Development Committee 103rd Meeting Statement by Dr. Bandar M.H. Hajjar

Jul 19, 2026

Upload by Sage

Statement by Dr. Bandar M.H. Hajjar, President of the Islamic Development Bank Group, delivered at the 103rd Development Committee meeting (virtual) on April 9, 2021. The statement thanks the World Bank Group and IMF and describes COVID-19 impacts beyond health, highlighting weakened global cooperation needs. It emphasizes rising poverty and unprecedented labor-market losses, argues that debt sustainability is critical as global debt surges, and discusses the insufficiency of existing initiatives. It also calls for equitable vaccine access, faster distribution capacity, and strengthened global action through mechanisms such as COVAX.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages4

Reading Time10 min

Key messages

COVID-19 impacts and the need for cooperation

Surviving the impacts of COVID-19 on poverty and jobs

Debt sustainability as a priority

Strengthening debt treatment and restructuring

Equitable access to vaccines

Public Disclosure Authorized Public Disclosure Authorized DEVELOPMENT COMMITTEE (Joint Ministerial Committee of the Boards of Governors ofthe Bank and the Fund on the Transfer of Real Resources to Developing Countries) ONE HUNDRED AND THIRD MEETING WASHINGTON, DC – APRIL 9, 2021 (VIRTUAL) DC/S/2021-0002 April 9, 2021 Statement by Dr. Bandar M.H. Hajjar President Islamic Development Bank Group Statement by Dr. Bandar M.H. Hajjar President Islamic Development Bank Group 103rd Meeting of the Development Committee April 9, 2021 Washington, DC (VIRTUAL) I would like to thank the World Bank Group and the International Monetary Fund for convening this virtual meeting and playing an instrumental role in enhancing global cooperation in tackling the wide-ranging impacts of the COVID-19 crisis. The pandemic is more than a global health crisis. It has laid bare several weaknesses and fragilities in our current system, making global cooperation and coordination ever more crucial. Surviving the impacts ofCOVID-19 After more than a year into a pandemic that has ravaged the global economy, the fight against COVID-19 is far from over, and we continue to grapple with its consequences. Indeed, while economic activities are expected to recover in 2021, with the global economy projected to grow by 5.5 percent, the recovery remains fragile and is mired in deep uncertainty. The impacts on several socio-economic dimensions have been devastating. The pandemic is reversing significant gains made in the fight against global poverty. After more than two decades of steady global poverty reduction, the crisis is expected to result in between 119 and 124 million more people falling into extreme poverty in 2020 and between143 and 163 million by 2021. This would bring poverty rates back up to levels last seen before 2017. One of the major contributing factors behind this significant rise in poverty is the adverse impact that the pandemic is causing on the labour market. According to the International Labour Organisation (ILO), the impact has been unprecedented in its scale and is four times greater than during the global financial crisis in 2009, with estimated global employment losses that amounted to 114 million jobs in 2020. Addressing debt sustainability issue is key The unprecedented policy measures taken to mitigate the health and economic effects of the pandemic, coupled with sharp declines in tax revenues due to lower growth and trade, are pushing debt levels to new heights. A study by the Institute of International Finance finds that a total of $24 trillion has been added to global debt in 2020, bringing it to a record high of $281 trillion or over 355 percent of world GDP. According to the IMF, sovereign debt to GDP in advanced economies is projected to rise by 20 percentage points to about 125 percent of GDP by the end of 2021, while emerging markets and developing economies are projected to see their debt increase by more than 10 percentage points to about 65 percent of GDP. As for IsDB Member Countries, sovereign debt is also on the rise and is expected to reach 50 percent of GDP in 2021. If not addressed accordingly, the ballooning debt will prove to be disastrous and may cripple the affected countries’ hope for economic recovery from the pandemics. Therefore, addressing the issue of debt overhang, particularly in low-income developing economies should remain a priority. We are encouraged by the continuous global efforts in this regard, notably the G20 Debt Service Suspension Initiative (DSSI) and the IMF’s Catastrophe Containment and Relief Trust (CCRT), which have provided valuable relief for some of the most vulnerable countries. Nevertheless, these initiatives remain insufficient relative to the magnitude of the challenges we face. Widening the scope to include the private sector, especially the SMEs, and improving the debt restructuring procedures are among the important additional

FAQs

What overall impact of COVID-19 does the statement emphasize beyond public health?

The statement highlights that COVID-19 exposed weaknesses in current systems and caused major socio-economic damage, including reversing progress against global poverty and undermining the labor market.

Why is debt sustainability presented as a key issue?

It argues that policy measures and falling tax revenues have pushed debt to record levels, and without action, rising debt overhang could severely hinder economic recovery in affected countries.

What does the statement suggest to improve responses on debt and vaccine access?

It welcomes G20 initiatives while urging broader scope including private sector and better restructuring processes, and it calls for scaling up vaccine manufacturing and funding for COVAX to ensure equitable distribution.

Jul 19, 2026

Upload by Sage