COVID-19: WB bets for policies that induce growth
World Bank Group President David Malpass urged nations to adopt a dual approach to tackle economic hardships created by Covid-19 pandemic. He advised them to embrace comprehensive policies to boost long-term growth along with short term measures to address health emergencies and secure core public services in the wake of the coronavirus crisis.
As the World Bank released analytical chapters from its flagship Global Economic Prospects report, Malpass stated, “Current estimates show that 60 million people could be pushed into extreme poverty in 2020. These estimates are likely to rise further, with the reopening of advanced economies the primary determinant.” The bank noted that the coronavirus pandemic and the economic shutdowns are dealing a severe blow to the global economy.
Some of the policies suggested to do some damage control include greater debt transparency to invite new investment, faster advances in digital connectivity, and a major expansion of cash safety nets for the poor. He also spoke about the need to take measures to speed litigation and the resolution of bankruptcies and reform the costly subsidies, monopolies and protected state-owned enterprises that have slowed development.