Department of Finance (DOF) Secretary Ralph Recto presided over the Intergovernmental Group of Twenty-Four (G-24) on April 16 as Chair of the Board of Governors where he called upon the international financial institutions to ramp up support for developing countries.
In a statement on Thursday, the DOF said that during the meeting, Recto urged the World Bank Group (WBG) and the International Monetary Fund to intensify efforts in assisting developing nations to mitigate the factors threatening their growth prospects.
Recto said this entails immediate access to short-term liquidity and affordable long-term financing solutions.
“Alarmingly, one in every four developing countries is now poorer than before the pandemic. Any slowdown in global economic performance will surely hit the developing economies the hardest. This poses a grave threat to the peace, economic security, and prosperity of all our people,” he said.
Recto cited the need for innovative and responsive financing solutions that will help developing countries navigate the challenges ahead.
“The ambitious replenishment, expedited disbursement, and efficient delivery of the International Development Association, or IDA21, is an urgent matter as it serves as a critical lifeline for developing nations,” he added.
IDA is part of the WBG that provides grants and low-interest loans for the world’s low-income countries.
Recto warned that without improvements to financing conditions in the short term, decades of individual and global efforts to eradicate poverty and inequality, combat climate change, and invest in growth-enhancing infrastructure projects, will be put to a halt, if not reversed.
“We are counting on this meeting to set unprecedented multilateral cooperation. Together, let us find transformative solutions that will reclaim our gains and steer the global economy faster and further on the road to inclusive and irreversible growth,” Recto said.
In response, IMF Managing Director Kristalina Georgieva and WBG President Ajay Banga both shared the institutions’ respective programs aimed at providing wider access to concessional financing and supporting developing countries in sustaining productivity, enhancing long-term growth prospects, and increasing resilience to economic shocks.
Formed in 1971, the G-24 helps coordinate the positions of developing countries on international monetary and development finance issues to ensure that their interests are adequately represented in negotiations on international monetary matters.
The Philippines serves as the Chair of the G-24 Bureau for 2023-2024.
Though originally named after the number of the founding member-states, the G-24 now has 29 members, namely: Algeria, Argentina, Brazil, China, Colombia, Congo, Côte d’Ivoire, Ecuador, Egypt, Ethiopia, Gabon, Ghana, Guatemala, Haiti, India, Iran, Kenya, Lebanon, Mexico, Morocco, Nigeria, Pakistan, Peru, Philippines, South Africa, Sri Lanka, Syria, Trinidad and Tobago, and Venezuela. (PNA)
