Rédaction Africa Links 24 with Burundi Times
Published on 2024-04-15 10:00:00
In a new World Bank report, it was found that one-half of the world’s 75 most vulnerable countries are experiencing a widening income gap with the wealthiest economies, despite their potential to advance global prosperity. This stark trend is unfolding for the first time in this century. These countries, eligible for grants and low-interest loans from the World Bank’s International Development Association (IDA), are home to 1.9 billion people – a quarter of humanity. The report, titled “The Great Reversal: Prospects, Risks, and Policies in International Development Association Countries,” delves into the opportunities and risks faced by these nations.
The IDA countries possess significant potential, such as abundant natural resources, a growing young population, and a high solar-energy generation capacity. However, over the period 2020-24, average per capita incomes in half of these countries have been growing more slowly than those in wealthy economies, widening the income disparity. One out of three IDA countries is now poorer than they were before the COVID-19 pandemic, with extreme poverty rates exceeding the global average. These countries are also grappling with hunger, malnutrition, and debt distress.
Despite these challenges, the World Bank emphasizes the importance of not turning away from IDA countries. The Chief Economist and Senior Vice President of the World Bank Group, Indermit Gill, highlights the success stories of countries like China, India, and South Korea, which were once IDA borrowers and have made significant progress in reducing poverty. With the right support, today’s IDA countries have the potential to follow a similar path toward prosperity.
Sub-Saharan Africa is home to more than half of all IDA countries, with others located in East Asia, Latin America, the Caribbean, and South Asia. These nations share common opportunities, such as a demographic dividend from a young workforce, ample natural resources, and high solar-energy potential. However, realizing this potential requires effective policy reforms, improved governance, and substantial financial assistance from the international community.
To capitalize on their demographic dividend, IDA countries must focus on education, health, and job creation for their young population. Harnessing their natural-resources wealth requires robust policy frameworks, enhanced economic management, and institutional development. Such efforts necessitate significant investments and structural reforms to boost productivity, reduce poverty, and address climate change adaptation needs.
The report underscores the importance of international cooperation in supporting IDA countries’ development efforts. It calls for stronger collaboration on global issues like climate change, debt restructuring, and trade facilitation to ensure these nations can overcome challenges and achieve sustainable growth. By implementing comprehensive policy measures and receiving adequate financial support, IDA countries can unleash their full potential for strong, inclusive, and sustainable development.
Read the original article on Burundi Times
