World Bank urges reforms

Amid increasing uncertainty from trade tensions and slowing global growth

OSAKA: Uncertainty from trade tensions and slowing global growth is increasing the need for developing countries to pursue reforms that make them more attractive to private investment, said World Bank President David Malpass. Malpass, who is attending the G20 Leaders’ Summit in Osaka, Japan, told Reuters in an interview that he will urge countries to take bolder steps to improve their business climates to allow private firms to compete better with state-owned companies and generate more profitable growth, innovation and jobs. The World Bank in its annual Global Economic Prospects report earlier this month forecast that slowing trade and investment flows would cut global growth this year to 2.6%, down 0.3 percentage point from previous forecasts. The International Monetary Fund (IMF) has forecast a similar slowdown, driven primarily by increased tariffs, primarily between the United States and China. “My message to people at the G20 is the idea that development is critical in this environment and urgent. It’s important that policy changes be considered that will create more potential for private-sector growth,” Malpass said in a telephone interview from Osaka.  

Published in The Express Tribune, June 30^th, 2019.

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