Katayama's Address at the 81st IMF-World Bank Annual Meetings
Overview
The address outlined the global economy’s heightened uncertainty amid geopolitical tensions and trade restrictions, explained Japan’s economic and fiscal policies, and described the roles expected of the IMF and World Bank Group (WBG). It called on the IMF to strengthen lending, capacity development, and governance reform, and urged the WBG to advance development impact and mobilize private finance, including in health, critical minerals, and infrastructure. It also encouraged the two institutions to coordinate on debt transparency and restructuring and domestic resource mobilization, and set out Japan’s policies on support and contributions.
Key points
- The global economy must address uncertainty and structural challenges while achieving economic growth and fiscal sustainability.
- The address called on the IMF to strengthen its functions, including lending and capacity development, and to reform quotas and governance.
- The address expressed expectations for the WBG to improve development impact, mobilize private finance, and advance work in health, critical minerals, and infrastructure.
- The address encouraged coordination between the IMF, WBG, and other international institutions on debt challenges and domestic resource mobilization.
Overview
The address stated that the global economy faces high uncertainty and risks, including adverse effects on supply chains from geopolitical tensions and trade restrictions. The situation in the Middle East affects energy supplies and logistics, while arbitrary export controls on critical minerals were also identified as a downside risk.
The address said Japan must respond to structural challenges, including technological innovation, increasingly severe and frequent natural disasters, and demographic change, and strengthen economic resilience. Japan set out a policy of balancing growth with fiscal sustainability, including by steadily lowering the ratio of general government gross debt to GDP.
Impact
The address stated that quality-focused procurement based on life-cycle costs contributes to stronger development impact and sustainability in borrowing countries.
Details
The address expressed expectations for the IMF to analyze the effects of global imbalances and non-market policies and practices on the global economy; ensure the sustainable and effective implementation of the PRGT to support lending to low-income and vulnerable countries; cooperate with regional financing arrangements; and strengthen capacity development. Japan will continue voluntary financial contributions to the PRGT and other programs. The address also called for advancing functional strengthening and governance reform together, including by reviewing the quota formula and reflecting responsible contributions.
The address called on the WBG to expand the One WBG approach, coordination among MDBs, and private finance mobilization, and welcomed continued procurement reform. In health, it expressed expectations for work through the UHC Knowledge Hub and Pandemic Fund, and Japan announced a new contribution of 40 million to the GFF for maternal and child health and nutrition support. On critical minerals, the address supported project development through country strategies and RISE+ and expansion of MIGA’s guarantee capacity. It also encouraged project development in quality infrastructure, disaster risk reduction, and energy security.
The address called on both institutions to coordinate on debt data sharing, faster debt restructuring, restructuring for middle-income countries, and support for domestic resource mobilization. Japan will continue technical assistance and looks forward to the wider adoption of results from the automated reconciliation of creditor and debtor data that the World Bank and Indonesia are advancing. In closing, the address said Japan would lead discussions on reforming both institutions and contribute personnel.