Recto leads G-24 push for IMF, World Bank reforms

Finance Secretary Ralph Recto, serving as the Chair of the Intergovernmental Group of Twenty-Four (G-24) Board of Governors, led a key meeting at the International Monetary Fund (IMF) headquarters in Washington, D.C. on October 22. Recto emphasized the need for strategic reforms to enhance the IMF and the World Bank Group's (WBG) ability to serve developing nations effectively.

As Chair of the G-24 Bureau for 2023-2024, Recto outlined four critical reform initiatives during the high-level meeting of ministers and governors. He stressed the urgency for these global financial institutions to adopt a proactive and innovative approach to address emerging challenges.

“We are calling for a more adaptive and forward-thinking IMF and World Bank. It’s essential for these institutions to not only keep up with the evolving global landscape but also lead the way with strategic foresight,” Recto stated. He highlighted the importance of enhanced development cooperation, increased support, and more responsive policies to counter economic pressures and promote global peace and prosperity.

Among the proposed reforms, Recto advocated for the creation of a new liquidity provision mechanism by the IMF. This initiative aims to support countries with sound economic fundamentals during periods of financial instability. He also urged the WBG to set higher goals for its concessional and non-concessional lending programs to help nations achieve inclusive and sustainable development targets by 2030.

Another key focus was the reform of the Sovereign Debt Resolution Framework to offer comprehensive and timely debt relief to vulnerable economies. Recto also called for accelerated governance and institutional reforms within the Bretton Woods System to amplify the voice and representation of developing nations in global financial decision-making.

“Without bold reforms and decisive actions, decades of collective efforts to alleviate poverty, reduce inequality, combat climate change, and drive growth-enhancing investments could be derailed,” Recto warned. “We are counting on this meeting to set the stage for unprecedented multilateral cooperation and action.”

During the session, IMF Managing Director Kristalina Georgieva and WBG Senior Managing Director Axel van Trotsenburg outlined their respective institutions’ initiatives to expand concessional financing access and support developing nations in enhancing productivity, boosting long-term growth, and building resilience against economic shocks.