The world needs to focus on how to build a greener and more inclusive world after the COVID-19 crisis, IMF Managing Director Kristalina Georgieva told world leaders at the 2020 Paris Peace Forum Thursday (November 12.)
She stressed the importance of scaling-up public investment in as many countries as possible while focusing on climate change and working on connecting all people to a digital future in a session held at the Elysée Palace in Paris.
Speaking alongside French President Emmanuel Macron she said, “We do need to put a strong public investment push to lift up growth at a time when we have ample idle capacity and interest rates are very low and we ought to do that in a coordinated manner. Deployed with an objective to address the other crises, the climate crisis, with the objective to promote digitalization so we can have a more equitable world”.
Georgieva also highlighted the need to think about building a greener world for future generations while dealing with debt early instead of waiting until debt has to be restructured and improving the tax system to be fit for the 21st century.
“We ought to think of what we leave to the future generations. It cannot be that we load them with unsustainable debt. It cannot be that we miss on greening their future. I am very keen to see action on three fronts on high quality public investment to help us with fiscal sustainability, generate income and growth on dealing with debt early, not wait the debt has to be restructured do it early and on improving the tax system so we can have a tax for the 21st century. I mean, how can it be that we have the digital economy benefiting greatly from this crisis? It is accelerating its income growth, and yet we cannot agree on a digital tax that is applied globally for fairness of how we share the benefits and the burden of development,” said Georgieva.
Georgieva urged world leaders to step up and invest together rather than in unsynchronized manner to build an impetus for growth and jobs all while helping the developing world go up.
“We must not forget the developing world. We must make sure that we invest liquidity and we boost investment there as well. Because if we don't, the risk of deepening inequality is high. The loss of what we have achieved in the fight against poverty can be very real. And I want to vouch for the IMF commitment to be part of this boost of investment capacity. And I would like to make sure that we make best use of the SDRs in that regard so we can help the developing world go up,” said Georgieva.