World Bank Preparing $170 Billion Financial Help Package For Crisis Hit Countries Across The Globe

The World Bank, which provides financial assistance to its 189 member nations, is preparing a massive $170 billion package for various countries going through crises.

This huge package is in response to the overlapping global crises of war, pandemic and inflation that are hitting the poorest countries particularly hard, David Malpass, World Bank¡¯s President has said, as per a report in TheGuardian.

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"We are again living through a dangerous period of overlapping crises."

Watch @DavidMalpassWBG deliver his keynote speech: https://t.co/necjNnwRs7 #ResilientFuture pic.twitter.com/MC0r0TGtpk

¡ª World Bank (@WorldBank) April 18, 2022

Added Pressure From Russia-Ukraine War

He also warned that Russia¡¯s invasion of Ukraine had added to pressures caused by the Covid-19 crisis and soaring cost of living, and there was a need to provide assistance quickly.

The World Bank president added ¡°We¡¯re preparing for a continued crisis response given the multiple crises. Over the next few weeks, we¡¯ll be discussing with our board a new 15-month crisis response envelope of around $170 billion to cover April 2022 through June 2023. We expect to commit around $50 billion of this amount in the next 3 months.¡±

World Bank¡¯s President said ¡°I¡¯m deeply concerned about developing countries. They are facing sudden price increases for energy, fertilizer, and food, and the likelihood of interest rate increases. Each one hits them hard.¡±

Further, he stated that dearer food and energy, higher interest rates, the war in Ukraine and China¡¯s coronavirus-related shutdowns meant the global economy was now expected to grow by 3.2% this year, compared with the 4.1% it had predicted in January 2022.

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World Bank¡¯s sister organisation, the International Monetary Fund (IMF), will downgrade its growth forecasts when it publishes its half-yearly world economic outlook today.

Also, World Bank President said ¡°People are facing reversals in development for education, health, and gender equality. They¡¯re facing reduced commercial activity and trade. Also, the debt crises and currency depreciations have a burden that falls heavily on the poor.

Adding to it, he said ¡°Food crises are bad for everyone, but they are devastating for the poorest and most vulnerable. There are two reasons. First, the world¡¯s poorest countries tend to be food-importing countries. Second, that food accounts for at least half of total expenditures in household budgets in low-income countries, so it hits them hardest.¡±

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