Post-COVID: IMF calls for synchronized investment in green, digital infrastructure
Amaka E. Nliam
The International Monetary Fund (IMF) is calling for a synchronized investment in green and digital infrastructure, as the world looks towards recovery from the COVID-19 pandemic.
The Deputy Managing Director, IMF, Antoinette Monsio Sayeh, made this call at the Warwick Economic Summit 2021, while elucidating four policy priorities, which include first bringing the health crisis under control; maintaining economic lifelines and policy support; supporting low-income countries through grants, concessional loans and debt relief; and investing in green and digital infrastructure.
DMD Antoinette M. Sayeh at #WES2021: “2021 can be the most consequential year of our lifetimes. If we can come together and sow the right policy seeds today, we can exit the crisis with minimal scarring and build the foundation of a 21st century economy.” https://t.co/JwjJY6BLtv pic.twitter.com/0H1Y7fb2Dq
— IMF (@IMFNews) February 6, 2021
“The IMF is calling for a synchronized investment in green and digital infrastructure, as the pandemic starts to come under control.
“Governments must put in place public investments—as well as incentives for private investments—that support low‑carbon and climate-resilient growth. These could be, efficient mass transit systems, smart electricity grids or phasing out harmful subsidies.
“The IMF estimates that a combination of green investments and appropriate carbon pricing can put us on a path towards net zero emissions by mid-century and help create millions of new jobs.
“Similarly, we know that the economy of the future will be digital. So, countries must enable a planned transition by investing in digital infrastructure—be it e-commerce, e‑learning, e‑government or digital money and payments.
“Of course, green and digital investment must also include support for workers as they transition from shrinking to expanding sectors. Increased investment in training, re-skilling and high-quality education will be pivotal to unlocking the potential of a green and digital economy. Already widely understood, this is nonetheless an important point needing greater attention than it has received in the past.
“At the IMF, we are moving fast in both of these areas. We are incorporating climate change into our country and financial risk assessments—and are scaling up capacity development in this area. We are also working with countries on policies that enable the new digital paradigm to become an engine of growth and financial inclusion,” Sayeh said.
She called on the international community to come together to help each other get to the other side of the pandemic:
“We can exit the crisis with minimal economic scarring. And if we begin to sow the right seeds of investments and policies today, we can go even further and build the foundation of a 21st century economy—one that each of you will inherit,” she added.
Amaka E. Nliam
