The inflation and the geopolitical instability will dominate the next matches of the International Monetary Fund(IMF) and the world Bank (BM), but some small countries, such as barbadosthey dream of completely change the rules of the gamebecause of climate change.
The countries most exposed to global warmingbut with less voice in the big international forums, have enormous difficulties to raise the money needed to prepare for the future.
“We think we have a plan”explained the Barbadian Prime Minister Mia Mottleyat the last conference on climate change, the COP27in November in Egypt.
The Barbadian proposal
The Bridgetown Initiative proposes to use as collateral the US$500,000 million in IMF special drawing rights for create a new trust fund that would manage to raise the necessary money so that the developing countries that suffer natural disasters derived from climate change should be entitled to a two-year pause in the repayment of its foreign debt.
As stated in this proposal, those funds should come in part from a tax on fossil fuels.
The response of international organizations
Last year, the IMF created the Trust Fund for Resilience and Sustainability for countries facing macroeconomic risks due to climate change and pandemics. barbados it was the first country to request this line of credit.
He BM is at the same time under special pressure, after the resignation of its president David Malpass for some controversial statements on climate change. However, last year the institution approved projects worth US$31.7 billiona record number, for adaptation projects and fight against climate change.
“I think that at this moment there is a consensus”assured Avinash Persaud, the economist who heads the Bridgetown Initiative, told AFP. Of achieving it “we will change the future of 3.2 billion peopleespecially since that group is growing,” he added.
Source: Ambito
