Connect with us

World News

European Commission and IMF strengthen cooperation to support sustainable development

Published

on

European Commission President, Ursula von der Leyen, on behalf of the European Union, and International Monetary Fund’s Managing Director Kristalina Georgieva concluded a new Financial Framework Partnership Agreement that will boost their cooperation to tackle key challenges including climate change, and help countries achieve the Sustainable Development Goals. The European Union is the IMF’s main partner in capacity development since 2016.

To mark the signature of the new Agreement, President von der Leyen said: “The European Union and IMF are strong partners. We jointly want to find solutions to global issues, notably in Africa. Today’s new Agreement will allow us to focus better on climate change and digital challenges. I am particularly grateful to Kristalina Georgieva for her leadership. Together we are going to further strengthen our cooperation and partnership.”

IMF Managing Director, Kristalina Georgieva, added: “We appreciate the EU’s leadership on sustainable development for all. We have a history of working together in building strong economic institutions to improve economic performance and the livelihoods of people in our partner countries. This Agreement will deepen our collaboration and help us do more together, especially where it matters the most — in low-income countries and fragile states.”

The International Monetary Fund and the European Commission are longstanding partners, inside and outside the European Union. This new Agreement will strengthen, simplify and accelerate the conclusion of contractual arrangements for the numerous joint activities undertaken to support good economic governance, public finance management and domestic revenue mobilisation, institution building, as well as the wider 2030 Agenda for Sustainable Development.

Background

Supporting macroeconomic and public finance institutions and policies in the EU partner countries has long been a common objective of the EU and IMF. Financial Framework Partnership Agreements facilitate this cooperation and stabilize the contractual terms of a long-term cooperation between the Commission and its key partners. The new Agreement will replace the one from 2017 and will allow both the Commission and the IMF to take full advantage of the novelties introduced in the 2018 EU Financial Regulation, such as increased simplification and bigger focus on results.

The EU–IMF partnership has intensified over the years with the organizations supporting each other’s work, through regular consultations at staff and management level, and complementarities of EU budget support and IMF programmes, as well as through developing capacity-building instruments. These include EU support for the Tax Administration Diagnostic Assessment Tool, the PIMA tool on public investment management, the management of natural wealth resources, and the strengthening of domestic revenue mobilisation.

The EU is now the largest external contributor to IMF capacity development, including the IMF’s network of ten regional technical assistance centres, particularly in Africa, and support to almost all of the IMF’s thematic and country trust funds, as well as to a range of bilateral projects.

Continue Reading
Comments

World News

WEF calls for new partnerships to generate private capital for fragile communities

Published

on

The World Economic Forum released today a paper that calls for new collaboration between humanitarian and development organizations, businesses, investors and entrepreneurs to make a difference to the lives of the nearly 1 billion people living in fragile and conflict-affected settings worldwide.
 
Cultivating Investment Opportunities in Fragile Contexts: Catalysing Market-Driven Solutions to Strengthen Community and Economy Resilience outlines a practical approach to how organizations can build the capacity and strategic thinking needed to develop a sustainable business case for solutions that have the potential to unlock new sources of finance to reach impact at scale.
 
“It takes more than a single intervention to unleash transformational change in complex ecosystems. To truly leverage the potential for positive and sustainable social impact while meeting investor demand for returns, new ways of collaboration across sectors are needed,” said Børge Brende, President of the World Economic Forum.
 
The IKEA foundation is a partner of this initiative. Over the next three years the partnership will develop innovative business models and investments that strengthen local economies and increase the self-reliance and resilience of the most vulnerable communities and economies.
 
“We support the World Economic Forum because of our mutual goal to improve the lives of people who are affected by crises, including those who are forced to flee,” said IKEA Foundation CEO Per Heggenes. “We believe that together we can help attract the investment needed to strengthen fragile communities and empower the people who live in them to rebuild their lives and create a better future for children and their families.”
 
The joint discussion paper is an evolution of the work initiated by the Forum’s Humanitarian and Resilience Investing (HRI) Initiative, which was launched at the World Economic Forum Annual Meeting 2019 in Davos-Klosters, Switzerland.
 
As a first step, the initiative will operationalize the Organizational Readiness Playbook launched in 2020, and bring together a cohort of pioneers from humanitarian and development organizations, donor governments and development finance institutions to increase organizational capacity for HRI.
 
The initiative will also support investment opportunities targeting HRI to meet investor criteria and attract the commercial capital needed to reach scale. It will further facilitate the development of new tools, research and resources, including the standards, common terminology and analytic frameworks that allow for systems-level impact measurement.

Continue Reading

World News

Von Der Leyen Condemns ‘Russia’s Blackmail’ on Food and Fuel

Published

on

Ursula von der Leyen, President of the European Commission, denounced Russian aggression and its use of “hunger and grain to wield power”, in a special address at the World Economic Forum Annual Meeting 2022.

“Global cooperation is the antidote to Russia’s blackmail,” she said.

Her message focused on strategic priorities for Europe since the invasion. Boosting military spending is one such initiative. “We have to invest much more in solid European defence capabilities,” von der Leyen said. While NATO remains the world’s strongest military alliance, European spending on defence has not kept pace with recent increases by the United States, Russia or China, particularly since the 2008 financial crisis.

Increasing that spending – with a particular focus on the interoperability of nations’ defence investments – can help strengthen the region’s ability to defend itself from such threats.

She pointed to other key initiatives such as promoting green power, ensuring the resilience of supply chains and promoting food security. In terms of energy, she said, the crisis in Ukraine has galvanized Europe’s embrace of renewable sources and diversification of its energy supply.

RePowerEU, a €300 euro plan launched last week by the European Commission, aims to accelerate the green transition by nearly doubling Europe’s energy consumption from renewable sources by 2030.

Ultimately, “hydrogen is the new frontier of Europe’s energy network”, von der Leyen said.

Europe must respond to additional knock-on effects of the war, such as rising food prices, as Russia has confiscated Ukrainian grain and blockaded other food exports. Europe is helping by providing revenue, increasing its food production and supporting other regions such as Africa in becoming less dependent on food exports.

Technology can be a part of the solution to food insecurity to boost “climate-smart” agriculture. Vertical farming and precision irrigation are among the initiatives that can improve access to food in climate-responsible ways.

In a conversation with Klaus Schwab, Executive Chairman and Founder, World Economic Forum, von der Leyen noted that she could see a long-term future in which Russia found a path back to alignment with Europe.

“This brutal invasion is standing up against the leadership in Russia,” she said. The people of Russia, who ultimately will control the nation’s future, are the ones who will decide the nation’s way forward. If, in the future, the nation embraces “rule of law and respect for the international, rules-based order, it’s a clear yes”, she said.

Continue Reading

World News

Stoltenberg: Freedom Must Come Before Trade

Published

on

nato russia

NATO Secretary-General Jens Stoltenberg, in a keynote speech to the World Economic Forum Annual Meeting 2022, told participants that the brutal war of aggression on Ukraine has shattered peace in Europe, triggering an historic enlargement of NATO.

“NATO has two fundamental tasks in response to Russia’s aggression: providing support to Ukraine and preventing the war from escalating,” he said.

“Since Russia’s invasion, NATO has significantly stepped up support – with billions of dollars of weapons and other assistance to help Ukraine uphold its right to self-defence as enshrined in the UN Charter.”

“We may have been shocked by Russia’s brutal invasion. But we should not be surprised,” he said.

Stoltenberg pointed out that the invasion was one of the “best predicted” acts of military aggression ever, adding that NATO shared intelligence and made it public for months “to warn about Putin’s plans”.

“Russia’s attack on Ukraine is part of a pattern over many years – the use of military force to achieve its political aims: the destruction of Grozny; the invasion of Georgia; the annexation of Crimea; and the bombing of Aleppo.”

“In response we will defend every inch of NATO territory,” he said.

He laid out a series of significant actions taken by NATO – increased defence spending, deployment of combat battlegroups in the eastern part of the alliance and placing 100,000 troops on high alert. And, for the first time ever, a US Amphibious Ready Group has been placed under NATO command.

“NATO’s response is not to provoke conflict but to prevent conflict and preserve peace,” he said.

Referring to Finland and Sweden’s historic decision to apply for NATO, he said: “President Putin wanted less NATO on his borders and launched his war – and now he is getting more NATO on his borders.”

“Today, close to 600 million Europeans live in a NATO country, with the alliance protecting about 93% of the EU population,” he added.

In a question-and-answer with Børge Brende, President, World Economic Forum, after his speech, Stoltenberg pointed out a key lesson of the war in Ukraine that economic relations with authoritarian regimes can create vulnerabilities.

“Freedom is more important than free trade,” he said, and “the protection of our values is more important than profit.”

He said the World Economic Forum has brought the global community together for half a century to address some of the world’s most difficult problems. “Today we need this spirit of Davos more than ever.”

Continue Reading

Publications

Latest

South Asia21 mins ago

“Haqeeqi Azaadi” or “Political Invasion”?

You call it a “Long March” or an “Azaadi March” or a “Haqeeqi Azaadi March” and lastly according to some...

Defense2 hours ago

What makes India’s participation in the Quad intrinsically unique?

In this essay, I try to shed light on the geopolitical imperatives that make India’s involvement in the Quad intrinsically...

Health & Wellness4 hours ago

Blind cave creatures light the way with DNA

In watery underground caverns, there are creatures that live in an eternal midnight. Over the course of generations, these animals...

World News6 hours ago

WEF calls for new partnerships to generate private capital for fragile communities

The World Economic Forum released today a paper that calls for new collaboration between humanitarian and development organizations, businesses, investors...

Tech News8 hours ago

Growing Intra-Africa Trade through Digital Transformation of Customs and Borders

The digital transformation of customs and borders in Africa could improve efficiencies in processes, such as administration at customs and...

Environment11 hours ago

More Industrial Hubs to Accelerate Their Net-Zero Transition

Four leading industrial clusters in the Netherlands, Belgium and the US today announced that they are working together with the...

Environment12 hours ago

Global Food Crisis Must Be Solved Alongside Climate Crisis

Instability in Ukraine is threatening to intensify an already precarious global food security outlook. Increasing prices of fertilizers and inaccessibility...

Trending