The bank in its Global Economic Prospects report released Wednesday said developing countries should be able to introduce policies that will lead to creation of new jobs and businesses as the way forward.
In the report, the World Bank Group President, David Malpass, observed that the scope and speed with which the COVID-19 pandemic and economic shutdowns have devastated the poor around the world were unprecedented in modern times.
He said, “ Current estimates show that 60 million people could be pushed into extreme poverty in 2020. These estimates are likely to rise further, with the reopening of advanced economies the primary determinant.
“Policy choices made today – including greater debt transparency to invite new investment, faster advances in digital connectivity, and a major expansion of cash safety nets for the poor – will help limit the damage and build a stronger recovery. The financing and building of productive infrastructure are among the hardest-to-solve development challenges in the post-pandemic recovery.
“We need to see measures to speed litigation and the resolution of bankruptcies and reform the costly subsidies, monopolies and protected state-owned enterprises that have slowed development.”