The Fifth Wave of Debt Crisis Has Hit the World, Says World Bank President
According to World Bank President David Malpass, a “fifth wave of debt crisis” is engulfing the entire planet “and demanded more assistance for the struggling nations. According to him, the bilateral and private debt service payments of nearly $44 billion will be due in 2022 alone.
I am concerned about the debt levels and the particular countries, he declared. Some of the world’s poorest nations will have to pay more in debt service payments from bilateral and corporate debt in 2022 alone than they could ever hope to receive in foreign aid.,”
The world is currently “in the midst of what I think is a fifth wave of debt crises,” Malpass continued. Separately, World Bank President David Malpass stated to reporters on Friday that India has been a pioneer in digitalisation that strengthens and widens the social safety net. Malpass asserts that India, like other developing nations, is affected by rising interest rates in the global economy, inflation, and the effects of climate change, as seen most recently by flooding. However, India was able to widen its social safety net throughout the COVID-19 crisis.
According to him, the nation’s poor have more money in their pockets than was indicated by the World Bank’s most recent report on global poverty. He noted that the efficiency of social safety nets is crucial when it comes to reducing poverty in other regions of the world. The World Bank collaborated closely with India to create a focused social safety net.
Malpass cited a World Bank-cohosted conference that had just taken place at the UN when he claimed that digitalization strengthens social safety nets and is crucial for developing nations to keep up with technology. According to him, India has been a pioneer in this area. Malpass responded to a query regarding India’s assumed G-20 leadership in December by stating that debt could be a potential area of focus.
I believe we can make headway toward a more useful common framework at this time, he remarked. He claimed that India is a significant creditor in several of the deeply indebted African nations, including Sri Lanka. Therefore, he added, India has a chance there as the G-20 chair.
He added that India is aware of countries’ debt hardship and stated, “I’ve spoken with Prime Minister (Narendra) Modi about that.” Thus, he continued, it is extremely pertinent. Malpass continued, “The second, I mention, is education, where India has been a leader in pushing forward. They used the data from learning Poverty Index, which has been showing a very concerning increase in educational poverty, at another significant conference on education that we co-hosted at the UN last week.”
According to him, this indicates that 70% of children in underdeveloped nations are unable to read the most basic text. The G-20 has a great potential here, he remarked. This is a significant chance for G-20 India. He claimed that India has been a pioneer in education.
Naturally, a key topic of debate will be the environment (in G-20). The best ways to minimize greenhouse gas emissions will continue to be the focus of the World Bank’s work. According to what we observe on a daily basis, this presents a significant issue for both the developed and developing worlds. The World Bank president stated that climate change is crucial for both India and the G 20 as a whole.