IDA-21 Meeting: PM Dahal calls for support to address development challenges
KATHMANDU: Prime Minister Pushpa Kamal Dahal has called for addressing the challenges faced by countries that were left behind during the industrial revolution to ensure global peace and common prosperity.
At the inauguration of the Third Replenishment Meeting of the World Bank's fund for low-income countries, the International Development Association (IDA-21), which commenced today in Kathmandu, Prime Minister Dahal stated that countries struggling with development should receive concessional financial support to accelerate their development pace.
"By providing equitable access to resources, technology, and investment, we can support nations that are lagging in development, address existing inequalities, and promote only inclusive economic conditions," said PM Dahal. "This is vital not just for uplifting these nations but also for global stability and economic resilience. To contribute, we must support the sustainable development initiatives of these countries."
PM Dahal noted that despite concerted efforts for inclusive economic growth, financial resources remain inadequate for sustainable development goals (SDGs), Nationally Determined Contributions (NDCs), and sustainable infrastructure development. He emphasised that concessional assistance is also essential to create more jobs, stimulate economic activity swiftly, and graduate from Least Developed Countries (LDCs).
"Financial resources should be channelled into developing the quality of human capital, health, and education. Similarly, our priority is to transform quality infrastructure and improve people's living standards," PM Dahal remarked. "We have been focusing on digitalisation, investing in productive sectors, fostering entrepreneurship, creating jobs, and promoting inclusion through skill development. Dahal stated that tackling climate change should be a priority, alongside assisting nations with fragile and small economies and ensuring food security.
Expressing optimism that the IDA-21 meeting will forge a strong consensus among donors and beneficiaries on policy priorities and an outcome blueprint for the next three years, PM Dahal expressed confidence in securing high-level pledges to tackle the unprecedented crises at present. He added, "IDA beneficiary countries, including Nepal, are eager to witness its broader impact and harness the significant potential of these resources."
PM Dahal highlighted that the effects of climate change have heightened sensitivity and warned of a potential reversal of hard-won developmental achievements.
Acknowledging that concessional financial aid is crucial for underdeveloped nations like Nepal, he said, "We are susceptible to various crises with a risk that our hard-fought developmental gains might be undone." The Prime Minister mentioned that Nepal has been disproportionately impacted by climate change's adverse effects despite its negligible contribution to global emissions.
"We are advocating for climate justice to receive compensation for damages and losses incurred due to factors beyond our control," said PM Dahal. He mentioned that a devastating earthquake, disasters, global pandemic, and worldwide economic challenges have compounded the obstacles to Nepal's economic growth and prosperity.
Mentioning that Nepal has steadfastly advanced on the path of economic development by capitalising on its considerable potential following political stability, the prime minister asserted that Nepal is well-positioned with abundant hydroelectric resources, tourism, and agribusiness sectors, and a diligent young population. PM Dahal recalled that IDA has been a significant development partner of Nepal for six decades, having mobilised substantial financial resources for reconstruction after the 2015 earthquake.
The World Bank's Senior Managing Director, Axel van Trotsenburg, stated that IDA acts as a mediator between donor and beneficiary countries for financial resource mobilisation. "This meeting will steer the resource allocation of IDA. It will determine how to advance in a structured manner for the next decade, not merely for the present," he said.
Businessperson Sangita Shrestha noted that despite being geographically, culturally, and ecologically diverse, Nepal faces significant risks from various natural disasters and the impacts of climate change. She called upon development partners and policymakers to collaborate closely for the smooth and effective mobilisation of financial resources for the sustainable development of countries like Nepal, which are vulnerable.
High-ranking officials from the World Bank and approximately 200 representatives from over 61 countries are participating in the IDA-21 meeting that commenced today in Kathmandu.
