IMF–World Bank shift

The International Monetary Fund and World Bank spent their April 13-18 meetings in Washington arguing that development finance now has to produce jobs, not just loans. (worldbank.org) World Bank events were organized around “creating jobs and driving growth through better policies,” with sessions on energy, water, agriculture, health, gender, and digital development. A wrap-up page said the meetings centered on “creating jobs at scale” and “unlocking private sector participation.” (worldbank.org) A Development Committee paper said the Bank’s jobs strategy rests on three levers: infrastructure investment, business-friendly regulation, and help for firms to grow. IISD reported ministers backed jobs in infrastructure, energy, agribusiness, health care, tourism, and manufacturing, alongside digital and financial tools. (devcommittee.org) (sdg.iisd.org) The shift comes as growth stays weak and shocks keep piling up. The World Bank said in January that global growth is projected at 2.6% in 2026, while IMF officials said this week the world economy is again being tested by war and other geopolitical disruptions. (worldbank.org) (imf.org) That pressure is pushing multilateral lenders toward resilience spending that can keep economies functioning during shocks. The World Bank’s meeting program highlighted energy security and water security, and a new “Water Forward” platform was launched as a jobs-and-growth initiative. (worldbank.org) (sdg.iisd.org) The multilateral development banks also used the week to tighten coordination. In a joint statement on April 17, their heads said they would work together more closely on private-sector finance, local-currency lending, job measurement, and critical minerals tied to energy security and digital supply chains. (worldbank.org) That matters for countries shut out of cheap borrowing. The same statement said members are facing higher energy costs, supply-chain disruptions, and tighter financial conditions, and the IMF committee chair said new debt should raise output without breaking debt sustainability. (worldbank.org) (imf.org) Aid is shrinking at the same time. OECD data released in April showed official development assistance from rich countries fell 23.1% in 2025 to $174.3 billion, the steepest annual drop on record, leaving less grant money available for poorer countries. (reuters.com) Borrowing countries used the meetings to press for a bigger say in how debt problems are handled. A new Borrowers’ Platform, backed by the United Nations Conference on Trade and Development, was launched in Washington to coordinate sovereign debt positions and counter a system many delegates said is dominated by creditors. (downtoearth.org.in) The IMF also used the week to lock in governance talks of its own. The International Monetary and Financial Committee adopted the Diriyah Guiding Principles on quota and governance reforms, which its chair called the first such reforms in more than 15 years. (imf.org) The result was a spring meeting less focused on rescue packages than on how to stretch scarcer public money into jobs, infrastructure, and shock protection. In Washington, the message from both institutions was that development lending now has to do all three at once. (worldbank.org) (sdg.iisd.org)