World Bank plans $170bn financing to ease ‘multiple crises’

theguardian.com:

The World Bank is preparing a $170bn package of financial help in response to the overlapping global crises of war, pandemic and inflation that are hitting the poorest countries particularly hard, its president has said.

David Malpass warned that Russia’s invasion of Ukraine had added to pressures caused by the Covid-19 crisis and soaring cost of living, and there was a need to provide assistance quickly.

Under proposals that will be discussed with the World Bank’s member governments at this week’s spring meeting of the Washington-based organisation, $50bn would be spent over the next three months, with a further $120bn of financing provided over the following year.

“I’m deeply concerned about developing countries,” Malpass told reporters. “They are facing sudden price increases for energy, fertiliser, and food, and the likelihood of interest rate increases. Each one hits them hard.”

The World Bank president said dearer food and energy, higher interest rates, the war in Ukraine and China’s coronavirus-related shutdowns meant the global economy was now expected to grow by 3.2% this year, compared with the 4.1% it had predicted in January.

The Bank’s sister organisation, the International Monetary Fund, will downgrade its growth forecasts when it publishes its half-yearly world economic outlook on Tuesday. In a chapter of the outlook published ahead of its official launch, the IMF expressed concern about a buildup of private debt, which it warned could knock a cumulative 0.9% off growth in advanced countries and 1.3% off growth in developing countries over the next three years.

“People are facing reversals in development for education, health, and gender equality,” Malpass said. “They’re facing reduced commercial activity and