WB, IMF urged to adopt new solutions to offset impact of global slowdown

MANILA, Philippines — The Philippine government has called on the World Bank and the International Monetary Fund (IMF) to adopt new solutions that will assist developing countries amid the expected slowdown in global economic performance, according to the Department of Finance (DOF).

In a statement during the 102nd meeting of the Intergovernmental Group of 24 (G-24) in Washington last week, Finance Secretary Carlos Dominguez said the Philippines is concerned over the consequences of the trade tension between the US and China.

He also flagged the rise of protectionism and negative interest rate policies, as well as the increasingly debilitating effects of climate change and disruptive technologies.

“A slowdown in the world’s economic performance will have significant adverse effects on low-income countries and emerging economies. If present trends continue, all the work we have put in preparing our economies for competitive trade, improving our domestic efficiency, and maintaining the highest standards for fiscal discipline will fail to ensure inclusive growth,” the finance chief said.

Dominguez, who sits as the governor for the Philippines in the board, WB also noted that an estimated 47 percent of low-income developing countries are now facing debt distress.

“Development aid in the world has also dropped by 2.7 percent in 2018, with bilateral official development assistance (ODA) to least-developed countries falling by three percent. With ODA making up two thirds of external financing for countries who are most in need, we express our unease with how relevant states and institutions are responding to the impending global economic crises,” Dominguez said.

“We also feel compelled to state that the objectives of development assistance should not hover around neo-colonialist tendencies. International cooperation is a means toward shared prosperity, not the subjugation of vulnerable economies,” he said.