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The International Monetary Fund (IMF) and the World Bank are gathering in Marrakech, Morocco this week for their annual meeting with a heavy agenda. The Fund-Bank meeting comes to the continent after a long gap of 50 years. There was uncertainty of holding the meeting on time and its likely postponement because of the recent earthquake in Morocco.
The International Monetary Fund (IMF) and the World Bank are gathering in Marrakech, Morocco this week for their annual meeting with a heavy agenda. The Fund-Bank meeting comes to the continent after a long gap of 50 years. There was uncertainty about holding the meeting in time and its likely postponement because of the recent earthquake in Morocco.
The meeting will finally kick off on Monday. The choice of location is particularly significant given the numerous challenges Africa is facing. Several countries in the continent are struggling with the debt crisis coupled with the consequences of climate change and a poverty rate which is reducing at a slower rate than elsewhere in the world.
During the meeting’s opening speech, delivered Thursday in Abidjan, Côte d’Ivoire, IMF Managing Director Kristalina Georgieva stressed that a prosperous 21st century required a prosperous Africa. One of the first measures to be discussed is the creation of a third seat granted to African countries on the boards of directors of each of the two institutions since the main goals of both institutions are poverty reduction, helping countries in difficulty, and, above all, climate financing.
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The continent is facing a funding problem. Main donor countries are not in favor of a capital increase that would oblige them to fork out more or add more clout to the large emerging countries like China and India. Both the IMF and the World Bank spend billions in loans and assistance to support struggling economies. An additional US$50 billion is expected to be confirmed this week for use over the next ten years. World Bank President Ajay Banga hopes to bring the total to US$100 or US$125 billion, thanks to contributions from advanced economies without having to adjust the institution’s capital structure. Of late, both organizations have been receiving a fair share of criticism from various quarters. the United Nations Secretary-General Antonio Guterres voiced his criticism, saying the World Bank and the IMF’s responses to the COVID-19 pandemic were a glaring failure that left dozens of countries indebted. The week in Marrakech is unlikely to see any major breakthroughs, especially on the subject of climate financing, with NGOs criticizing what they see as a lack of will on the part of the institutions.
