Recent G7 Meetings: Focused on Growth

It has been a busy month, dominated by two trips to Japan, firstly for the G7 Finance Ministers and Central Bank Governors (FMCBG) Meeting in Niigata, and then the G7 Leaders’ Summit in Hiroshima. My focus at the G7 and throughout the month has been on the urgent need for policies that drive growth.?

For developing countries, the prospect of dangerously slow global growth, high debt burdens, the huge drawdown of global capital by advanced economies, and the upward shift in interest rates, is creating sharp reversals in development. In Niigata, I was pleased to meet with finance ministers and central bankers from the countries of the G7. The World Bank Group has been working closely with the G7 countries and other key partners to provide larger flows to developing countries via support for food, health, climate costs, education, energy, and environment.?

While in Niigata, I had a good conversation with Martin Soong of CNBC’s Squawk Box Asia where we discussed the increased debt burden costs in developing countries along with rollover risks that threaten debt sustainability. The debt-to-GDP ratios for the advanced economies are higher than ever before, and developing countries have high debt burdens. That means the global economy has to work much harder just to pay back money that’s already been borrowed.?

I returned to Japan for the G7 Hiroshima summit where leaders tackled the challenges of slow growth and high debt, as well as Russia’s invasion of Ukraine, and discussed China's expansion and its impact on development. I highlighted the World Bank Group’s close work with G7 countries and other key partners on a wide range of shared interests including infrastructure, debt, private sectors, climate, and preparedness. A high priority for all of us is to increase private capital flows to developing countries for both development and climate. I also highlighted our efforts with China on marine plastic pollution reduction as an opportunity for further work to reduce greenhouse gas emissions. As this was my last G7 meeting, I thanked leaders for support over the last six years spanning from my time at the U.S. Treasury and World Bank and appreciated the recognition of my efforts.

In my remarks to the G7 Hiroshima Summit Side Event on the Partnership for Global Infrastructure and Investment, I focused on the vast new resources required for infrastructure development and the creation of an infrastructure asset class. There are three main steps to achieve this: standards, verification of results, and standardization of contracts and techniques. This can make thousands of individual assets available to investors.

In Hiroshima, I was very pleased to meet with President Zelensky of Ukraine. In response to Russia’s invasion, the World Bank Group has mobilized $23 billion for Ukraine. We are supporting key policies to provide relief during the war and to prepare the economy for reconstruction and recovery. The World Bank Group will continue supporting the people of Ukraine through urgent repair projects and coordination with the government on recovery and reconstruction efforts.

At the end of the Summit, I had the opportunity to visit the Peace Memorial Park and Museum—a sober reminder of the devastation of human suffering and necessity to avoid war, conflict, and violence around the world.

Back in the United States, I had a great, wide-ranging discussion with John Diamond at Rice University’s Baker Institute. We touched on challenges facing the developing world today, including the lack of action on growth, along with declining access to energy and electricity.

While in Houston, I also met with Secretary Baker, who led much of my early work on economics and finance and made so many contributions to world freedom.

As I approach the end of my presidency of the World Bank Group on June 1, I’ve had good engagements with the Board of the World Bank Group on May 23 and a farewell townhall with staff to reflect on the past four years. In that time, the World Bank Group has provided $440 billion in financing for development, an expansion of 35%, while maintaining budget discipline.

From providing record financing to developing countries, promoting debt transparency and sustainability, strengthening management, warning of global weakness, and more than doubling the amount and impact of our climate finance, I’m proud of the accomplishments the World Bank Group has made during my tenure.