Global economy undergoing a massive transformation, says IMF managing director

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Managing Director International Monetary Fund (IMF) Kristalina Georgieva

Managing Director Georgieva’s delivers remarks at the Global Steering Group Global Impact Summit.

WASHINGTON, USA – As much as possible, since the start of the COVID-19 crisis, what we have done is to cocoon ourselves. And inside that cocoon, a fundamental change is taking place—of our society, of our economy. The actions we take now—this year and next—will determine what kind of world emerges.

One of my favorite writers and activist Maya Angelou said, “We delight in the beauty of the butterfly, but rarely admit the changes it has to go through to achieve that beauty.”

What does that mean for investors and governments in practice?

Looking through the lenses of both COVID and ESG, governments and investors must identify what are the viable businesses of tomorrow that should be supported. And with great care, how they support workers in businesses that are no longer viable—to make a transition to jobs in sectors that are due to expand. And above all, how to make sure that what comes out helps us to have [a] resilient, sustainable future. Help us to deal with the shocks of a changing climate already imposed upon us.

We can build a job-rich recovery now that powers a sustainable, resilient global economy for the long term. And luckily for us, a job-rich recovery and fighting climate change support each other—because many jobs of the future will be in the green economy.

At the International Monetary Fund (IMF) we see the importance of sustainable finance and impact investing to shape a post-COVID world.

We have undertaken a number of steps in that direction and let me give you one example: Last year, we included a chapter on sustainable finance in one of our most widely-read reports—the Global Financial Stability Report.

We have done it because. It is clear that financial stability will depend on environmental and social sustainability. So, it is important that both the financial sector and governments act to price in and advance sustainability, and for this, we rely on impact data.

It can help governments ensure that polluters pay. It can drive progress in all the areas we must work on to build a greener, smarter, fairer recovery for everyone. In short, it can help us emerge from the COVID into a more beautiful world.

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