Insights | April 2024

It's April, time of cherry blossoms, pollen, and the IMF-World Bank Spring Meetings, where global leaders focused on key priorities of our post-pandemic world: emphasizing the need for a strategic soft landing to avoid a recession, enhancing global financial cooperation, and leveraging private capital for tackling climate change and tech advancements in developing nations.

With this as a backdrop, this month's digest dives into key global discussions and initiatives from recent high-profile meetings and reports, all geared toward steering us towards a sustainable economic future: from the 世界银行 "Great Reversal" on the intertwined crises that have hit the 75 IDA-eligible economies hard, to World Economic Forum discussions on the importance of rebooting the global economy in ways that foster inclusivity and sustainability.

On the tech front, @Google's "AI Sprinters" report highlights the potential of artificial intelligence to transform lives in developing countries by tackling issues from healthcare to food security.

So, I hope you enjoy another newsletter that is pushing for #growth that's not just smart, but also inclusive and sustainable.

1. One week during Spring | Atlantic Council

• The IMF-World Bank Spring Meetings highlighted extensive discussions on managing the global economic recovery, aiming for a soft landing to mitigate the risk of recession.
• The meetings underscored a pivotal moment, especially in light of the geopolitical uncertainties and economic challenges exacerbated by the COVID-19 pandemic and recent conflicts affecting global trade and economic stability.
• Significant progress was made in terms of policy adjustments and financial commitments, with calls for greater cooperation among global financial leaders and highlighting the critical role of private capital.

Bottom-line: this year’s #WBGMeetings set the stage for future actions, with a focus on implementing policy changes and effectively using the pledged funds to support critical areas like climate change adaptation and technological innovation in developing economies.

?

2. Getting the most vulnerable back on track | The World Bank

• The World Bank released a report called “The Great Reversal: Prospects, Risks, and Policies in International Development Association Countries” with new trends and data on developing countries.
• Despite significant strides in various developmental goals in the early 21st century, the 75 economies eligible for support from the International Development Association (IDA) have experienced a substantial setback due to the COVID-19 pandemic and other overlapping crises.
• This period has seen the largest divergence in growth rates between these countries and wealthier economies since the turn of the century, with one-third of IDA countries being poorer now than before the pandemic.

Bottom-line: persistent high poverty levels, increased hunger, and fiscal constraints call for necessary rising investments in developing countries.

?

3. A ‘north star’ for inclusive and sustainable growth | WEF

• The World Economic Forum’s Special Meeting on Global Collaboration, Growth and Energy for Development highlighted the urgent need to restart the global economic growth engine in a manner that benefits all sectors of society, especially in the wake of ongoing geopolitical and geoeconomic challenges.
• This need arises from the complex environment marked by high numbers of violent conflicts, which have led to humanitarian crises and disrupted global supply chains, impacting food and fuel availability.
• Given the stark realities facing mainly low-income and least-developed countries, we must increase the ability of these countries to respond effectively to economic pressures.

Bottom-line: WEF suggests a shift from thinking of economic growth as an end goal to growth as part of a virtuous cycle that incorporates sustainability, innovation, resilience, and inclusiveness.

?

4. What opportunities does AI present for developing countries? | Google

• Google has released a report titled AI Sprinters, which outlines strategies for developing countries to leverage the potential of artificial intelligence.
• The report emphasizes the transformative power of AI in addressing challenges unique to developing countries, such as infrastructure deficits, unemployment, education, healthcare, and food security.
• AI applications are already making an impact, with examples including traffic optimization in Rio de Janeiro, scaling business services in Southeast Asia, aiding farmers in Africa with early locust detection, and improving healthcare outcomes for women in developing regions.

Bottom-line: governments, international institutions, and development agencies should explore innovative AI applications to close the digital divide and significantly enhance millions of lives.