tv Treasury Secretary Yellen Discusses COVID-19 Economic Recovery CSPAN April 6, 2021 6:52pm-7:27pm EDT
america's cable television company. today we are brought to by these television companies who provide cspan2 to viewers as a public service. sputnik no treasury secretary janet yellen and international monetary fund managing director, they joint world bank president for a discussion on the global economic recovery from the covid-19 pandemic. this is just over half an hour. stomach it is a pleasure to be with imf director and with u.s. treasury secretary janet yellen to discuss the economic recovery and the kickoff of our spring meetings. the world of phases major challenges including covid climate change rising poverty
and inequality and growing fragility and violence in many countries. the inequality is most apparent in the direct effects of covid that hits informant workers and the vulnerable the most by the inequality extends will be on that to vaccinations. the concentration and wealth, the unequal impact of the fiscal stimulus and outside purchases and the end balance in debt creditor relationships perfectly for people need poorest countries the world bank group is leading forward as much as possible to face these challenges in response to covid-19 b took broad fast action and quickly achieved over 100 active operations of support for developing countries. commitments rose 65% in 2020 from 2019. on vaccines working closely with w.h.o. and unicef we have conducted over 100 capacity many even before vaccines were
available. we are now passing several specific country vaccine financing operations each week there our board. with already ten approved, ten more scheduled in april and around 30 more expected in may and june for a total of around $4 billion in 50 countries. there are major challenges for the countries in securing deliveries from kovacs and manufacturers. and we are working to support their efforts. many developing countries enter the pandemic with unsustainable debt levels. we have worked to achieve a debt suspension initiative in increase transparency in debt contracts. both steps are helping verb have dramatically increased our grants and loans to the dss i countries. our goal is to maximize resources available to people. we are working in close collaboration with the imf to
support the g20 implementation of the common framework. we are pushing forward together on chat in the world bank hopes to put in substantial fast disbursing resources. chad has a heavy burden of collateralized debt owed to a very narrow group of creditors presenting specific challenges. and finally, we are finalizing a new climate change action plan which includes a big step up in financing building on our record, climate financing over the past two years. it includes new analytical countries as part of the climate development program. we want to achieve as much impact as possible with the increased financing. our plan identifies key priorities for action with a focus on both adaptation and mitigation. it also includes a strong focus on a just transition
from coal. and we are working towards aligning our financial with the objectives of the paris agreement to conclude i have noted big challenges. we are working to bring together altogether to achieve what we call grid clean resilient and inclusive development. we will have separate events on that tomorrow, claimant transitions on thursday and vaccines on friday. and now, let me turn to secretary yellen. i am so pleased you are here, thank you very much for that. doctor yellen it has been a year since we were on a presentation together. they world had a very hard year. the united states under your leadership is having a big impact. could you go through, what is the u.s. doing to help the world recover economically from the crisis? suspect thanks so much jason is a pleasure to be with you. first of all domestically we
are focusing on the pandemic. and trying to promote vaccinations plus contact racing to get it under control. because we recognize that the united states into the world as a whole the pandemic really is what is going to call the shots in terms of how the economy does. that is first and foremost at home. and i think it is equally important to the entire globe. we are trying to support the most vulnerable people who typically are low income people and minorities in the united states. the same is true globally i think by those who work in the surface sector and minorities, boulder bowl people with the most impact and in terms of
economic impact. so we have many programs that are supporting them employment insurance program for rental assistance support for families that are burdened with women who are out of the workforce because children cannot go to school, trying to alert the schools as promptly as we can and support state and local governments. we have decided to go big because we think the risks are severe scarring if we allow there to be long term unemployment. we are projecting a pretty rapid, we deal with the pandemic we experience rapid recovery but we think will back to full employment next year. and once we are going to turn
to a longer-term agenda of investment. in infrastructure and rnd, and in people. that his globally. i think that what we are doing domestically is helpful to the entire global community. stronger growth in the u.s. is going to spill over positively to the entire global outlook. and we are going to be careful to learn lessons of the financial crisis. which is don't withdraw support too quickly. we would encourage all of those developed countries who have the capacity using fiscal policy and monetary policy to continue the support of global recovery for the sake of the growth in the entire global economy. sputnik managing director, you have been the forefront of
inequality and what if you give us some thoughts on that and what can the imf do to ease the inequality? stomach thank you so much for having me here. the banks with secretary yellen it up by. [inaudible] i am so grateful that you are focusing on this question of inequality. what did we receive today? the world's economies on a sounder footing. the recovery is progressing and actually actions taken by the united states to boost prospect for recovery in the u.s. are helping the whole world. we are upgrading our projections for the year. but, economic fortunes across countries are diverging dangerously. and this is why in this
meetings we are focusing on giving everyone a fair shot. a fair shot in the arm everywhere so we can bring the pandemic to a durable and to sustainable recovery. but also a fair shot for a chance at a better life for vulnerable people and vulnerable countries. it is a focus because if you do not do it, then we risk inequalities to deepen into whole societies in the whole growth. what does that mean for us? first and foremost we have stepped up significantly the provision of financial lifelines to vulnerable
countries. emerging markets, low income countries. the word bank and making sure those with limited physical space, no access to market are not left out from the recovery. we have done dramatically more just to give you one, 13 times more lending to low income countries that we were doing in an average year. and we are committed to continue to support them through the recovery. more importantly, we have included in virtually almost all of our programs quantitative targets for social spending to make sure that especially spending for education and health and social protection is in place.
also the department of women they're getting shots for this crisis. and then we target support to the most vulnerable parts of the economy at most vulnerable people. going forward and working with you working with our shareholders what we want to see a comprehensive program of support. you spoke about that. we cannot ignore sustainability in this crisis. provision of more concessional resources. and also seeking ways in which we can boost reserves especially for countries with no market access. we would bring the work together because in this crisis we have no way to get through without pulling together. two this is huge, a fair shot. madam secretary, do you
interact with the advanced economies a lot. what can everyone do working together to achieve and inclusive recovery? how do we make progress on those tough issues? stomach i think it is the responsibility of developed countries and fighting poverty globally and trying to close income gaps between rich and poor countries. we need to see that progress is not reversed because of the pandemic. and i think as we gather together to the spring meetings that is going to be our focus. we need to provide a package of resources that organizations can used to help
developing countries, low income countries. i hope we will make progress on approving an sdr allocation which i think would be a very important way to support the reserve needs globally. especially of low income countries. you mentioned tackling debt. i think that is an extremely important initiative concessional finance to the poorest countries. i hope this will be the focus and developed countries will band together to make sure we provide that support. sputnik absolutely. i like very much the way you said as the u.s. expands that has benefits for everyone. we can extend that as you're up expands that has been a bit in the developing world i think really welcomes that
coming out of the economies as it can be achieved. i was very happy to hear of stern a little bit we made to climate change. these are immense issues for the whole world each of us in various worlds are interacting. i went through our climate change action plan that we were just releasing. i wonder, how do you think about the climate change issues in the terms of macro economic challenges that you work on? and how can imf help on this area? >> it's a growing threat to economic and financial stability. and with the same token climate action offers the prospect for green growth and green jobs. critical for growth and
employment. what we have embraced as a latecomer in this conversation is to zero in on our strengths. what is it that we are uniquely positioned to help the world accelerate the transition to ukraine's economy? macro economic data and research, fiscal and monetary policies, crisis prevention, crisis response. so what we are doing, working very closely with the world bank and other organizations, for areas of stepping up our work. so it is at the heart of what we do. first, policy advice. we engage with all countries and what is known as article for consultations. and when we do so, we look at the mitigation and policies.
naturally we do more on mitigation and countries that hi we do more on countries that are more vulnerable. for example countries like china, the uk, there we look primarily at carbon intensity, but can be done with good policies. may go to the caribbean we focus on vulnerability. secondly, we are zeroing in on climate related financial stability risks. we have a big role to play. standardized reporting, testing and looking at the role of supervisory authority. would be together with the world bank the financial secretary assessment we are integrating two risks in this assessment. first data.
data is a story like nothing else. integrating carbon intensity and other climate data corporate -- what we are pursuing with other organizations. we are going to have a dashboard that will tell policymakers to seat one place the growth numbers there numbers. last but not least is capacity development. countries need to speed up their ability to integrate climate policy we are there for them. >> fabulous. janet, president biden has talked about the whole of the economy you've noted poor countries are not the ones admitting the greenhouse gases. we will have this challenge
that kristalina is talking about the diagnostic not being applied. where the areas we will have the most effect. how does the world better invest in this problem and solving it? >> obviously climate change is a global problem. and we are not going to really be able to deal with greenhouse gas emissions successfully unless countries like the united states act domestically and then foster the transfer of resources in this financing that is necessary for developing countries to be able to do so successfully. president biden is very focused on the u.s. claimant agenda. he is going to be proposing package of infrastructure and climate change investments.
to make sure we make our own domestic contributions to meeting the parish objectives. we look to you and working with you finance are developing countries both of your organizations have very important roles to play. kristalina was mentioning meet their climate goals the billability is critical part
>> to counter climate change plan when the key things are trying to do work with countries in d.c. and the national determine contributions that they make the paris agreement. in one of the within their worlds resources. what we have measurement on how to be bring in adaptations the biggest thing they need is the adaptation side braid this brings us, let's all discuss the importance of in the end of the private sector has to be fully engaged in this effort as well. and so that involves the financial side, the financial intermediaries and the risk the measurement of the risk.
and also the big dollar investments that are needed in cleaner sources of energy. one of the things we are trying to do it world back is on the electricity side that more access for people. but in a way that is greener. that is a big challenge from $8 standpoint. kristalina, thoughts on private sector and investment flows? suspect the way we think about these there has to be a framework that credibly directs private sector over medium long term. the way that can be done is first to provide forward guidance on price. at the front we concluded that what is today, $2 is multiple, multiple times lower we can go from here to here in one jump.
holt tells the private sector to that integrate secondly that is a big role to make it easier for the private sector. what is green infrastructure push i'm thrilled the united states is intending to pursue it. we calculated that over 50 years a green investment push in a modest amount boost to growth could many, many, many green jobs. sector defined its wiper just imagine an electric charging station easily accessible
everywhere the shift to green is going to be much faster. this is hugely important. private sector would step up with talking about reporting climate related good creating conditions for boosting green bonds because the private sector can seek good accounting for impact. it is so fantastic the ability to capture the meaning. you said something very important david before and that is transition. >> we are not going to win if there are losers unattended.
people in high carbon intensity sectors not get a helping hand. we should not expect the private sector to solve this out in time its own. so again very exciting. to see a country with so much leadership. >> that is fabulous pre-we have the benefit here in the world bank of having two imminent economists in the field of labor and climate and environment which is fabulous. puts together as we think about the just transition. let have coal miners who are dependent on coal. get the world knows a better future on that. so one of the things the world bank and bring onto that is
the nature of labor economics, incentives to help people move to new things. are there others? your thoughts on how does the world and make this transition? what is the investments what are the labor force implications of this? >> so again let me echo my agreement with many of the points kristalina made. i think to really make progress on climate private investments in things like charging stations electrical grid more appropriately these core investments are critical in order to provide the public infrastructure to support private investments, incentives were also looking at tax incentives to stimulate
private rmd. technological change will be important. we want to send it in a green direction. we see the potential for tax incentives for electric vehicles and the like. these are some ways in which we hope to stimulate private sector investments. still the opportunities present we think of this is something that's costly. but it's really important to emphasize addressing climate change is going to bring opportunities to the private sector for investment and for societies as a whole we ask about labor markets. it is going to bring good jobs. i think work the imf shows green investment tend to
stimulate more jobs. it is more labor-intensive than other forms of investments. so there are opportunities here. we have our agreement about information. it is very important, there is a huge and growing interest and sustainable investing and investments around the world for that to be possible they need information about companies and their exposure to climate risk. there is a global movement to try to provide some information that can be the basis for adjustment decisions. we're going to look carefully at that in the united states. but to try to promote that. examination of risks, the type of scenario analysis making sure that financial
institutions understand the risks of climate change to both physical, and environmental changes that will because by climate change. but also because of the potential for changes in massive prices. those are some planks of the work we would like to see both domestically and globally. >> one of the interesting questions of this area, our core economic questions which are how do you incentivize? how do you price some of the issues? how do you do that efficiently on a global basis and people have different policies? i think one of the things we are trying to do in our own work is think about the core market economic challenges what is the most effective way
what are available to deal the problems? one of the challenges has been some chunk of greenhouse gas emissions comes in the agriculture sector. how do we put all this together? suspect i know we are running towards the end of our conversation. other other topics you want to raise? i will turn to kristalina. >> the importance of us working together. it brings the world to concentrate on what we can achieve faster and more efficiently by working together. and i want to say two things. one, we are not giving enough credit to cooperation that is
already taken place in this crisis central banks and authorities have set of swiftly in a coordinated manner. we just calculated the ims if that did not happen on this scale and that degree of coordination newbie three times deeper. in other words they would have been lingering into a depression. that's a viola bringing everyone together cannot be overstated. my second point is to take at least one for the are scientists that have delivered vaccines in a record shop time. we owe it to them to make sure everybody gets an access to
vaccine. there's no more important economic policy today than doing it exactly as that. so let's use our coming together for building up the foundation of strong international corporations for what you started smart inclusive future for all of us. suspect that is huge both the cooperation and the technology the careful use of technology to make the advances pre-we could've spent the whole conversation on vaccines i am sure. janet closing? >> i think resilience is important. and to me because the global system should have learned we need to be better prepared for crises that may work for this
one. this may not be our last health crisis ever. and i hope we will learn we need to work together to be better prepared for future crises. we have seen, we in the united states have seen that our safety net was not what it should be to protect the most vulnerable citizens. we have had to shore it up in the series of ad hoc actions. i think making sure our safety nets work here and throughout the world for future crises. global supply chains, we saw weaknesses and problems and global sub light chains. i think thinking about we had sufficient supply chain but not for a very resilient supply chain that is an area i
think we should be trying to shore up. and finally i would say we did a lot after the financial crisis in 2008 and nine to shore up resilience of our core banking system. we should appreciate that we did not have the banking crisis or banking systems were able to support growth and credits. but some areas that sought the core banking system of non- have shown tremendous stress. we have more work to do to show more resilient financial system and all of these areas again globally we need to work together to cooperate as climate change to make progress. suspect that is a great conclusion so let's leave it there with resilience and the preparation for being stronger on the recovery and in the
next global expansion. fingers crossed, there is lots of work to be done but that is a great conclusion, thank you. thanks to you both. suspect the trial for derek chauvin the former minneapolis police officer charging the death of george floyd continues wednesday at 10:00 a.m. eastern. watch live coverage of the trial on cspan2, email@example.com or listen live on c-span radio app pretty few mr. live coverage watch 8:00 p.m. eastern on cspan2 anytime at c-span.org. government. created by america's cable television company. today were brought to by these television companies who provide cspan2 to viewers as a public service