The IMF needs more tools to fight modern, potentially more frequent global crises, Treasury Secretary Janet Yellen argued in a speech to the Atlantic Council this week. #IMFMeetings #G20
Health, climate and development challenges are creating worse economic shocks and leading to crises that are harder to solve. In the face of crisis, countries with more resources can act forcefully while poor countries get left behind.
Yellen’s speech comes days before she joins world leaders for #G20, World Bank and #IMFmeetings focused on developing countries struggling with debt, vaccine access and climate change. The Ukraine war brings a new shock to the global economy that leaders will discuss.
Recently, the IMF warned that 60% of poor countries face debt crisis or economic instability.

The Ukraine war adds to dramatic debt challenges in countries that already struggled with the pandemic. It's clear that we need stronger, more efficient tools to solve economic crises.
@SecYellen addressed international tax, trade, climate finance, health and pandemic preparedness reforms to modernize global financial institutions so they are fit to face global 21st century challenges.

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More from @Eric_LeCompte

Jan 25
The IMF released its World Economic Outlook Update forecasting a global economic downgrade and persisting challenges for the world economy.
As the pandemic continues the IMF again has downgraded its outlook on the global economy. The big story emerging from the IMF’s report is that variants like Omicron will continue to disrupt the global economy.
Both China and the United States face growing challenges and slower growth.

The report highlights that less stimulus and no Build Back Better legislation not only negatively impacts the US economy, it also hurts the world economy.
Read 8 tweets
Jan 14
On Friday, the International Monetary Fund's Board discusses the proposed "Resilience and Sustainability Trust." The new vehicle could aid developing countries with pandemic response and challenges faced from climate change with low-interest, long-term loans.
The IMF proposal is another way that wealthy countries can use their surplus pandemic response funds to support developing countries struggling with the COVID crisis, poverty and climate challenges.
The loans would come from a trust with $30 to $50 billion in assets from the IMF-created reserve funds of wealthy countries, also known as Special Drawing Rights (SDRs).
Read 10 tweets
Oct 13, 2021
The IMF World Economic Outlook report lowered economic growth projections for wealthy and poor countries. The IMF forecasts 5.9% global economic growth. #IMFMeetings
What's most striking is that we are looking at economies declining both in wealthy and poor countries. Because the pandemic is impacting so many developing economies, the United States and other wealthy economies face supply shortages.
The IMF flagship report notes prolonged economic challenges while more than 96% of populations in low-income countries remain unvaccinated.
Read 7 tweets
May 6, 2021
As developing countries struggle to access vaccines, the US announced support to eliminate trade barriers on vaccine access. In a statement Wednesday, the Biden Administration called for a waiver on COVID-19 vaccine intellectual property patents at the World Trade Organization.
Less than 2% of vaccines reached poor countries. Intellectual property rights prevent developing countries from making their own vaccines or accessing generic versions.

The IMF states that uneven vaccine access is a main cause of global economic uncertainty.
When the majority of countries are not accessing vaccines, the virus continues to mutate and could reinfect vaccinated people in wealthy countries. Continuing coronavirus waves, in any part of the world, mean economic shocks from exports and imports for every country.
Read 4 tweets
Apr 2, 2021
Big news on our global coronavirus response efforts.

Treasury notified Congress of its support for $650 billion in IMF global reserves, also known as Special Drawing Rights (SDRs), to assist developing countries struggling with the coronavirus crisis.
US law requires a ninety-day advance alert to Congress before the US votes for SDRs with the IMF board.

The notification paves the way for the US to vote in favor of these funds that developing countries need.
As early as summer, hundreds of billions of these emergency reserve funds can now be authorized for countries struggling with the pandemic.
Read 5 tweets
Mar 19, 2021
Breaking:

G7 finance ministers agreed to create emergency reserve funds for developing countries wrestling with coronavirus economic impacts. The funds are likened to a type of currency the International Monetary Fund creates, called Special Drawing Rights (SDRs).
This is the strongest public statement to date from G7 countries on the need for SDRs to confront the COVID economic crisis that is ravaging developing countries.
We are waiting on the IMF to formally assess the needs of poor countries to decide on the size of a SDR issuance. There is no doubt that developing countries have needs north of a trillion dollars.
Read 6 tweets

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