During A High-Level Session at the Hamburg Sustainability Conference in Germany: Minister of Planning, Economic Development and International Cooperation Discusses Transition Towards “A Fair & Just International Financial Architecture” with the World Bank

Al-Mashat: Reforming international institutions, including the World Bank, is one of the main pillars of structuring the global financial system to support developing countries.

 

The need to structure the global financial system to become more flexible, sustainable, fair and responsive to the challenges of developing countries

 

During the Hamburg Sustainability Conference, H.E. Dr. Rania A. Al-Mashat, Minister of Planning, Economic Development and International Cooperation, participated in a panel discussion entitled “A Fair and Just  International Financial Architecture,” which discussed efforts to develop the international financial architecture and develop the governance of the World Bank Group, alongside Ms. Judith Tuluka, Prime Minister of the Republic of the Congo, Ms. Svenja Schulze, German Federal Minister for Economic Cooperation and Development, Ms. Anneliese Dodds, Minister of State for Development, British Ministry of Foreign Affairs and International Cooperation, and Mr. Thani Soilihi, French Minister of State for International Partnerships.

 

The Minister affirmed the importance of restructuring the global financial system to become more flexible, sustainable and just. This is in response to the challenges of developing countries and emerging economies given severe climate changes the world is facing, and ongoing challenges to development, emphasizing that rebuilding the financial system enhances financial stability, supports sustainable growth, and reduces disparity between countries.

 

She noted that reforming international financial institutions, such as the World Bank, and the reconsideration of developing countries representation is one of the main pillars for rebuilding the global financial system, and that requires concerted efforts from various relevant parties.

 

The Minister of Planning, Economic Development and International Cooperation commended the progress made under the World Bank Group’s evolution roadmap to achieve better results for member states, including facilitating procedures, streamlining project approval processes, delegating authority for rapid responses to the rapidly changing global environment, and organizing new innovative tools such as the Rapid Response Option to access emergency financing.

 

The Minister also highlighted the World Bank Group’s Guarantees Platform, the launch of the new Private Sector Investment Lab, the transformation into a knowledge bank, and enhanced collaboration between the World Bank Group, multilateral development banks, and other international financial institutions. These efforts will broadly strengthen partnerships with emerging markets and developing economies amid ongoing global crises.

 

Furthermore, the Minister stressed the importance of strengthening the voice and representation of emerging countries within the World Bank Group to reflect global realities and promote fair and equitable sustainable development. This is in addition to the importance of reconsidering the international financial architecture as crucial for all countries, as well as the importance of benefiting from the financing tools available to multilateral development banks to achieve the climate and development agendas.

 

H.E. also pointed out the importance of providing more resources to address external shocks that affect the ability of emerging and developing economies to achieve sustainable economic growth and development, as domestic resources are insufficient. Without concessional financing, this causes the international community to resort to selling bonds in capital markets, which raises costs, makes it difficult to continue borrowing, and marginalizes private investments.