The World Bank‘s chief economist said that the lack of growth is the biggest economic challenge facing developing economies. Carmen Reinhart, the World Bank‘s chief economist said that the economic growth was essential for poverty reduction. And also, for creating government revenues to use for fiscal space, social safety nets and the provision of public goods.
She said that they had a challenge in many emerging markets and developing countries even before the pandemic, growth started to slow down around 2015. She added that with growth comes jobs, with these comes recovery.
The World Bank is hoping to raise $100 billion in donations for the International Development Association fund for poorer countries. President David Malpass said that this is to address the tragic reversals in development caused by the pandemic. And this is adding that, the growth disparities between advanced economies and developing countries were worsening.
