On May 26th 2022, World Bank Group’s President, David Malpass, and Masood Ahmed, President of the Center for Global Development, will hold a conversation about the array of global shocks, their impact on the most vulnerable communities—and the response they urgently demand.
From conflict to COVID to climate change, overlapping crises have created unprecedented challenges for developing countries. Debt vulnerabilities, rising inflation, higher energy prices and food insecurity are threatening to reverse development gains. These growing challenges require decisive policy action and sustained international cooperation on multiple fronts to ensure economic conditions improve in all countries, especially the poorest. David Malpass and Masood Ahmed will exchange views on macroeconomic and political instability; and what is required for economic transformation.
The Way Forward is an occasional series of in-depth discussions on development challenges and innovative solutions, hosted by World Bank Group David Malpass.
May 26th, 10:00 AM EDT (local time)
These impacts are damaging ocean health and threatening the livelihoods of billions of people. They also point to a critical lack of governance globally of this precious resource.
The war in Ukraine could not have come at a worse time, eroding global economic prospects as much of the world struggles to emerge from the COVID-19 pandemic. Among the immediate impacts of the war has been the surge in commodity prices, raising concerns over food and energy security.
The Russian Federation’s war with Ukraine has triggered a catastrophic humanitarian crisis and threatened the stability of geopolitical relations. Economic output in the Europe and Central Asia region is forecast to contract by more than 4.1% in 2022—the second major shock and regional recession in two years. Moreover, the war has added to mounting concerns of a sharp global growth slowdown. The economic impact of the conflict has reverberated through multiple global channels, including commodity and financial markets, trade and migration links, and confidence. Neighboring countries in the Europe and Central Asia region are likely to suffer considerable economic damage because of their strong trade, financial, and migration links with Ukraine and Russia. Pandemic disruptions amid rising COVID-19 cases in some major economies have contributed to financial and commodity market volatility, and could ultimately weigh on global growth prospects. The war has also raised the likelihood of a destabilizing wave of refugees, widespread financial stresses among some emerging and developing economies, a de-anchoring of inflation expectations, and food insecurity. A protracted conflict is likely to heighten policy uncertainty and fragment global trade and investment networks. Policy makers need to ensure that they are better prepared to handle future crises as part of a commitment to a comprehensive approach to bolster resilient, inclusive, and green development. They should fortify their macroeconomic policy buffers and institutions to strengthen stability; promote an inclusive and more equal recovery by strengthening their social protection systems to protect the most vulnerable, including the refugees; and keep their focus on improving energy efficiency and green transition to secure a sustainable future.
Among the most critical is the food price crisis, calling into question the affordability and availability of wheat and other essential staples.
There is no downplaying the blow that the war has dealt to food systems, already fragile from two years of COVID-19 disruptions, climate extremes, currency devaluations, and worsening fiscal constraints. Global and domestic food prices were already close to all-time highs before the war, and a large question mark looms over the next seasons’ harvests worldwide due to the sharp increase in fertilizer prices as well.
, not only wheat but barley, maize, and edible oil among others exported by these two countries.
“Whether we succeed in managing food price volatility and navigating our way out of this new crisis depends on national policies and global cooperation.”
Financing will support essential social services; combined total of World Bank-mobilized support for Ukraine now stands at more than $925 million
WASHINGTON, March 14, 2022— The World Bank today announced nearly $200 million in additional and reprogrammed financing to bolster Ukraine’s social services for vulnerable people. This comes on top of the $723 million mobilized for Ukraine and its people last week, of which $350 million has already been disbursed to Ukraine. This financing is part of the $3 billion package of support that the World Bank Group previously announced it is preparing for Ukraine over the coming months.
The combined total of support mobilized by the World Bank for Ukraine now stands at more than $925 million. As part of the mobilization efforts, Austria has contributed €10 million ($11 million equivalent) to the multi-donor trust fund (MDTF) set up by the World Bank to facilitate channeling grant resources from donors to Ukraine. This raises the current MDTF total to $145 million.
“The ongoing war continues to have severe human costs and has created financing gaps that jeopardize the ability of vulnerable people in Ukraine to meet basic needs,” said World Bank Group President David Malpass. “This rapid support will help to bridge those gaps during a time of extreme disruption as we work on broader support efforts for Ukraine and the region.”
While the full impact remains uncertain, the Russian invasion of Ukraine is causing a growing number of civilian casualties, destroying livelihoods, and damaging critical civilian infrastructure, including homes, water and sanitation, schools, health facilities and highways.
The World Bank in Ukraine