Invest aid funds selectively to overcome crisis – IMF
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Governments need to invest aid funds more selectively to overcome the coronavirus crisis in the long term, International Monetary Fund Managing Director Kristalina Georgieva said.
They also need to make sure that public procurement is transparent and competitive so as to not lose the trust of citizens, Georgieva said at an Austrian economic forum, which she joined online.
“Countries will have to be more selective as to who they support,” Georgieva said, listing digital businesses and those that can profit from green climate policy as examples of potentially successful investments. “Up to now we support everybody.”
More than 100 countries have requested emergency financing assistance from the IMF so far. The fund has committed $270 billion of its $1 trillion war chest already, its chief said, adding that in total some $11 trillion have been invested in stimulus around the world.
Given the huge amount of funds, expenditure control was key. “Make sure that governments are put on a digital platform, so that citizens can see where does the tax euro actually go.”
Georgieva, a Bulgarian, said she hoped for a renewed drive towards strong policies and government transparency in central and eastern Europe.
