A Green, Resilient and Inclusive Recovery: The monumental task and unique opportunity for legislators

The World Bank Group organized a Global Parliamentary Workshop from April 5-6, 2021 alongside the International Monetary Fund (IMF) and the Parliamentary Network on the World Bank and IMF (PN) on the occasion of the virtual 2021 Spring Meetings. The two-day event connected legislators from around the world with their peers and experts from the World Bank and IMF on the theme “From the Pandemic to the Paris Agreement: How to avoid a great divergence.”

More than 160 parliamentarians from 53 countries and the European Parliament convened to share successful strategies for navigating the COVID-19 pandemic and leading their countries through to a green, resilient, and inclusive recovery. Parliamentarians, as drivers of change and guardians of transparency, play an important part in embarking their countries on a greener, smarter, more equitable development path. Through creative policies and reforms as well as targeted resources, they can help set the foundation for long term, robust growth.

“Parliamentarians’ role in targeting funding and tailoring programs to the most vulnerable and marginalized people, overseeing governments – especially in support of transparency – and implementing reforms for a green recovery are critical in paving the way to a robust and sustainable recovery.” Mari Pangestu, Managing Director of Development Policy and Partnerships, World Bank

COVID-19 has evolved from a pandemic of disease to a pandemic of inequality. It threatens to push millions more people into extreme poverty this year as the poor and vulnerable are the hardest hit by illness, job and income losses, school closures, and inequal access to vaccines. The crisis has affected almost every aspect of peoples’ lives, from societal norms to economies, with lower remittance flows, reduced trade, and sinking GDPs fueling a debt crisis. The Workshop served as a platform for dialogue and knowledge-sharing on how to counter the COVID-19 pandemic and capitalize on the once-in-a-lifetime chance to build back stronger, greener, and fairer.

“We have a once in a lifetime opportunity to build a solid foundation for a more inclusive economy, which is why we are calling on policy-makers to use the next round of fiscal stimulus to invest in a greener and more digital future” Antoinette Sayeh, Deputy Managing Director, IMF

The first session, titled “Getting to the End of the Tunnel,” was opened by World Bank Managing Director of Development Policy and Partnerships Mari Pangestu and IMF Deputy Managing Director Antoinette Sayeh, who gave updates on the work and priorities of their organizations. Special emphasis was placed on vaccines rollout and reforms in health and education to protect lives, restart economies and boost human capital. The second session, “From Lockdown to Liftoff” explored how countries can deal with high debt and high deficit while mobilizing the resources to finance global development goals, strengthen human capital, and fight climate change.

"Policymakers have had to innovate faster than ever to respond to the pressure of this crisis. We come together and make sure we share those lessons learned with each other. Crucially, we need to continue the dialogue with international finance institutions about how their programs need to adapt at the country level in order to help us navigate some of the enormous challenges that still lie ahead.” The Rt. Hon. Liam Byrne MP, UK and Chair of the Parliamentary Network on the World Bank and IMF

During the workshop, the importance of communication and cooperation between countries and with multilateral organizations was highlighted as crucial in confronting overlapping, cross-border challenges as well as establishing preemptive agreements to prepare for future crises. Both green and digital technology were also underscored as equalizers to help developing countries leapfrog to better development outcomes. Policymakers were encouraged to innovate and search for multi-faceted solutions that create synergies, for example, countries must address the health crisis before they can improve economies, and “going green” will in turn create jobs and growth.

Parliamentarians and policymakers are facing unprecedented challenges, but by working together, sharing knowledge and experiences beyond national horizons, they can lead their countries and the collective global community on to a green, resilient, and inclusive future.

Key Takeaways:

• In addition to laws, oversight and representative functions, parliamentarians have a vital role to play in improving legislative performance. They have the opportunity to design innovative policies, expand social safety nets, and channel resources to address the overlapping challenges of debt, climate, jobs creation, and improve human capital for a green, resilient, and inclusive recovery.
• There should be no trade-off between jobs and going green or between the economy and health – they go hand in hand.
• Some sectors will jump back better and faster than others. Green and digital development will be equalizers that boost recovery, but this means reallocating jobs and skills, which requires understanding from citizens and government support of infrastructure.
• Vaccines and investments and reforms in health and education will be key to boost human capital and ensure that an entire generation is not left behind.
• Debt transparency is critical for the recovery process. Good debt and smart taxation could be harnessed to create growth.
• International collaboration and communication are essential during this unchartered crisis as well as to put agreements in place to proactively prevent future pandemics and climate shocks.
• The World Bank and IMF can support countries with technical assistance and evidence-based policy implementation at the country level and convening power at the regional and global levels to encourage the application and sharing of best practices.