World Bank President David Malpass attends the “1 + 6” Roundtable at Diaoyutai State Guest House in Beijing, China on November 21, 2019. REUTERS / Florence Lo

WASHINGTON, Oct.11 (Reuters) – The World Bank hopes to raise $ 100 billion in grants for the International Development Association’s fund for the poorest countries to deal with “tragic development returns” caused by the pandemic COVID-19, its president David Malpass said on Monday. .

The Multilateral Development Bank projects global growth of 5.7% in 2021 and 4.4% in 2022, but Malpass said disparities between advanced economies and developing countries were widening and had delayed efforts to reduce extreme poverty year after year, and in some cases decades.

“Incoming high-frequency data points to a slowdown in global activity, amid persistent supply chain bottlenecks and COVID-19 outbreaks,” said Malpass. “The outlook is bleak for much of the developing world, with lagging vaccination rates, inflation, limited political support, too few jobs and shortages extending to food, water and electricity. “

Malpass said inequality was increasing dramatically, with per capita income in advanced economies expected to increase nearly 5% in 2021, but only 0.5% in low-income countries.

He said advanced economies were already reaching pre-pandemic levels of economic growth, but developing countries’ output would be nearly 4% lower than projections before the pandemic next year.

“We are seeing what I call tragic reversals of development in many dimensions,” he said. “Progress in reducing extreme poverty has been delayed by several years, some by a decade.”

To address growing disparities, the World Bank is seeking to raise $ 100 billion in grants from advanced economies to replenish the IDA fund, he said, embracing a recommendation made earlier this year by African ministers. finances.

Malpass also called for efforts to tackle the unsustainable debt levels of many developing countries, noting that the debt burden of low-income countries has increased by 12% to a record $ 860 billion in 2020. .

Reporting by Andrea Shalal and David Lawder; Editing by Emelia Sithole-Matarise

Our standards: Thomson Reuters Trust Principles.

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