World Bank’s strategy to fight economic crisis

Written by The Frontier Post

Recently, the World Bank has announced a comprehensive strategy on global response to the ongoing food security crisis, with up to $30 billion in existing and new projects in areas such as agriculture, nutrition, social protection, water and irrigation. According to World Bank Group President David Malpass, this financing will include efforts to encourage food and fertilizer production, enhance food systems, facilitate greater trade, and support vulnerable households and producers. Chief Economist of the world bank was of the view that countries should make clear statements of future output increases in response to Russia’s invasion of Ukraine along with concerted efforts to increase the supply of energy and fertilizer, help farmers increase plantings and crop yields, and remove trade barriers, divert food to biofuel, or encourage unnecessary storage.

The ongoing economic crisis has caused serious challenges forthe global community including the governments, global financial and tradeinstitutions, NGOs as well as human rights defenders across the globe.  The developed nations are capable of managingthe current crisis through local resources or coalitions of partners and allieswhile developing nations and least developed countries (LDCs) are lookingtoward international donors and  globalfinancial regulators including the World Bank Group, IMF, Asian DevelopmentBank and regional consortiums to help them mitigate the disastrous effects ofglobal economic crisis in their countries.  Earlier, World Bank Group and IMF assisted thethird world nations in their fight against the COIVD-19 Pandemic throughprovision of financial aid, vaccines as well as development grants to reducethe effects of the pandemic.

Currently, the World Bank Group has come up with an ambitious plan of $12 billion of new projects and $ 18.7 billion of undisbursed balances for the next 15 months to respond to the food insecurity in the developing and least developed nations. Apparently, the global financial regulator is contributing enough to assist the least developed nations and vulnerable communities in the world, hence it is the responsibility of the rulers to reduce their unproductive expenditures, make cuts on their allowances and provide relief to the masses at this odd time.

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The Frontier Post