The Moroccan Minister of Economy and Finance, Ms. Nadia Fettah Alaoui, President of the African Caucus (formed of African finance ministers and central bank governors) urged the World Bank and the International Monetary Fund to rethink the financial architecture current world to deal with financing for development. needs of African countries.
The Moroccan Minister made this urgent call during the meeting of the African Consultative Group which she co-chaired in Washington DC with Ms. Kristalina Georgieva, Director of the IMF, during the 2022 BM-IMF Spring Meetings convened from April 18 to 24.
Ms. Fettah sounded the alarm about the vulnerabilities of African countries due to their high debt, food insecurity, difficulties in adapting to climate change and the war in Ukraine which triggered a spike in commodity prices. raw materials, energy and foodstuffs.
The statement released following the African Consultative Group meeting highlighted the need to protect the most vulnerable households from the impact of high food and energy prices, noting that the external shock is hitting the continent at a when most countries have limited fiscal space, with heightened debt vulnerabilities and risks.
In this difficult context, targeted, temporary and transparent support to vulnerable households using and further developing social safety nets would be the most appropriate solution, according to the press release.
“For this effort to succeed, governments in the region, the international community and the private sector must make concerted efforts to mobilize additional revenue and financing to support the recovery and implement the reforms needed to promote inclusive and sustainable growth. sustainability, achieving diversification, tackling the climate crisis and transitioning to a green economy,” the text emphasizes.
The African Consultative Group underscored the need to address the growing debt vulnerabilities of developing countries, particularly in Africa, and to find effective ways to alleviate the debt service burden. He also called for continuing to work together to strengthen the debt resolution architecture, in particular by improving the common framework for debt treatment and technical assistance within the framework of the multidimensional approach (MPA).
During her participation in the WB-IMF spring meeting, the Moroccan minister spoke with several senior officials of the WB and the Fund on the Moroccan financial inclusion strategy, the success of the vaccination campaign against covid- 19 and efforts to stimulate the economy and mitigate the impact of the global crisis. crisis.
She also addressed the WB-IMF development committee. As chair of a group of countries including Afghanistan, Algeria, Ghana, Iran, Pakistan and Tunisia, Ms. Fettah said: “We believe that harnessing digitalization to promote growth strong and inclusive is no longer a choice, but rather a compelling need.
She called for supporting economic transformation geared towards a green, inclusive and resilient future in developing countries. The Moroccan minister said digital technologies help create new job opportunities, improve energy efficiency, public health performance and education.
She also called for urgent collective action to avert the looming debt crisis in developing countries, urging the World Bank and IMF to deploy fast-disbursing instruments that would provide immediate assistance to debt-burdened countries.
Poverty levels are steadily rising, reversing previously established development gains in human capital and long-term unemployment, the minister added, warning that food insecurity and unemployment threaten social cohesion in an already fragile economy. worldwide.