Speech

IMF Managing Director Kristalina Georgieva Remarks at the G20 Leaders Summit

November 15, 2022

As prepared for delivery

Congratulations to President Jokowi for bringing us together in this wonderful setting. 

We are discussing the issue of food and energy security at a particularly challenging time. 

Hopeful signs of recovery last year were replaced by an abrupt slowdown in the world economy because of COVID, the war in Ukraine, and climate disasters on all continents. This pushed prices up and led to a tightening of financial conditions. 

This is hard for everybody, but especially for emerging market and developing economies. They are experiencing, in many cases, high debt levels and depreciation of their currencies and, in this very difficult time, suffering even more from the high interest rates.

So what is the result of all this? We are seeing a reversal of all we had been fighting for: bringing poverty down, bringing hunger down. Now we have 345 million people that are suffering from a food crisis. 

And this is where the G20 can do so much to change the prospects for the world economy.

First, by allowing trade to do its job. Removing barriers, especially for food and fertilizers, can go a long way to counter the suffering of hundreds of millions of people. We must not allow protectionism to take root--and the world to drift into separate blocs.

We have calculated that a world divided would lose at least 1.5 percent of GDP annually. And the cost would be much higher--2 times higher or more--for open economies, those that depend on international cooperation. 

But we need not go that way. We can turn the tide and prevent sleepwalking into a world that is poorer and less secure.

Second, debt. This is challenging for everybody post-COVID. But for 25 percent of emerging market economies and 60 percent of low-income countries, it is crushing their ability to deal with food and energy insecurity. 

I am pleased that the G20's Common Framework for debt treatment is finally beginning to deliver—with Chad being the first country to complete an agreement with its official and private sector creditors. But we need to do much, much more.

Third, invest in resilience. Shocks will continue to hit us. But it is clear is that if we invest in climate-resilient agriculture and low-carbon development, we can have higher standards of living for people everywhere.

I want to take this opportunity to thank all those who have contributed SDRs so that the IMF can on-lend them to our member countries who need them most. We have US$40 billion today for the Resilience and Sustainability Trust, with four countries benefiting already. And we can do much more if you help us to do so.

The G20 has stepped up before during crisis situations. We look forward to the G20 stepping up again to help meet the difficult challenges facing the world now.

Thank you!  Terima kasih!