On Friday, the head of the International Monetary Fund called on developed economies to provide more resources to low-income countries, warning of a “significant gap” in global growth that could threaten stability and spark social unrest in coming period.
Kristalina Georgieva, Managing Director of the International Monetary Fund, told reporters that more than half of developing countries are at greater risk of falling behind, raising concerns about stability and social unrest in those countries.
To avoid further issues, rich countries and international assistance organizations must be more involved, she said. He also called on the heavily indebted countries to begin debt restructuring as soon as possible and improve conditions for growth. “Last year, the focus was on the Great Isolation,” Georgieva told reporters during a video conference. This year we faced the risk of a “big difference”.
“We estimate that developing countries, which have converged in income levels for decades, will find themselves in a very difficult situation this time.”
She said that declining living standards in developing countries will make it difficult to achieve stability and security for the rest of the world.
“What are the risks? Social unrest. You can call it a lost decade. It could be a lost generation, ”she said.
Georgieva said advanced economies spent an average of about 24% of GDP on support measures during the pandemic, compared with 6% in emerging market countries and 2% in low-income countries.
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