World Bank President David Malpass has warned G20 leaders to help poorer nations finance their debts. There is a growing risk of increased poverty and a repeat of the debt problems of the 1980’s.
While David Malpass acknowledged the efforts of the G20 countries to increase debt transparency and provide aid to the poorest countries, he said that effort still needed to be increased. “Reducing debt and making it more transparent will make productive investments possible, which is the key to achieving an earlier, stronger and more lasting economic recovery,” the World Bank chief told G20 leaders during a video conference on Saturday.
According to Malpasse, similar problems faced by the poorest countries in the 1980’s, when many were unable to repay their debts, must be avoided. This put them in even greater poverty. “We must not allow a wave of uncontrolled defaults on debt repayments in the 1980s,” Malpass said.
The President of the World Bank sees increasing risk associated with an increase in public debt in countries such as Chad, Angola, Ethiopia, and Zambia. It sees this as a similar development to that seen in some Latin American countries in the 1980’s. According to Malpasse, the richer part of the world should learn from history.