Josh Frydenberg at the 104th Virtual Meeting of the Development Committee - October 15, 2021 Statement

Jul 19, 2026

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Statement by Hon. Josh Frydenberg, MP, Treasurer of Australia, delivered on behalf of a constituency at the 104th meeting of the Development Committee on October 15, 2021. The address assesses the fragile, uneven global recovery after the pandemic, highlights risks from new variants, and stresses the need for concessional financing, effective SDR channeling, and strengthened resilience for the poorest and most vulnerable. It also focuses on small states’ structural vulnerabilities, gender inequality worsened by the pandemic, and climate change impacts in the Pacific.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages4

Reading Time10 min

Overview

Development Financing

Small States

Gender

Climate Change

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 FOURTH MEETING WASHINGTON, DC – OCTOBER 15, 2021 DC/S/2021-0053 October 15, 2021 Statement by Hon. Josh Frydenberg, MP Treasurer of Australia Australia On behalf of the constituency comprising Australia, Cambodia, Kiribati, Korea (Republic of), the Marshall Islands, Federated States of Micronesia, Mongolia, Nauru, New Zealand, Palau, Papua New Guinea, Samoa, Solomon Islands, Tuvalu and Vanuatu Statement by Hon. Josh Frydenberg, MP Treasurer of Australia Australia On behalf of the constituency comprising Australia, Cambodia, Kiribati, Korea (Republic of), the Marshall Islands, Federated States of Micronesia, Mongolia, Nauru, New Zealand, Palau, Papua New Guinea, Samoa, Solomon Islands, Tuvalu and Vanuatu 104th Meeting of the Development Committee October 15, 2021 Washington, DC Overview As we come together today, eighteen months after the onset of the pandemic, the global recovery remains fragile and uneven across countries, regions and sectors. The optimism of the spring has given way to uncertainty about the pandemic’s duration, the risks posed by new, more transmissible variants ofthe virus, and divergent economic prospects and paths within and across countries. Uneven vaccine access leaves the specter of a two-track pandemic and the ongoing risk of new variants emerging. We remain encouraged by the scale and speed of the response from the World Bank Group (WBG), yet the needs in emerging market and developing economies remain vast. While our region fared well in terms of health outcomes during earlier waves of the pandemic, some countries have been hard hit by the third wave, and many remain in economic crisis, with closed borders, severely stretched fiscal positions and some years away from a return to pre-pandemic per capita incomes. The scale of the crisis and its long-lasting effects will become more evident in the coming months and years, particularly its impacts on human capital accumulation. The most vulnerable in society have been disproportionately affected, including women and girls, people with disabilities, those in poverty and those working in the informal sector. The increase in global poverty for the first time in almost a quarter century, the reversal of a decade of development gains in some parts of the world, sluggish growth and rising inequality makes for less stable and secure societies. Development Financing Concessional finance is critical for rebuilding fiscal buffers and resilience for the poorest and most vulnerable countries. We welcome the progress since the Spring Meetings on an ambitious twentieth replenishment of IDA for supporting these states. We applaud the WBG Executive Directors for the outcome of the IDA Voting Rights Review and the spirit of compromise with which they approached the task of reforming the IDA voting rights framework for the first time in half a century. With the allocation of US$650 billion of Special Drawing Rights to supplement existing international reserves, we urge the Bank and Fund to collaborate on the proposed Resilience and Sustainability Trust for channeling SDRs to countries most in need, and to find new and complementary ways in which to work more effectively together. We would welcome the development of viable options for channeling SDRs through multilateral development banks. Small States The pandemic continues to underline the manifold structural vulnerabilities of small island states, such asthe Pacific nations in this constituency, which have been amongst the hardest hit by the economic crisis and remain susceptible to multiple shocks. Their narrow economic base has resulted in deeper recessions, especially in those countries that rely on tourism, and their rebound ha

FAQs

What overarching message does the statement give about the pandemic recovery?

It emphasizes that eighteen months after the pandemic began, recovery remains fragile and uneven, with new transmissible variants and divergent economic prospects sustaining uncertainty.

Why does the statement stress concessional financing?

Concessional finance is presented as critical to rebuild fiscal buffers and improve resilience for the poorest and most vulnerable countries.

Which groups and vulnerabilities does the statement highlight as disproportionately affected?

It highlights women and girls, people with disabilities, those living in poverty, and workers in the informal sector, noting that impacts extend to human capital accumulation.

Jul 19, 2026

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