The International Monetary Fund logo is seen outside the headquarters building during the IMF and World Bank Spring Meeting in Washington, U.S., April 20, 2018. REUTERS/Yuri Gripas

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WASHINGTON, April 21 (Reuters) – The global development finance system needs urgent reform and far more private capital to tackle the multiple, overlapping crises that are pushing 250 million people back into extreme poverty, officials said. said large public and private groups in a statement.

The statement, signed by Woochong Um, Managing Director of the Asian Development Bank, former British Prime Minister Gordon Brown, Dr. Rajiv Shah, Chairman of the Rockefeller Foundation, and Andrew Steer, Chairman of the Bezos Earth Fund, calls for major changes. to help developing countries deal with massive debt burdens, climate change, COVID-19 and myriad other crises.

“Standard models don’t work,” they said in a joint statement released after convening 60 senior government officials and development finance experts in Washington for a three-hour dialogue on the sidelines of the International Monetary Fund’s Spring Meetings and of the World Bank.

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“We call on governments and the private sector to mobilize development finance at the pace and scale needed to respond to these deepening crises. This is the only way to put the world on track to achieve the Sustainable Development Goals (SDGs) and the Paris Agreement Climate Agreement,” they said.

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The war in Ukraine, COVID-19, cascading debt burdens, accelerating food and fuel crises and extreme weather events are reversing more than 80 years of growing prosperity and global convergence, the statement said.

Russia’s war in Ukraine has also stoked global food insecurity by driving up the prices of wheat, corn, soybeans, fertilizers and sunflower oil, they said.

The needs were huge, but public funding was “increasingly scarce and inequitable”, and private funding was increasingly risk averse, they said.

To help, the advanced economies of the Group of Seven and the entire Group of 20 major economies should deliver on their promise to support South Africa’s energy transition and push Indonesia to reach an agreement on a partnership for energetic transition.

Major economies should also use guarantees and other innovative instruments, such as the proposed International Financial Facility (IFF), and channel their IMF Special Drawing Rights (SDR) reserves to developing countries, they said. .

Increasing funding from multilateral development banks and creating facilities to attract more private capital would enable developing countries to take climate action, fight the pandemic and manage the worsening food, energy and debt crises .

“If we don’t solve these problems, we are going to have a lot more instability, and a lot less confidence in the system of public finance and development, to the point that it will no longer be credible,” said Eileen O’Connor , a strategic adviser to Shah at the Rockefeller Foundation.

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Reporting by Andrea Shalal; edited by Diane Craft

Our standards: The Thomson Reuters Trust Principles.

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