TheHere is a transcript of an interview. David MalpassPresident of the World Bank GroupThat aired Sunday, November14, 2021 on “FaceThe Nation.”
MARGARET BRENNAN: PoorCountries continue to await COVID shots. TheHead of the W.H.O. He said that it was scandalous that six times as many booster shots are given worldwide than the first doses in low-income countries. AnThe organization is involved in financing global vaccines and climate changes commitments for developing nations. World Bank, and its president David MalpassThis morning, God is with us. GoodGood morning to all.
DAVID MALPASS, PRESIDENT WORLD BANK GROUPE: Good morning, MARGARET.
MARGARET BRENNAN: WellYou will never run out of problems. VaccineCrisis, inflation is at its highest point in 30 years. United StatesPotentially, a debt crisis in ChinaPotential energy issues Europe. HowIs this a global recovery that is uncertain?
MALPASS: YouIt’s very difficult, you know. AndIt’s really a unequal situation, especially for the bottom-income people. They’re not getting vaccines. TheThe debt burden is very high. AndThis is a challenge that everyone must face. TheirThe growth rates in emerging economies are much lower than those in advanced countries, and that’s exactly what we want. ToGet development, we need them growing faster, creating more jobs. ButThe unemployment rates are extremely high.
MARGARET BRENNAN: SoWhat is the first step to solving this problem?
MALPASS: TheWe can start with vaccines. ButI believe that there should be a variety of policies for each country. TheyCan do more to assist. AndIn advanced economies, however, there aren’t resources that can be used worldwide. They’reMost people remain in an unequal situation in advanced economies. ThePeople at the top do the best right currently.
MARGARET BRENNAN: WellThe top two largest economies are the United States ChinaThey also have their problems. ChinaHave you heard of this debt crisis? TreasurySecretary says they are closely monitoring. HowAre you worried?
MALPASS: WeWork closely with China. YouIt is distinct from the market-based systems around the globe. It’sA Communist Party system. AndThere are also frictions. ThereThere are many challenges, but there are also opportunities. ButFrom the point of view of the World BankWe’re collaborating with them on marineplastics, reducing the amount of- from the river system. AlsoWe’re working with them on a greenhouse gas emissions standpoint as well. So, ChinaEngaged in the World It’sMaking vaccines for its own people. AndSo, we can also look at this. We need to be aware that there are some frictions in debt transparency. As they enter into contracts in developing countries, there is often an exclusion clause which makes it very difficult for people know if they are getting a fair deal.
MARGARET BRENNAN: ChinaIs this what you are saying?
MALPASS: YouThat was the conclusion. AndWe are working closely with them to improve transparency in contracts. This will benefit both them and the developing world.
MARGARET BRENNAN: The World BankIt has been pointed out that low-income countries are afflicted by COVID and have a high level of debt. AreYou said that we are now at the point where it is possible to see what we experienced a few years back with the GreekDebt crisis: A situation where a country is in dire need of financial assistance?
MALPASS: Yes. AndWe did a report about the pandemic a year and half ago, before the four waves of debt. SoThere was the Latin debt crisis. ThereWas the GreekWe are at risk of another debt crisis. NowIt would be based solely on the lowest income countries. DebtIn 2020, it rose by 12% EvenDuring the pandemic when most of the economic activity was declining, their debts were rising. We’veThis big challenge has prompted two major reports in the past two months. I’vebeen advocating for debt relief for the least developed countries. That’sIt was difficult to achieve. TheThe world is not set up for this kind of thinking. ButThere is no way to do it.
MARGARET BRENAN: I have a question about climate. WeJust saw this weekend the wrap up of the U.N. conference. RichFor a long time, countries have pledged that they would contribute $100 billion per year to help low income countries adapt to extreme weather. FiveIt is possible to multiply that number up to 10 times. SoWhat was the failure rate of this climate change conference?
MALPASS: TheseThese are enormous challenges. I was happy to hear them speak about specifics, such as methane and coal. YouMethane is a powerful greenhouse gas-gas and scientists are working to reduce it. TheLeakage that comes from wells or pipelines That’s practical. The World BankIt is very much on this side. WeHow do you find projects that have an impact? AndYou are absolutely right. TheThe amount of funding needed to be much higher than what has been – the amounts that have been discussed are sufficient. The World BankIt is impossible to do it by yourself, but I believe it will take the whole world’s effort. WeWe don’t want to punish those who are poor, and they are already being punished by inflation as you mentioned. AndYou already know that China RussiaThese conditions can be beneficial in certain ways. ChinaBecause it is the heart of the supply chain RussiaBecause it has so many energy sources. AndThis is why we have to find a balance in order to pay for the climate change that would actually reduce greenhouse gases. ThatIt can be practical, and coal-coal is one. HowDo you decommission coal-fired power plants?
MARGARET BRENNAN: Right.
MALPASS: SomeOperating in South AfricaAre 55 years old So, we’re working. The World Bankis actively involved in all these issues and trying for practical projects that are financially feasible.
MARGARET BRENNAN – I have a question about something you wrote last summer. YouAwarded an op ed Melinda GatesTalking about the recovery that requires an investment in women in specific. AndYou stated that all countries would benefit from quality childcare and family leave policies. SoAre you an economist and do you believe that paid leave is necessary for a recovery of the economy?
MALPASS: WellAll countries require family leave policies. SoI don’t know much about paid-that’s a, well, I don’t want comment on U.S. politics. ButFor- for the world, I- I heard about the women in the workforce and I- I heard Secretary YellenTalking about it. ThisThey are vital as they are a key part in how countries can grow. AndIt’s not just for the labor force. WomenIncluded in inheritance rights, for instance. InSome countries are unable to do this. AndEducation, especially for girls, is a vital necessity in the modern world. IfIf you want to grow, this must be your starting point. AndSome parts of the world are not at this point. SoWe are committed to addressing these issues, including gender equality and inclusion in the- financial system, the labor market, and other related issues.
MARGARET BRENNAN: Understood. MakingThe economic argument. NotThe political one. We’llYou will be right back in a second.
Source: CBS News