Coordinated action is needed to prevent the spread of fragile states – by IMF chief Reuters

© Reuters File Photo: International Monetary Fund (IMF) Managing Director Kristalina Georgieva comments at an inaugural press conference during the annual fall meeting of the IMF and the World Bank’s 201 finance ministers and bank governors in October, United States.

WASHINGTON (Reuters) – A concerted effort is needed to arrest and reverse the growing number of fragile states, said Kristalina Georgieva, managing director of the International Monetary Fund, on Monday.

Georgieva told a panel at a collapse meeting between the IMF and the World Bank that the Kovid-1 pandemic epidemic has exacerbated problems in states that are already vulnerable to problems such as extreme poverty, drought, rising food prices and, in some cases, war.

“We must have the humility to acknowledge that the fragile state of the universe is expanding, and we will not arrest or reverse that trend unless we promise to unite all our forces,” he said.

Georgieva said the developed economies and economic trends for all developing countries were isolated, but the gap was much wider for fragile and conflict-ridden states, which saw real GDP per capita fall by 6.6% in 2020.

These countries saw greater growth in public debt and were expected to face more inflationary pressures, but had a difficult time raising revenue.

The support of the international community was important to help fragile states and counteract growing diversity, he said, adding that the IMF had provided 7. 7.5 billion in assistance to support fragile states.

He said the IMF’s recent ৫ 50 billion new special drawing rights included 16 116.2 billion in funding for these countries.

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