the private sector” and involve it more.
“Collaboration cannot be limited to traditional partners but also how we can enter into new alliances, especially with the private sector, to mobilize resources together. This (is one of the aspects raised in the reform) of the operational part” of the Bank, explained van Trotsenburg.
The corruption
Asked about the increasingly frequent corruption scandals in Latin America, the senior director of the World Bank stressed that this institution applies “zero tolerance” to this scourge.
Corruption “is a cancer that must be attacked in all ways, including helping countries in the form of technical assistance, but also systematically promoting good governance, transparency, accountability.”
“What we want to indicate is that we have to live zero tolerance against corruption, but also, in a broader area, we want a debate and create awareness (about the need) to improve all forms of transparency. Because, in our opinion, people are demanding that and they are a bit tired of these scandals,” she added.