World Bank Urges De-escalation of Israel-Gaza Conflict as Annual Meetings Begin
World Bank Calls for Peace Amidst Violence
The World Bank has called for a “rapid de-escalation” of the ongoing conflict between Israel and Gaza as the violence threatens to overshadow the start of the bank’s annual meetings with the International Monetary Fund in Morocco. The bank expressed concern over the devastating loss of life and destruction on both sides, but also voiced support for its work in Gaza and the West Bank.
Focus Shifts to Wider Conflict
The start of the annual meetings in Marrakech, which were expected to discuss increasing resources for the IMF and the World Bank, has instead been overshadowed by the possibility of a wider conflict. The high number of casualties has taken many officials and non-profit representatives by surprise, raising concerns about the impact on developing economies.
Potential Risks to Global Economy
The World Bank’s Chief Economist, Indermit Gill, has expressed concern that the conflict could have wider implications for the global economy. He highlighted the risks of trade fragmentation and supply chain delays, which could lead to increased prices and inflation. Gill emphasized the need to focus on low-income countries, as they are often the most affected by such economic shocks.
IMF Managing Director’s Visit
During the meetings, IMF Managing Director Kristalina Georgieva visited a school destroyed by an earthquake and praised Morocco for its swift response in reopening classrooms. She also emphasized the importance of increasing IMF quota resources to ensure the lender’s ability to respond to future economic shocks.
Impact on Development and Decision-Making
The conflict in Israel and Gaza has drawn parallels to previous conflicts, such as Russia’s invasion of Ukraine, which resulted in a slowdown of decision-making on development, debt, and taxes. The ongoing violence threatens to divert attention from important discussions on sovereign debt, economic growth, and the impact of the COVID-19 pandemic on development.
Looking Ahead
The World Bank and IMF meetings will continue throughout the week, with a focus on addressing economic challenges and supporting low-income countries. The hope remains for a swift de-escalation of the conflict and a return to stability and sustainable development in the region.
