Finance Minister calls for stepping up international cooperation to speed up recovery

Manama, Apr. 9 (BNA): Minister of Finance and National Economy, Shaikh Salman bin Khalifa Al Khalifa, has praised the crucial role played by the World Bank Group in facing the repercussions of the novel Coronavirus pandemic (COVID-19), hailing the bank’s swift response to the measures and precautionary measures taken by countries to confront the virus and mitigate its effects on the global economy. The minister stressed that joint international cooperation is the basis for the current period so that countries can continue their efforts towards the aspired for economic recovery. Shaikh Salman bin Khalifa made the statements while addressing the World Bank’s Development Committee, on behalf of the Arab Group and the Maldives, as part of his participation in the Development Committee meeting, held remotely today on the sidelines of the annual meetings of the World Bank Group (WBG) and the International Monetary Fund (IMF). The minister pointed out that the current situation requires developing an action plan that would meet the priorities of low-income countries and those of fragile and conflict-affected regions that have witnessed major economic repercussions caused by the pandemic, by urging these countries and regions to increase public spending in order to stimulate their economic activities. He stressed the importance of protecting the affected health systems in those countries, as well as accelerating their access to vaccines against the Coronavirus and manufacturing them locally, in addition to creating more diverse and comprehensive job opportunities aimed at involving women in the workforce and creating job opportunities for youth. Shaikh Salman bin Khalifa said that the Arab Group welcomes the call of the World Bank Group, the International Monetary Fund and the G20, chaired by sisterly Saudi Arabia, to extend the debt relief period for low and middle-income countries, which was launched under the joint international framework with the aim of achieving financial sustainability. He also stressed the need to expand the base of countries benefiting from this programme, based on a specific evaluation of each country, as this expansion aims to avoid an increase in the fiscal deficit, achieve flexibility and increase the pace of economic recovery. The minister indicated that the Coronavirus pandemic has exacerbated food security challenges at the global level, with the effects expected to continue beyond 2021, calling for an integrated approach to improve food security and provide food supplies to the neediest groups, to strike a balance between emergency relief and ensuring long-term developmental impact in this aspect globally. The Finance and National Economy Minister stressed the importance of launching immediate reforms to support the water resources sector in the Middle East and North Africa region, which is considered one of the most vulnerable regions in the world regarding water scarcity, as 60% of its population lives in areas suffering from great water stress. Shaikh Salman bin Khalifa welcomed the World Bank Group’s Green Growth Strategy, stressing its continued support to efforts to address the repercussions of the Coronavirus (Covid-19) pandemic, by promoting flexibility, all-inclusiveness and sustainable development, which are among the essential prerequisites of economic growth recovery. The Development Committee stressed the importance of joint WBG and IMF to mitigate the effects of COVID-19, through providing sustainable technical and financial support for the hard-hit countries, in addition to extending more support to the private sector. The committee also called on the World Bank to support countries in purchasing vaccines, and ensure that developing countries have quick and easy access to vaccines. The meeting also highlighted the importance of the World Bank’s role in assisting countries to deal with the issue of accumulating debts as a result of the pandemic, especially for poor and middle-income countries. It also urged the World Bank to continue launching initiatives that reduce the effects of climate change, and focus on achieving economic growth based on sustainable development. The members also stressed the need for the continuity of the World Bank’s programmes aimed at providing aid in a timely manner, in order to help create a sustainable recovery for countries, especially the poor ones.