The international community must act quickly and decisively to prevent the recent accumulation of public debt from leading to a series of debt crises, warns the World Bank in its latest report on the Global Economic Prospects. The banking institution particularly asked developing countries that do not have enough means to assume a new lost decade to watch over their debts.

The world economy, heavily affected by the Covid-19 pandemic, is expected to grow by 4% in 2021, provided that the initial deployment of vaccines against Covid-19 leads to massive vaccination campaigns throughout the year. In this respect, "the recovery is nevertheless likely to remain modest if political leaders do not take decisive action to stem the pandemic and implement reforms conducive to investments", informs the World Bank in its last semi-annual edition of the Prospects. global economies. Despite the restart of the world economy, after the contraction of 4.3% recorded in 2020, a heavy price has been paid because of the pandemic, in terms of “morbidity and mortality” and which has “plunged millions of 'individuals in poverty', mentions the press release of the world institution dated yesterday, Tuesday, January 5. For many more months, “economic activity is therefore likely to be slowed down and incomes considerably reduced,” warns the World Bank. THE IMPERATIVE FOR STATES TO GO ON A CRUSADE AGAINST THE PANDEMIC The immediate priority for political leaders is “to control the spread of the coronavirus and quickly organize massive vaccination campaigns”, indicate the economists of the World Bank Group. To support the recovery, the authorities must also encourage an investment cycle that will foster sustainable growth and be less dependent on public debt. "As the global economy seems to be heading for a timid recovery, policymakers are faced with daunting challenges such as public health, debt management, fiscal policies, central bank action or reforms. to ensure that this still fragile momentum is confirmed and lays the foundations for solid growth," said David Malpass, President of the World Bank Group. To weather the effects of the pandemic and weather the headwinds to investment, “we need to give a decisive boost to efforts to improve the business environment, increase labor and product market flexibility, and enhance transparency and governance," he said. Compared to the short-term outlook, economists see a chiaroscuro. According to a pessimistic scenario of a continued rise in contamination and a delay in the deployment of vaccines, “the global economy could only regain 1.6% in 2021”, project growth specialists. Conversely, in the event of control of the pandemic and acceleration of vaccination, they further speculate, “the rate of growth could reach almost 5%”. And Ayhan Kose, the World Bank's Acting Vice President for the Equitable Growth, Finance and Institutions Division, argues that "the pandemic has greatly exacerbated debt risks in emerging markets and developing economies, knowing that sluggish growth risks further increasing the debt burden and eroding the ability of borrowing countries to repay it…”. Jean-Pierre MALOU