Dispute between Israel and Palestine at the IMF and the World Bank

Although officials at the International Monetary Fund (IMF) and the World Bank developed new financing plans aimed at mitigating economic crises, they demonstrated deep geopolitical disagreements by failing to respond to the effects of the war between Israel and Hamas.

The attack on Israel by the Palestinian Islamist armed organization Hamas on October 7 occurred as senior financial officials arrived in Morocco for the annual meetings of the IMF and the World Bank. The text of the meeting, which emphasized new resources and steps to revive stagnant global growth, was changed because of the attack on Israel.

THE IMF PRESIDENT DID NOT MENTION THE CONFLICT AT THE OPENING

IMF Managing Director Kristalina Georgieva did not mention the conflict between Israel and Hamas in her opening remarks. Georgieva found it difficult to address this issue as Israel’s retaliatory attacks increased, initially describing the events as a tragedy and describing them as a source of economic uncertainty.

Many participants, from financial groups to nonprofits, told Reuters in private conversations that the conflict between Israel and Hamas could have many effects, from a new refugee crisis to trade and the threat of conflict in Lebanon and the West Bank. .

“Faced with a global shock this big that is not a man-made climate shock, these institutions are incapable of doing anything, so they don’t even talk about it,” said Rachel Nadelman, a research assistant at American University. Accountability Research Center, which attended the meetings.

THERE IS NO PLACE FOR CONFLICTS IN THE STATEMENTS.

The conflict was not mentioned in the statements issued by the executive committees of the G20, the IMF and the World Bank.

The failure of the G20, IMF and World Bank to release a joint statement shows the growing geopolitical tensions due to the Russian invasion of Ukraine and disagreements between the United States and China.

The G20 official said the G20 has had differences of opinion for two years over the Ukraine war and the statement was only possible after US President Joe Biden and Chinese President Xi Jinping met in Bali last year.

“The conflict between Israel and Palestine has become even more contentious and almost impossible to reach a compromise,” the official said.

In his statement yesterday, World Bank President Ajay Banga highlighted that the war in Ukraine and conflicts in Africa, as well as the Gaza war with Israel, “long overshadowed” the achievements of the meeting and increased the economic difficulties. (REUTERS)