Egypt’s int’l cooperation min. urges continuous global cooperation to develop solution amid Ukraine crisis at G24 meeting

CAIRO - 23 April 2022: Egypt’s Minister of International Cooperation Rania El-Mashat affirmed the need for continuous international cooperation and coordination to develop solutions, and support from international financial institutions, the International Monetary Fund, and the World Bank Group in developing and emerging countries amid the Ukraine crisis.

This came as she participated in the Intergovernmental G24 Ministers and Governors Meeting, which is being held in conjunction with the WBG and IMF’s 2022 Spring Meetings.

Kristalina Georgieva, Managing Director of the IMF, and David Malpass, President of the WBG also participated in the meeting.

Mashat pointed to the risks surrounding the current global economic situation due to high inflation rates, supply chain challenges, and the Russian-Ukrainian crisis.

The minister explained that the aforementioned challenges cause a multiplier effect, especially as they coincide with the global plans to develop innovative solutions to overcome and mitigate the effects of climate changes.

She added that the current time requires effective international cooperation, and continued joint action to achieve sustainable development.

The meeting witnessed discussions on the international economic situation; the various challenges facing development efforts globally, especially developing and emerging countries; the repercussions of the COVID-19 pandemic; and climate challenges.

Mashat emphasized the importance of international cooperation and coordination to overcome climate challenges, and current shocks impacting development efforts.

She noted that international financial institutions should develop mechanisms that address economic and social challenges facing developing and emerging countries.

Mashat also said that the world needs effective private sector participation across all countries to implement development projects and support government efforts in the national agenda.

The minister noted the importance of the International Finance Corporation (IFC) in developing mechanisms to address economic and social challenges, and to empower countries, especially emerging and developing economies, whilst encouraging private sector participation.

The G24 meeting was chaired by the president of the Central Bank of Guatemala, Sergio Francisco Recinos Rivera, who stressed the importance of continued, and close, multilateral cooperation to maintain rule-based trade, food and energy security, financial stability, and increasing  financing for developing economies.

The G24 Communique called for urgent and stronger global responses to COVID-19 vaccine access and distribution, especially in low-income economies, explaining that countries should overcome supply barriers by facilitating timely cross border flows of vaccine and treatments, and sharing technologies to enhance their supply. The communique also calls for the WBG and other multilateral development banks to strengthen their balance sheets to the fullest extent possible, boosting lending capacity while preserving financial prudence and resilience.

The communique also called for an increase in funding provided by the multilateral development banks to support public investments needed to stimulate post-pandemic recovery, to address the main drivers of inequality, to confront the education crisis, and to prevent deep economic impacts.

The G24 also called on the WBG to develop a medium-term strategy for middle-income countries (MICs) considering their evolving landscape and circumstance, as many MICs face challenges in transforming their economies to improve their medium-term growth prospects and reduce high levels of poverty and inequality.