Global Leaders Urge Fairer Economic Deals and Cooperation to Rebuild Global Growth
As the world grapples with rising fragmentation and mistrust, global economic leaders have called for urgent reforms to rebuild the global economy on fairer and more innovative foundations. Speaking at the IMF–World Bank Annual Meetings, key policymakers, including IMF Managing Director Kristalina Georgieva, European Central Bank President Christine Lagarde, and Singapore’s President Tharman Shanmugaratnam, emphasized that restoring trust and cooperation among nations is crucial for sustainable growth.
Georgieva unveiled the IMF’s Global Policy Agenda, highlighting the need for countries to rebuild fiscal strength, reduce debt, and empower the private sector. She urged governments to embrace reforms that encourage entrepreneurship and innovation, noting that “countries must rebuild fiscal space and reduce debt through smart budget choices and renewed discipline.” She also called on surplus economies like China to stimulate local demand, while urging deficit nations such as the United States to curb excessive fiscal spending and boost savings.
The discussion quickly expanded into a broader debate about agility and innovation in policymaking. Lagarde emphasized that the post-pandemic world has forced central banks and governments to rely less on models and more on judgment. “We had to navigate a situation where a lot of what was happening was not normal,” she said. Shanmugaratnam added that agility—not size—will determine the next phase of competitiveness, arguing that even large economies must “start thinking like small countries—always alert, never complacent.”
The leaders warned that economic nationalism and weak international collaboration pose long-term threats to global progress. Shanmugaratnam lamented that international cooperation is “at its weakest in 80 years,” even though it is needed most. However, he remained optimistic, saying that the U.S.–China rivalry should be “managed, not feared.” The sentiment was echoed across panels discussing trade, technology, and fiscal reform, all pointing to the urgent need for stronger multilateralism and institutional renewal.
Technology—and especially artificial intelligence (AI)—dominated much of the discussion as both a potential catalyst for growth and a source of inequality. Nasdaq CEO Adena Friedman described AI as “the fastest-moving and most consequential technology in decades,” while Lagarde warned that its benefits must not be concentrated among a few. Harvard economist Gordon Hanson added that nations must also focus on building “microeconomic resilience,” ensuring workers and local communities can adapt to disruption, citing Costa Rica’s success with targeted innovation policies.
By the close of the meetings, optimism had cautiously returned. Leaders agreed that the next phase of global prosperity must be built on leadership, cooperation, and fairness—not inertia. As Georgieva concluded, “The global economy has weathered storms before. Now we must prepare not just to survive the next one, but to emerge stronger, fairer, and more united.”
source: the sun