Kristalina Georgieva
GOVERNMENTS, THE world over, have been asked to put in place public investments and incentives for private investments that support low-carbon and climate-resilient growth.
Managing Director of International Monetary Fund (IMF), Kristalina Georgieva, who made this known on Wednesday in her remarks to the World Economic Forum, said many of such investments could lead to job-rich recovery through planting mangroves, land restoration, reforestation or insulating buildings and also key sectors for reducing carbon intensity where both the public and private sector could invest.
“I am particularly keen to take advantage of low oil prices we see today, to eliminate harmful subsidies and introduce a carbon price that would work as an incentive for future investments,” she stated.
Commenting on smarter growth, she noted, “We know the digital economy is the big winner of this crisis. But we must not allow the digital divide to widen so that some countries and communities fall further behind. This would bring more pain than gain in future. So, it is critical that institutions like the IMF support investments that will shrink the digital divide—working in partnership with the World Bank and others.
“We also need to think carefully about how to make sure the jump in growth and profitability in the digital sector leads to benefits that are shared across our societies. And that takes me to mythirdpoint— fairer growth. We know that—if left to its own devices—this pandemic is going to deepen inequality. That has happened in prior pandemics.”
“We can avoid this if we concentrate on investing in people—in the social fabric of our societies, in access to opportunities, in education for all, and in the expansion of social programs so we take care of the most vulnerable people. Then we can have a world that is better for everyone.
“I want to conclude with an example from the past. William Beveridge, in the midst of the Second World War, put forward his famous report in 1942 in which he projected how UK should address what he called the ‘five giant evils.’ That famous ‘Beveridge Report’ report led to a better country after the war—including the creation of the National Health Service that is saving so many lives today in the UK,” the IMF boss added.
“So, now is the moment to step up—and use all the strength we have—to turn the page. In the case of the IMF, we have a one trillion-dollar financial capacity and tremendous engagement on the policy side. This is the moment to decide that history will look back on this as the Great Reset, not the Great Reversal. And I want to say—loud and clear—the best memorial we can build to those who have lost their lives in the pandemic is to build a world that is greener, smarter and fairer.”