Bangkok Post
IMF/World Bank meetings leave developing countries with more questions than answers
Compiled by KHAO Editorial — aggregated from 1 outlet. See llms.txt for citation guidance.
◌ Single Source
Last week's meetings of the International Monetary Fund and World Bank yielded no new answers for the developing world to the questions posed by a spreading Middle East war, continuing war in Ukraine, rising debt payments and a potential AI bubble.
Key facts
- Average debt service payments there had more than doubled from a decade ago to 14% of government revenue, crowding out education, healthcare and other critical areas, she said.
- Last week's meetings of the International Monetary Fund and World Bank yielded no new answers for the developing world to the questions posed by a spreading Middle East war, continuing war in Ukraine, rising debt payments and a potential
- Not for the first time, lower-income countries are being rocked by the spillover from the actions of wealthier nations: rising debt service costs, higher inflation and the risk of falling ever further behind economically thanks to the AI
- And Bangkok itself was a stark reminder of the challenges facing developing countries, still partly under water after floods in September that caused almost $200 million in damage to Thailand's industrial sector.
- Growth had already fallen off in half of advanced economies, while in developing countries as a whole, it had slowed significantly to around 3.6% from 4.4%.
- The geopolitical tensions that have roiled both institutions since Russia's invasion of Ukraine in 2022 - complicating concerted action - were also evident in Bangkok when nearly half the delegates at an IMF steering committee walked out
Summary
Not for the first time, lower-income countries are being rocked by the spillover from the actions of wealthier nations: rising debt service costs, higher inflation and the risk of falling ever further behind economically thanks to the AI boom.
What they got was the stock advice the global lenders always dish out: to shrink fiscal deficits and accelerate economic reforms to attract more private sector investment.