COVID-19, Russian war undermine countries like Ghana, says IMF Chief
The International Monetary Fund (IMF) has acknowledged the increased frequency of exogenous shocks that affect innocent bystanders in the world today, according to Managing Director Kristalina Georgieva.
In an interview, Georgieva highlighted the impact of events such as the COVID-19 pandemic and conflicts such as the Russia-Ukraine war, which have significantly undermined countries like Ghana, and many other nations despite the many good policies put in place by such countries prior to the pandemic and the war.
Georgieva emphasizes the need for the IMF to work faster and more effectively with affected countries.
Georgieva’s comments come amid ongoing efforts by the IMF to support countries hit hard by the pandemic and the Russia-Ukraine war.
The organization has been providing emergency financing to help countries deal with the economic fallout of the crisis, and has been urging governments to provide additional fiscal support to mitigate the impact on vulnerable populations.
However, Georgieva also recognizes the need for the IMF to undergo significant changes in order to improve its ability to help countries in need. She advocates for a recognition that responsibility has increased, and for partnerships that may have been unthinkable in the past.
“We always have to strive,” Georgieva said. “We can do differently, we can do better, and we can reach out to partners and take things that maybe were unthinkable before. We should not hide behind 1945 and say all because of this, we can. When there is a recognition that our responsibility has gone up, institutions need to change – big change, I agree.”
Georgieva’s call for change is not unique to the IMF. As the pandemic has laid bare many of the longstanding inequalities and weaknesses in the global economic system, there have been increasing calls for reform and greater cooperation among countries.
The IMF has a critical role to play in this process, as one of the key institutions responsible for managing the global financial system. Its actions can have significant impacts on the lives of people around the world, particularly in the poorest countries.
Georgieva’s vision for the future of the IMF is one of greater partnership and cooperation, and a willingness to take bold action to address the challenges of the 21st century.
As she notes, this will require significant change, but the stakes are high, and the IMF has a crucial role to play in shaping a more just and sustainable future for all.
