Monthly Archives: April 2021

PM Imran Khan has called on the D-8 Organization for Economic Cooperation comprising eight of the most populous Muslim-majority countries to expand trade and mobilise their resources to tackle the challenges presented by the Covid-19 pandemic. Addressing a D8 summit virtually the other day, the PM noted that the group accounted for over a billion people and $4 trillion in GDP, but while the prerequisites for growth were there, work still needed to be done. He suggested investing time and money in resource mobilisation, youth engagement, expanding trade between member nations, and developing knowledge-based economies. These proposals are largely interlinked.

The PM also called on members to back his last years proposal for the world to provide debt relief and address illicit financial flows, both of which would bring billions back to the developing world, which could then mobilise the funds for development. That money would also motivate youth engagement in areas such as cultural, educational, scientific and business exchanges. This, in turn, is a stepping stone to developing a knowledge economy, the groundwork for which has already been necessitated everywhere due to the impact Covid-19 has had on how we work.

Several countries which had no significant online work or digital transaction infrastructure have had to quickly develop these. Increased digitisation could also help expand trade by making information on local markets more readily available and cross-border transactions less complicated. PM Imran also called for improving food security and healthcare to improve citizens' lives. These tie into the pandemic's socioeconomic impact, which has caused widening income and health inequalities to widen in countries rich and poor alike.

The impact, of course, has been most visible in poorer countries with weaker welfare systems. But in this comes an opportunity to restructure economies and quickly train and transition workers towards tomorrow's professions and careers. The transition can be done more smoothly if countries like the D8 bloc work together instead of in a vacuum. This would protect labour from exploitation during the transition, while also optimising improvements in communications infrastructure, which helps make the development itself sustainable.

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D-8 summit - The Express Tribune

By Lalit K Jha

Washington, Apr 10 (PTI) Asserting that the effects of the COVID-19 pandemic will be felt for years, the International Monetary Fund and the World Bank have been urged by a joint ministerial committee of the two global financial bodies to ensure timely delivery of safe and effective vaccines across all countries.

"Timely delivery of safe and effective vaccines across all countries is critical to ending the pandemic, especially as new variants emerge. Developing countries need to strengthen their readiness for vaccination campaigns and develop coordinated strategies to reach vulnerable populations," a joint ministerial committee of the World Bank and the IMF said in a communique.

The Development Committee Communique at the conclusion of the Spring Meetings of the IMF and the World Bank said the COVID-19 pandemic has caused an unprecedented public health, economic, and social crisis, threatening the lives and livelihoods of millions.

The economic shock is increasing poverty, worsening inequalities, and reversing development gains. As the global economy begins a gradual recovery, uncertainty surrounds near- and medium-term prospects, it said.

"We call for sustained, differentiated, and targeted financial and technical support for an adequate policy response, strong coordination across bilateral and multilateral organisations, and further support to the private sector. We urge the World Bank Group (WBG) and the International Monetary Fund (IMF), in line with their respective mandates, to work closely together and with other partners to contain the impacts of the pandemic," the communique said.

The communique called for redoubling the efforts to support manufacturing capacity for vaccines and the pandemic-related medical supplies in developing countries.

"The pandemic has triggered far-reaching consequences, and we must strengthen global preparedness for future pandemics, and at the same time make progress in building robust health systems with universal coverage," it said.

As poorer countries face the crisis with increased resource constraints, limited fiscal space, and rising public debt levels, more of them, including small states, are vulnerable to financial stress, the communique note.

The rapid initial response under the Debt Service Suspension Initiative (DSSI) has provided much-needed liquidity for IDA countries, it said.

"The effects of the COVID-19 crisis will be felt for years. Mobility restrictions and lockdowns have triggered job losses, especially for women, youth, and vulnerable groups, and can undermine social inclusion," the communique said.

School closures have caused unprecedented disruption to education, especially for girls, damaging human capital, with long-term economic implications. Inflation and depleted incomes have raised household indebtedness and food insecurity, it said, urging the IMF and the World Bank to scale-up its work to address rising levels of food insecurity and to support countries in achieving Sustainable Development Goal 2 and nutrition for all.

Commending the WBG''s scale-up of climate finance over the past two years, its continuing role as the largest multilateral source of climate investments in developing countries, its emphasis on biodiversity, and its technical and financial support for adaptation, mitigation, and resilience, the communique also welcomed the WBG and IMF''s work to assess the impact of climate change on macroeconomic and financial stability.

Observing that a vibrant private sector will be essential for client countries to recover, create jobs, and embrace economic transformation, the communique urged the World Bank Group to continue its work to help crowd-in private capital and finance, and to support the private sector.

Earlier in his address to the Development Committee, World Bank Group President David Malpass said the world is developing a better line of sight forward, and our collective efforts to poverty, climate change, and inequality will be the defining choices of our age.

"It''s time to move urgently toward opportunities and solutions that achieve sustainable and broad-based economic growth without harming climate, degrading the environment, or leaving hundreds of millions of families in poverty," he said.

Malpass strongly welcomed the G20''s decision to extend the DSSI to end-2021.

"We are working closely with the IMF to support the implementation of the G20 Common Framework, as detailed in this joint paper. I welcome the clear statement in the G20''s communique that the need for debt treatment, and the restructuring envelope that is required, will be based on an IMF/World Bank Debt Sustainability Analysis as an input to the creditor committee deliberations," he said.

To recover from COVID-19, we will need integrated, long-run strategies that emphasise green, resilient, and inclusive development (GRID), Malpass said.

"This must be aligned with the need for policies that help countries increase literacy, reduce stunting and malnutrition, ensure clean water and energy access, and provide better healthcare," he said.

"We must help countries improve their readiness for future pandemics. We need to help them accelerate the development and adoption of digital technologies. We need to work to improve and expand local supply chains and strengthen biodiversity and ecosystems," Malpass said. PTI LKJ KJ SCY

Disclaimer :- This story has not been edited by Outlook staff and is auto-generated from news agency feeds. Source: PTI

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IMF, World Bank urged to ensure timely delivery of safe & effective COVID vaccines across countries - Outlook India

Kenyas economic problems are not economic in nature. They are political. And theExecutive is not the only one to blame for this economic muddle. Parliament is an integral part of the problem. It has failed the Constitution and the people of Kenya by not exercising its constitutional mandate of controlling wanton borrowing and spending of the Executive.

President Uhuru Kenyatta must admit that his government has made costly economic and fiscal policy management decisions in the past eight years. He must focus his remaining short time in office to lead the country towards an economic stabilisation and recovery path.

The country needs a coherent evidence-based economic stabilisation and fiscal consolidation plan that includes seeking to negotiate and agree with creditors to suspend debt servicing for at least three years with a commitment to immunise core recovery plan from the political cycle.

The National Treasury bizarrely prepared 2020/2021 financial budget that was completely unhinged and divorced from the reality of the devastating Covid-19 pandemic. The budget priorities should be overhauled in special supplementary budget for the remaining part of the financial year. This is not the moment for huge capital expenditure on mega projects.

The FY 2020/2021 budget ought to have been informed by realities on the ground;Covid-19 andits socio-economic impacts. That is where money should have been directed to. That is what all responsible governments are doing the world over. Unfortunately the supplementary budget tabled before Parliament has adopted a 'business as usual attitude'.

The national government must completely overhaul the current Third Medium Term Plan (MTP III) 2018-2022. The existing economic conditions, Covid-19 devastation, shrinking revenue and the debt nightmare have rendered it irrelevant and redundant.

The National Treasury must prepare and present to Parliament an interim transitional Mid-Term Framework plan and budget for the FY 2021/2022. This process must also be carried by county governments.

The FY 2021/2022 budget must purposefully be about addressing the unprecedented health, economic and fiscal shocks occasioned by Covid19. There has to be intensive public participation and consultation. The new MPT should adopt and be guided by the principles of zero?based budgeting to ensure the country drastically reduces all expenditure that it can no longer afford.

Covid-19 has laid bare the stark realities of deep-seated inequalities, inequities and vulnerabilities in the society. The new MTP must reflect the constitutional reality that failure to restructure, align and reorder the old system of national planning and economic policy in accordance with the devolved system of governance and county economic development, poses the greatest economic and financial risk to our country. This is exacerbated by huge debt distress and budget deficit.

Counties must be the central drivers of the new MTP. This is because social and economic devolution is about people managing their local development affairs, developing their potential and setting their own development priorities sensitive to local realities.

The greatest potential for development support exists at the county level, with a focus on attracting investments, creating jobs and boosting demand. A devolved unit's role has expanded from providers of public goods and basic social services to include local economic development initiatives.

Forensic audit

There is urgent need for the National Treasury to open the debt register to an independent international agency for thorough forensic audit to see which debts are genuine, and which ones ended in the pockets of a few people. The comprehensive forensic audit of Kenya's debt will ascertain the true situation before debate on raising the borrowing ceiling can progress. It's foolhardy to proceed and raise the borrowing ceiling without a clear debt picture and its implications on economy.

The national and county treasuries must develop and enforce a public expenditure and financial accountability tool to deliver on three main budgetary outcomes: Aggregate fiscal discipline; strategic resource allocation and efficient use of resources for service delivery.

It will not be easy to return the economy and the lives of Kenyans to where they were before Covid-19. Kenya needs to forge new economic and fiscal social contract. This will require intensive participation and consultation between the people, businesses, the two levels of government, media and civil society in order to rebuild a more productive and equal prosperous society.

-Mr Ndungu is executive director, International Centre for Policy and Conflict. @NdunguWainaina

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Only tough choices will save economy - The Standard

CHARLOTTE, N.C.--(BUSINESS WIRE)--Bank of America today announced a goal of deploying and mobilizing $1 trillion by 2030 in its Environmental Business Initiative in order to accelerate the transition to a low-carbon, sustainable economy. This commitment will anchor a broader $1.5 trillion sustainable finance goal by both environmental transition and social inclusive development purposes, spanning business activities across the globe.

The private sector is well-positioned to ensure that the capital needed at the scale it is needed can drive the transition to a low-carbon, sustainable economy, said Bank of America Vice Chairman, Anne Finucane, who leads the companys environmental, social and governance (ESG), sustainable finance, and public policy efforts. We will meet our commitment by working with clients to provide lending, capital raising, advisory and investment services, and to develop financial solutions and drive innovation to ensure the transition to a sustainable economy.

Bank of Americas broader $1.5 trillion sustainable finance target is consistent with the United Nations Sustainable Development Goals (UN SDGs), and will spur transformative change nationally and around the world. Beyond the $1 trillion climate-related finance, the balance of the sustainable finance goal is focused on social inclusive development, scaling capital to advance community development, affordable housing, healthcare, and education, in addition to racial and gender equality.

We stand alongside our clients in helping drive the transition in sustainable lending, investing, and markets activity, said Chief Operating Officer Tom Montag, who co-chairs Bank of Americas Sustainable Markets Committee with Finucane. Bank of America will continue to mobilize players across the entire financial system to increase the flow of capital.

Environmental Business InitiativeTodays announcement increases Bank of Americas 2019 commitment of $300 billion to low-carbon, sustainable business initiatives, to $1 trillion by 2030 as part of its Environmental Business Initiative. This commitment advances an environmental transition across sectors to solutions in energy efficiency, renewable energy, sustainable transportation, resource efficiency, sustainable water and agriculture as well as improved forestry and pollution control measures. Since launching the Environmental Business Initiative in 2007, Bank of America has deployed more than $200 billion to low-carbon, sustainable business activities, including expanding its asset-based lending, tax equity investment and capital raising activities across current and emerging clean energy and power, transportation and other industry sectors important for environmental transition. Todays news follows the companys recent announcement to achieve Net Zero before 2050.

Leading innovation and development in Sustainable FinanceFinucane and Montag co-chair the companys Sustainable Markets Committee, which collaborates across business lines to deliver innovative financing solutions in support of the United Nations Sustainable Development Goals. The companys sustainable finance highlights include:

A top issuer of Green, Social and Sustainability bonds: In 2020, Bank of America issued a $1 billion corporate social bond to support those on the front lines of the coronavirus health crisis; and a first-of-its kind $2 billion equality progress sustainability bond to help advance racial equality, economic opportunity and environmental sustainability. Since 2013, the company has issued $9.85 billion in eight corporate Green, Social and Sustainability bonds.

For recent highlights of the banks ESG efforts, see page 38 of the Bank of America 2020 Annual Report. Further information can be found in the 2021 Proxy Statement and at http://www.bankofamerica.com/environment.

Bank of AmericaAt Bank of America, were guided by a common purpose to help make financial lives better, through the power of every connection. Were delivering on this through responsible growth with a focus on our environmental, social and governance (ESG) leadership. ESG is embedded across our eight lines of business and reflects how we help fuel the global economy, build trust and credibility, and represent a company that people want to work for, invest in and do business with. Its demonstrated in the inclusive and supportive workplace we create for our employees, the responsible products and services we offer our clients, and the impact we make around the world in helping local economies thrive. An important part of this work is forming strong partnerships with nonprofits and advocacy groups, such as community, consumer and environmental organizations, to bring together our collective networks and expertise to achieve greater impact. Learn more at about.bankofamerica.com, and connect with us on Twitter (@BofA_News).

For more Bank of America news, including dividend announcements and other important information, visit the Bank of America newsroom and register for news email alerts.

http://www.bankofamerica.com

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Bank of America Increases Environmental Business Initiative Target to $1 Trillion by 2030 - Business Wire