The Philippines has called on international financial institutions (IFIs) to significantly increase their support for emerging markets and developing economies (EMDEs) as they navigate escalating global challenges and risks.
Speaking at the Intergovernmental Group of Twenty-Four (G-24) Ministers and Governors Meeting in Washington, D.C., on April 22, 2025, Department of Finance (DOF) International Finance Group (IFG) Undersecretary Joven Balbosa emphasized the critical role of institutions like the World Bank and the International Monetary Fund. “International financial institutions must be adequately equipped and are called upon to step in more decisively to support EMDEs through timely and accessible financing, technical assistance, knowledge support, and enhanced policy dialogue,” Undersecretary Balbosa stated at the meeting held at the IMF Headquarters.
Undersecretary Balbosa represented Finance Secretary Ralph G. Recto, a former chair of the G-24 Bureau from 2023 to 2024 and current non-executive member. The high-level meeting, themed “Enhancing Domestic Responsiveness in a Shock-Prone World,” brought together Finance Ministers and Central Bank Governors from G-24 member countries to discuss how IFIs can amplify their assistance to EMDEs.
In his address, Undersecretary Balbosa highlighted the intricate challenges confronting EMDEs, including the Philippines, in an increasingly interconnected global landscape marked by economic shocks, limited fiscal space, climate change, and escalating geopolitical and trade tensions. He further underscored that the deep interconnectedness of global trade necessitates careful consideration of potential unintended spillover effects from trade measures, given the integral role of many ASEAN economies in the global supply chain.
Beyond the need for international support, Undersecretary Balbosa stressed the importance of implementing robust fiscal and monetary policies tailored to the evolving dynamics of the global economy. Such policies, he argued, are crucial for ensuring long-term economic resilience and stability amidst global headwinds.
He also urged the World Bank and the IMF to continue their collaboration with other IFIs in supporting vulnerable nations and in developing innovative financing solutions for programs and projects that contribute to global growth and development.
World Bank Managing Director of Operations Anna Bjerde, in her opening remarks, informed the G-24 members about the Bank’s newly established Project Preparation Facility (PPF). This facility aims to assist developing countries in overcoming obstacles in the crucial early stages of project development and is available to clients of both the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA). “We think it will be very helpful in preparing good projects that are important for your development,” she noted. She also mentioned the Bank’s ongoing engagement in Memoranda of Understanding (MOUs) with other agencies to facilitate joint financing initiatives.
Recognizing the interconnected global environment, the World Bank has also transformed its financial model through the Framework for Financial Incentives (FFI). This framework incentivizes client countries to invest in projects that generate benefits extending beyond their national borders.
Meanwhile, IMF Managing Director Kristalina Georgieva acknowledged the Philippines’ insightful intervention regarding spillover effects and the necessary policy responses. “I can assure you, we take our responsibility to buffer countries very seriously,” she stated. “Before we started this meeting at the Fund, we had a review of all countries’ degrees of vulnerability. What can we do? And I know the bank does the same thing, and together, we actually can provide some assurances that countries are not on their own in this more difficult time.”
During the meeting, the G-24 members endorsed the G-24 Communiqué, a formal statement outlining the group’s stance on key issues. These include promoting innovative financial instruments, advancing climate action, encouraging effective domestic resource mobilization for sustainable development financing, and enhancing multilateral cooperation on tax reforms and trade policies.
