Chair’s Statement: 112th Meeting of the Development Committee

Ms. Elisabeth Svantesson, Minister for Finance, Sweden The global economy is undergoing a profound transformation and facing elevated uncertainty, bringing challenges, but also opportunities. Growth has been resilient, but strains are emerging. We will adopt sound policies that foster confidence, build resilience, and safeguard macroeconomic and financial stability. We will continue to cooperate to address global challenges. Ongoing wars and conflicts continue to impose a heavy humanitarian toll, with large economic costs and significant negative spillovers. Ending wars and conflicts and securing lasting peace around the world remains essential for sustainable growth and long-term stability. The Development Committee met on October 16, in Washington, D.C. Governors noted that the global economy continues to face significant challenges and uncertainties in the short and medium term, hindering efforts to sustain economic growth, create jobs, and reduce poverty. Members welcomed the Foundations for Growth and Jobs paper and recognized WBG’s ongoing work to support client countries to establish the physical, human, and natural infrastructure necessary for job creation, enabling effective policy and regulatory business environments, boosting regional connectivity and trade, and mobilizing cross-border and domestic private capital, where IFC and MIGA will play a crucial role. The Development Committee asked the WBG to continue to leverage its financing and knowledge capacity and work as One WBG to lift barriers to job creation and boost private sector investment in the interest of clients. Members supported the work of the WBG in expanding access to quality education, including technical and vocational training, aligning skills with industry needs, removing barriers to economic opportunities and entrepreneurship for all, including for women and girls. Members were encouraged by the WBG’s continued engagement to deliver accessible, affordable, and reliable energy to those who most need it, including Mission 300 with the African Development Bank and partners. Governors recognized rising demand for access to energy because jobs, basic public services, businesses, and increased digitalization will require it. The Development Committee called on the WBG to continue to collaborate with the International Monetary Fund and development partners on countries’ debt sustainability, transparency and vulnerabilities and to support countries on effective and fair domestic resource mobilization. Governors also called for the WBG to continue to strengthen partnerships with other international organizations and the private sector. The Development Committee acknowledged the World Bank Group’s efforts to become faster, simpler, more efficient, and impactful—deepening its focus on results and leveraging lending capacity, while preserving its triple-A rating and the organization’s financial sustainability. Governors note greater emphasis on quality-based approaches, local labor, and job creation in the revised WBG procurement regulations. Governors urged the WBG to continue its efforts to maximize impact with clients, as reflected in the Scorecard. Members noted that in fiscal year 2025 the WBG increased its financial commitments to $118.5 billion and mobilized $69.9 billion of private capital to deliver on its mission of ending extreme poverty and boosting shared prosperity on a livable planet. In the context of helping clients deliver strong development impact, members noted that FY25 projects delivered climate co-benefits of 48 percent. Members call for a continued focus on low-income countries, states affected by fragility, conflict, and violence (FCV), and small states. Governors look forward to discussions on a new WBG Strategy for Fragility, Conflict, and Violence and the forthcoming Small States Strategy. Governors gave consideration to further dialogue to address the challenges faced by middle income countries. The Development Committee renewed its support for IDA and looked forward to strong progress on IDA21 implementation. Members acknowledged the Progress Report to Governors on the 2025 Shareholding Review. The next meeting of the Development Committee is scheduled for April, 2026, in Washington, D.C.