Navigating Multiple Crises, Staying the Course on Long-term Development: The World Bank Group’s Response to the Crises Affecting Developing Countries

The proposed framework for the WBG’s operational response rests on four interconnected pillars combining support to crisis response and long-term development. The WBG’s objective is to provide mutually re-enforcing support by addressing short-term shocks to improve prospects for long-term sustainable development, while developing long-term resilience to help prepare for future shocks. The four pillars of the crises response include:

1. Responding to Food Insecurity through immediate crisis response to provide urgent support and avoid long-term derailment of development prospects;

2. Protecting People and Preserving Jobs to help mitigate the medium- to long-term impact of crises;

3. Strengthening Resilience to be better prepared for any future crisis and challenges; and

4. Strengthening Policies, Institutions and Investments for Rebuilding Better to utilize the opportunities the crises provide to improve long-term development outcomes.

WBG support under Pillar 1 will respond to the urgent need to respond to food insecurity and protect the vulnerable in the midst of the ongoing food crisis. Operations will align with the WBG’s May 2022 comprehensive response to food security and will include supply and demand side interventions—for example, support to agricultural production and producers, and targeted cash transfers through social protection frameworks—to increase food supply and protect the most vulnerable from high food prices. Much of this work started in FY22, with important operations delivered or under preparation, including some under regional Multi Phase Programmatic Approaches (MPAs). IFC’s Global Food Security Platform will help support private sector activities to close the financing gap for agribusinesses across the food supply chain, while MIGA will provide trade finance for agriculture. Rapid policy and advocacy work to support open trade regimes and expedite the flow of essential goods will also be undertaken.

Under Pillar 2, the WBG will support additional operations to protect people from the multiple ongoing crises, including a focus on preserving jobs.

Support under Pillar 3 will focus on building long-term resilience and enhancing crisis preparedness, complementing operations across the four pillars that will also contribute to resilience-building. The WBG will focus on upgrading systems to make them less vulnerable to future crises. Operations will address crisis preparedness and disaster risk management, a top priority for strengthening resilience. The Bank is committed to rollout a new Crisis Preparedness Gap Analysis to inform IDA’s financial and technical support in this area. Efforts will continue with pandemic preparedness, learning from the experience of the recent pandemic. WBG will support countries to upgrade social protection systems to provide adaptive support programs that are able to respond rapidly to future shocks. Operations will help support nutrition-sensitive and sustainable food systems. Climate resilience will be supported through operations in this pillar and in Pillar 4.

WGB interventions under Pillar 4 will focus on longer term policies to advance the GRID agenda and help countries rebuild better. Much work is already underway. WBG support will focus on promoting climate-smart investments, facilitating resilient reconstruction, building strong institutions, supporting well-functioning health and education sectors, and using digital tools where feasible to enhance development solutions.

The WBG will make available around $170 billion over the period April 2022-June 2023.