Developing countries not immune to global uncertainty: WB Chief

Ahead of the annual meetings in Tokyo, the World Bank President Jim Yong Kim on Thursday warned that developing countries, which have been driving world’s growth, are not immune to the increased uncertainty in the global economy.

“We are in challenging times. Food prices remain high and volatile; growth in high-income countries is weak; and developing countries, which have been the engine of growth, will not be immune to the increased uncertainty in the global economy,” said Kim, for whom the 2012 IMF and World Bank annual meetings will be his first as he was appointed only about four months ago.

Noting that the world is interconnected and knowledge gained in one part of the world can apply to another, Kim said: “Things that are happening in one part of the world, such as in Europe, can have huge impacts in other parts of the world.”

Developing...

The World Bank Chief said the economic announcements emanating in recent weeks have been sobering. “Everyone is vulnerable during times of uncertainty, but especially the poor who have few, if any, safety nets and resources and live from day to day,” Kim said.

He said the World Bank Group’s job now is to make sure the growth seen over the last five years in developing countries in Africa and Latin America and Asia is not destroyed by further worsening in the situation.

As part of starting a dialogue around barriers and solutions to ending poverty, the World Bank has launched a global online conversation: a ‘What Will it Take to End Poverty?’ campaign in the lead-up to these meetings.

“We are crowd-sourcing ideas and comments through social media and video. It’s a great way to drive a conversation around real, practical results. Because ultimately this is about results. I am asking our teams – ‘what can we do to fundamentally change the arc of history to end absolute poverty more quickly than it is currently predicted?’” Kim said.

He said it was important as the World Bank’s job was to have a catalytic effect on poverty.

“The good news is that around the institution, the World Bank Group, the answer has been a very strong yes, we can bend the arc of history. That’s why we came to work at the World Bank – we want to fight poverty and we want to make a difference in history. It’s been my life’s work and I’ve worked in situations of great poverty and this organisation is embracing this fundamental mission,” Kim said.