Can global institutions address developing crises

The recent meetings of the International Monetary Fund and the World Bank in Thailand focused on the economic challenges facing developing countries, especially amidst the ongoing escalation of conflicts in the Middle East and Ukraine, increasing debt burdens, and the potential emergence of an artificial intelligence bubble. The financial institutions did not offer new solutions, relying instead on traditional advice such as reducing deficits and accelerating economic reforms to attract investments. Meanwhile, low-income countries are facing rising debt servicing costs and increasing inflation, with debt payments reaching 14% of government revenues, which reduces expenditure on vital sectors. Some statements indicated that advanced economies are partly responsible for the imbalances, and that the economic gap is widening, thereby increasing the challenges for developing nations. There is also uncertainty about how to address future challenges, given the lack of clear strategies to cope with the potential impacts of artificial intelligence and geopolitical events.

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