Rolling coverage of the first day of the World Economic Forum in Davos
The fortunes of food and energy billionaires have grown by $453bn over the past two years owing to soaring energy and commodity prices during the pandemic and Vladimir Putin’s war in Ukraine, a report by Oxfam has revealed.
As the world’s business and political elite meet for the World Economic Forum in Davos, Switzerland, the development charity said spiralling global food prices had helped create “62 new food billionaires” in just 24 months.
We can start now by lowering trade barriers to alleviate shortages and lower the prices of food and other products.
Not only countries but also companies need to diversify imports—to secure supply chains and preserve the tremendous benefits to business of global integration. While geostrategic considerations will drive some sourcing decisions, this need not lead to disintegration. Business leaders have an important role to play in this regard.
With roughly 60 percent of low-income countries with significant debt vulnerabilities, some will need debt restructuring. Without decisive cooperation to ease their burdens, both they and their creditors will be worse off. But a return to debt sustainability will draw new investment and spur inclusive growth.
That is why the Group of Twenty’s Common Framework for Debt Treatment must be improved without delay. This means putting in place clear procedures and timelines for debtors and creditors—and making the framework available to other highly-indebted vulnerable countries.
Inefficient payment systems are another barrier to inclusive growth. Take remittances: the average cost of an international transfer is 6.3 percent. This means some $45 billion per year are diverted into the hands of intermediaries—and away from millions of lower-income households.
A possible solution? Countries could work together to develop a global public digital platform—a new piece of payment infrastructure with clear rules—so that everyone can send money at minimal cost and maximum speed and safety. It could also connect various forms of money, including central bank digital currencies.
During the COP26 climate conference, 130 countries, representing over 80 percent of global emissions, committed to achieve net-zero carbon by around mid-century.
But we urgently need to close the gap between ambition and policy. To accelerate the green transition, the IMF has argued for a comprehensive approach that combines carbon pricing and investment in renewables, and compensation for those adversely affected.
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