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Implementing MDB Reforms: A Stocktake
Brookings
2024.04.18
The challenges facing the developing world got steeper in 2023. About half of International Development Association(IDA)-eligible countries failed to recover to pre-pandemic income levels. Per capita growth was anemic: 0.7% in Africa, 0% in the Middle East, and 1.5% in Latin America, partly because of weak investment levels. Currently, gross investment in most emerging market and developing countries (EMDCs) barely covers the depreciation of the existing capital stock; investment rate is 38% of GDP. The consequence of such low investment rates is that EMDCs will be unable to trasition to green economies, to adapt to already-present climate change, or to sustain rapid growth, with dire impact on their own populations and on the global efforts to reach net zero.