Speakers for Bretton Woods Institutions Cite Key Role in Ensuring Financial Stability, Fostering Development, Amid Concern over Private-Sector-First Approach, as Forum Ends
‘Our Numbers Tell a Story of Progress’, World Bank Group Director Says, Pointing to Fivefold Increase in Annual Funding
Bretton Woods institutions are playing a crucial role in ensuring financial stability and promoting development, their representatives said today, even as some speakers expressed concern about their private-sector-first approach.
The Economic and Social Council’s Financing for Development Follow-up, held on 28 and 29 April, held its second day of discussions today, with a series of dialogues focusing on how international financial institutions can contribute to development finance.
Axel van Trotsenburg, Senior Managing Director of the World Bank Group, speaking via video link, stressed the importance of building “a positive and factual narrative around development finance”. Several countries have made great progress in the last decades through domestic resource mobilization and international support, he said, highlighting East Asian countries as an example.
“Our numbers tell a story of progress,” he reiterated, adding that, since 2002, his Group has increased its annual financing fivefold — from $24 billion to almost $120 billion in 2024. “The current narrative may send the negative signal that development finance in the past was ineffective, which, in turn, may discourage future efforts,” he added.
Stressing that it is key to reduce fragmentation, “especially with tighter budgets”, he said the Group is focused on helping countries to broaden their tax bases and modernize their tax administrations, including through digital solutions.
Further, World Bank financing provides crucial support to low-income countries without exacerbating debt vulnerabilities. For instance, through the International Development Association, it provides highly concessional loans. He also highlighted a debt-for-education swap initiative in Côte d’Ivoire. However, “the recent case of undisclosed debt in an African country has shaken investor confidence”, he cautioned, adding that it is crucial to restore trust.
Global Growth Projected to Drop to 2.8 Per Cent in 2025, 3 Per Cent in 2026
Though “we're not forecasting a global recession”, Bo Li, Deputy Managing Director of the International Monetary Fund (IMF), said global growth is projected to drop to 2.8 per cent in 2025 and 3 per cent in 2026, according to the Fund’s latest “World Economic Outlook”.
He advised countries to undertake policies focused on ensuring macroeconomic and financial stability, while reducing internal and external imbalances. Many countries could boost the money available to them through tax revenue reforms and capacity-building. It is also vital to cut non-priority spending and redirect resources towards health, education and other public investment.
For its part, IMF is mobilizing funding and adapting its lending, he said. It has provided over $350 billion to nearly 100 countries since 2020, including unprecedented levels of concessional support. Its recent reform of charges and surcharges has significantly lowered members’ borrowing costs. The Fund will continue to provide advice on financial sector policies, as well as risks from changes in the financial system. He also highlighted a domestic resource mobilization platform called Global Public Finance Partnership.
Amid the great uncertainty in the world economy, “the IMF will maintain its role as a trusted economic and financial adviser, a reliable lender of last resort during crisis and a champion of strong policy frameworks”, he said.
Ambition Must Match Action: Trade, Investment, Technology and Productive Capacity Must Be Integrated into Development Financing Agenda
“Are we being bold enough?”, asked Paul Bekkers, President of the Trade and Development Board, United Nations Conference on Trade and Development (UNCTAD), also speaking by video link. At a time when old growth models are showing signs of strain, he said, the upcoming fourth International Conference on Financing for Development, to be held in Seville from 30 June to 3 July, should ensure that ambition is matched by action.
Trade — “a well-established engine of development” — is under pressure and it is the most vulnerable countries that feel the tremors first, he said. If trade is to remain a driver of opportunity and not a source of risk, it means integrating trade, investment, technology and productive capacity into the very heart of the development financing agenda. Further, domestic and international environments are not separate tracks — “they're the same road”, he said. When developing countries spend $1.4 trillion servicing debt, that's $1.4 trillion not going to schools, hospitals, climate adaptation or digital infrastructure.
Digitalization and Artificial Intelligence ‘Potentially Transformative Forces’
The Forum also heard from Ryadh Alkhareif, Deputy Chair of the International Monetary and Financial Committee, who highlighted the declaration adopted at his group’s spring meeting, which took place last week in Saudi Arabia. Despite the weak economic growth, and the heavy toll of wars and conflicts, there is room for harnessing “potentially transformative forces”, such as digitalization and artificial intelligence, he said. Stressing the importance of sound macroeconomic policies and well-calibrated structural reforms to boost job creation, he said his group will deepen its pivot towards “growth-friendly fiscal consolidation”.
Elisabeth Svantesson, Chair of the Development Committee, a joint ministerial committee of the Boards of Governors of the World Bank and IMF, said that, at its recent meeting, the Governors noted “how the Bank helps countries through financing, knowledge, partnerships and by bringing people together”. Given that over 1 billion young people will enter the workforce in the next 10 years, the Governors strongly supported the Bank’s focus on job creation — especially for women and young people. They also stressed the importance of climate action and asked the Bank to keep helping countries prepare for and respond to natural disasters, she reported.
Saqer Abdullah Almoqbel, Chair of the General Council, World Trade Organization (WTO), speaking by video, noted that this year marks the thirtieth anniversary of the organization. Over three decades, its efforts have led to 1.5 billion people emerging from extreme poverty. Committing to facilitating open and constructive dialogue among its members, he noted the upcoming fourteenth ministerial conference, which will take place in Cameroon in 2026. Stressing the importance of collaboration with the Bretton Woods institutions, he said this brings “complementary strength to our shared mission”.
IMF’s Contribution to Financing for Development Agenda: Its Role in Strengthening Global Macroeconomic and Financial Stability
The Forum then held a discussion on IMF’s contribution to the financing for development agenda. Moderated by Veda Poon, IMF Liaison Committee Chair, the discussants included Krzysztof Szczerski (Poland), Vice-President of the Economic and Social Council; and Mohamed al Rashed, Executive Director for Saudi Arabia, IMF. Speakers highlighted its role in strengthening global macroeconomic and financial stability, using examples of its past and current work in various countries.
The World Bank Group’s Contribution to Financing for Development Agenda: Reducing Poverty and Promoting Sustainable Development
It also held a discussion on the World Bank Group’s contributions to financing for development agenda, moderated by Matteo Bugamelli, Dean of the Board of Executive Directors of the World Bank Group. Discussants included Lok Bahadur Thapa (Nepal), Vice-President of the Economic and Social Council; and Zarau Wendeline Kibwe, Executive Director of Africa Group 1 of the World Bank Group. Speakers noted the Groups’ expanded lending headroom, and discussed sectoral and structural reforms it should focus on when providing advice and financial support to client countries.
Calls for Reforming International Financial Architecture
In the interactive dialogue that followed, several speakers expressed concerns about the uncertain global economic environment while others called for reform of the international financial architecture.
China’s delegate said the reckless tariffs imposed by the United States violate World Trade Organization (WTO) rules — the international community must unite against such “economic bullying”, he said. Palau’s delegate, speaking for the Alliance of Small Island States, highlighted the need to use the multidimensional vulnerability index when allocating concessional finance.
The representative of Christian Aid, also speaking on behalf of the civil society Financing for Development mechanism, recalled that, during the negotiations of the Summit of the Future, States requested the IMF to review gaps in the global debt architecture. But, the Fund decided it will not discuss proposals such as a sovereign debt workout mechanism, preferring instead to focus on the role that private creditors play in today’s debt landscape. “Why? Because it already knows that some of its largest members don’t like these types of proposals, so it’s decided that’s not worth discussing. What does that tell us about the role the IMF plays as a trusted, expert institution that even-handedly works for all its members?”, she asked.
Mali’s delegate said international financial institutions are in dire need of reform — they must align their programmes with national priorities and ensure transparency in their procedures. He highlighted the need to address the exponentially rising debt of developing countries by reducing interest rates and revising timelines for repayment.
Cuba’s delegate called for radical reform of the current financial architecture to enable true investment in developing countries. The economic polies led by Bretton Woods institutions undermine the economic sovereignty of developing countries, she said, adding that, as a “lender of last resort”, IMF must take more responsibility.
Closing Remarks by Economic and Social Council President, United Nations Deputy Secretary-General
At the outset of the meeting, Robert Rae (Canada), President of the Economic and Social Council, stressed the importance of improving the relationship between international financial institutions such as IMF and the World Bank and the United Nations — “all of us as members of the wider international family”. While there may be competing opinions within that family, “we have to establish a willingness to really engage”, understand what different parts of the system are doing and discuss expectations and challenges, he said. In his closing remarks, he said that conversations such as the ones today are essential to address the trust gap. “Mind these gaps,” he said.
Amina Mohammed, United Nations Deputy Secretary-General, also delivered closing remarks. The Forum also approved its draft report (document E/FFDF/2025/L.1).