The Managing Director of the IMF, Kristalina Georgieva, says the IMF’s focus on a green global economic recovery would boost the creation of Jobs in climate resilience, reforestation, dealing with land degradation, improving infrastructure and renewable energy.
Georgieva disclosed this in an interview with Bloomberg BusinessWeek on Saturday.
Recall Nairametrics reported last month that the IMF said infrastructure is needed for a resilient economic growth in Africa post-covid-19, and in a scenario where large scale investments are needed, the focus needs to be smart, green and inclusive.
“This means moving towards other renewable energy sources, such as solar and wind power. This shift will help reduce carbon emissions, spread electrification, and create jobs. In Kenya, the government increased access to electricity from 40 to 70% of the population in large part through the use of small, off-grid, solar-powered energy plants,” the IMF said.
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Georgieva told BusinessWeek that during the economic downturn caused by the pandemic, the IMF poured money into many sectors of the global economy, and with the rising recovery, the IMF would prioritize a definitive end to the health crisis everywhere to enable emerging economies trade with advanced economies and also move towards a green economic model, which is a job-rich model and can boost GDPs of nations.
“When we put the economy into a standstill, the right policy response was to support companies across the board. Central banks, financial authorities, and institutions like mine have poured resources so that there is a floor under the world economy. And at that stage of the emergency response to a very unusual crisis, it would be wrong to try to differentiate. You don’t have the time. And you would do more harm than good if you differentiate,” she said.
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She continued, “We are now at the point where we are seeing the signs of recovery. That is moving us to a different phase where our advice from the fund is threefold: One, prioritize a definitive end to the health crisis everywhere. Even if advanced economies and some emerging-market economies revitalize themselves, if their trading partners are in trouble, that drags the world down. Two, start now thinking about how to gradually move support towards what you want to see in the future. Are jobs being protected? Are jobs being created? Now why is a green recovery very attractive? Because the green recovery can be a job-rich recovery.”
She added that the green recovery will created jobs in climate resilience, reforestation, dealing with land degradation, improving infrastructure to withstand climate shocks, building installations as a lot of renewable energy projects create jobs.
She said that a green recovery focus would create income equality opportunities for the future, through investing “in people, investing in education, and investing in internet accessibility.”
“One thing that I’m eager for the fund to play a role in is this combination between social safety nets and social safety ropes—provide incentives for people, especially young people, women, those that are most affected in this crisis. And it is great for the economy, it is also great for social cohesion,” she said.