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World Bank seeks $100 billion in donations to address ‘tragic reversals’ in development By Reuters

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© Reuters. FILEPHOTO: World Bank President David Malpass at “1+6” Roundtable in Beijing, China. November 21, 2019, by Florence Lo. REUTERS/Florence Lo

Andrea Shalal and David Lawder

WASHINGTON, (Reuters) – The World Bank plans to raise $100 billion for International Development Association funds for developing countries. This fund will help address the “tragic reversals of development” that have been caused by COVID-19.

While the multilateral bank for development projects global growth of 5.7%-2021 and 4.4%-2022 respectively, Malpass warned that inequality between developing and advanced countries was increasing. This had redirected efforts to end extreme poverty year-round, sometimes by decades.

Malpass noted that high-frequency data is pointing to a slowdown in global activity. This comes amid persistent supply chains bottlenecks, COVID-19 surges, and slowing momentum. The outlook for many of the developing countries is challenging, Malpass said. “The prospects are difficult because there has been a slowing in vaccination rates, inflation and limited support from policy. There have also been shortages of food, water, and electricity.

Malpass claimed that inequality was growing rapidly. Per capita income in advanced nations is expected to increase by nearly 5%, while it will grow only 0.5% in low and middle-income countries.

The president stated that advanced countries were reaching pre-pandemic levels, while output in the developing world would fall to nearly 4% next year.

He stated, “We are seeing what I call tragic reverses in development across many aspects.” “Progress towards reducing extreme poverty is being rebuffed by many years and some even by one decade.”

The World Bank seeks to collect $100 billion from developed economies in order to address increasing disparities. He said this, following a recommendation by African finance ministers earlier this year.

Malpass also suggested that efforts be made to alleviate the inexorable debt of many developing countries. She noted that the record debt of low-income countries rose to $860billion by 2020, a staggering increase of 12%.

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