Supply chains, inflation overshadow vaccine, debt woes
at IMF-World Bank meetings
Supply chain woes and growing inflation concerns pushed aside a widening gap in
COVID-19 vaccinations and mounting debt problems for developing countries as
the top concerns for global policymakers at International Monetary Fund and World
Bank annual meetings this week.
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Relatively little new progress was made on increasing vaccine supplies to developing
countries, although officials highlighted an increasing divergence between rich and
poor countries as a growing financial and economic risk.
The focus on the normalization pains that wealthier economies are experiencing and
a World Bank data-rigging scandal that had clouded the future of IMF Managing
Director Kristalina Georgieva proved a disappointment for anti-poverty groups.
"Given how the pandemic is becoming worse in most of the world's countries,
I'm concerned by the lack of action at the meetings on vaccine distribution,
debt relief and general pandemic response," said Eric LeCompte, executive director
of the Jubilee USA Network, a religious development group.
Communiques issued by G20 finance leaders and the IMF's steering committee
pledged to increase vaccine supplies, but did not identify specific new goals or
initiatives to expand financing or distribution. Instead, they gave greater prominence
to growing inflation pressures, calling on central banks to monitor closely whether
they are transitory or could unanchor inflation expectations.
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