World leaders, finance ministers, heads of corporations and development groups are meeting virtually for the World Bank and IMF Spring Meetings. The International Monetary and Financial Committee (IMFC), the IMF policymaking body, discussed policy responses to the global COVID-19 economic crisis, including tax, aid, vaccines, Special Drawing Rights and debt processes to support developing countries.
Eric LeCompte the Executive Director of Jubilee USA Network and a United Nations finance expert, who monitors the IMF, releases the following statement on the IMFC Communiqué and IMF and World Bank Spring Meetings:
"This week, the IMF released analysis that forecasts stronger recovery centered on two countries, the United States and China. The same IMF analysis notes most countries will continue to struggle and developing countries will lose decades of development gains.
“Wide differences in resources between rich and poor countries sow the seeds of a more unequal post-COVID economy.
“The support for the creation of $650 billion in emergency reserve funds, or Special Drawing Rights, means new resources for developing countries struggling with the pandemic.
"Thanks to the United States Treasury and the IMF, consensus is growing on a global minimum corporate tax.
"A global minimum corporate tax means new revenues to fight poverty and address inequality.
"A global digital tax agreement can provide additional revenues for coronavirus-hit developing countries.
"Almost 95 million people entered the ranks of extreme poverty due to the pandemic over the last year. As developing countries face decades of lost development gains, we need to do more to ensure that all countries recover, not just rich countries.
"According to the IMF, the entire future of the global economy hinges on the pace of global vaccination.
“Debt relief is not moving quickly enough to address the needs of all developing countries struggling with the pandemic.
"I'm incredibly concerned by references in G20 and IMF statements about ending debt relief measures as suffering increases in developing countries.
“The poorest countries will need to spend $450 billion over five years to fight the pandemic and restart some growth. Only significant debt cuts and aid can get them there.
"As deficits and debts rise in many developing countries, rising interest rates in wealthy economies could precipitate another global financial crisis.
"It's critical that world leaders are placing more emphasis on solving the climate crisis as we tackle the health and economic crises spurred by the coronavirus.
"In the next months, we must focus more on moving forward processes to prevent the next crisis. Had world leaders implemented past global agreements on crisis prevention, we'd have the tools in place to deal with the current crisis."
Read the IMFC Communiqué here.
Read Jubilee USA's release on 260 faith, labor, human rights, and other groups pressing the IMF, G20 and White House on a COVID response here.
Read Jubilee USA's statement on the G20 Finance Ministers Meeting here.
Read Jubilee USA's release on the IMF's Global Financial Stability report here.
Read Jubilee USA's release on the IMF's World Economic Outlook report here.