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Governor urges World Bank and IMF to draft plan which meets the needs of countries

Governor of Maldives Monetary Authority (MMA) Ahmed Munawwar has underscored the crucial importance of the World Bank Group (WBG) and the International Monetary Fund (IMF) drafting plans after considering the needs and capabilities of countries. The statement was made by the governor as he chaired the 2024 Annual Meetings of the IMF and the WBG. This marks the first time the Maldives chaired the meeting as the Chair of the Board of Governors of the World Bank and IMF. The trip undertaken by Munawwar to participate in the meeting held in Washington DC in the United States, is sponsored by the IMF.

In his address, Governor Munawwar shed light on the critical importance of all countries working collectively, particularly on economic development. He echoed US Treasury Secretary John W. Snyder’s remarks from the first annual meeting, highlighting that the World Bank and IMF are not merely financial supporters. This is primarily because the economic development of the countries relies on the success of these two institutions. He further stressed that the World Bank and IMF must not fail the governments of the countries, not its residents and must make plans after considering the situation and capabilities of each member country.

Furthermore, Munawwar highlighted the challenges facing economic development, putting a particular emphasis on three key points: climate change, loan management and systematic reforms. Noting that small island nations like the Maldives are significantly impacted by climate change, he discussed efforts to harness renewable energy. He stated that using renewable energy would not only alleviate some adverse effects of climate change but also yield financial benefits.

During the meeting, Munawwar acknowledged the IMF's Resilient and Sustainability Fund for its contributions to climate change and energy initiatives. However, he stressed the importance of implementing further measures to assist countries transitioning to renewable energy. He also highlighted the urgent need for developing new strategies to attract private investment in this sector.

Recognising that the least developed and developing countries face substantial debt burdens, Munawwar underscored the importance of considering their situations. He urged the World Bank, IMF, and multilateral banks to take proactive steps to assist nations grappling with high debt levels and to devise plans that alleviate the financial strain on countries investing in climate adaptation. Additionally, he called for both institutions to explore initiatives that could enhance job opportunities, promote equality, and ensure economic diversification.