Sierra Leone: Aslı Şenkal, an economist in the Macroeconomics, Trade, and Investment Global Practice at the World Bank has reiterated the importance of private investment and advised that governments should enact policy reforms to spur private investment—including Foreign Direct Investment (FDI).
She was responding to questions during a live chat at an event to discuss strategies and polices that would build the foundations for economic recovery, which is based on an interlinked approach Green, Resilient, and Inclusive Development, namely GRID.
Şenkal said that there’s an important role for both the public and the private sector, as well as for close international coordination. “Governments can help to lay the foundations, ensuring financing of key infrastructure, but also through enacting appropriate legislation and creating space for the private sector wherever possible.”
She emphasised that “Private investment will be key in addressing climate change challenges, debt issues, and inequality – each of which require innovation, which the private sector can bring.”
She continued however, that Government and the private sector will need to cooperate in many sectors such as energy, considering joint public-private initiatives with fair burden sharing and good governance.
The World Bank Group, she added will continue to be a key champion in helping to address climate change, debt, and inequality bringing to the table public and private sector solutions, analytics, financial support, and convening power.
As prices of everyday use items have shown a tremendous increase, Şenkal acknowledge that indeed the global food prices, as measured by the World Bank food price index, rose 14 percent over the course of last year.
And that, phone surveys conducted periodically by the World Bank in 45 countries also show significant percentages of people running out of food or reducing their consumption pointing out to concerns regarding health and food security of millions.
“Free trade for food and essential goods is key to avoid shortages and price surges at a global level. At the country level, ensuring food security requires improving social safety nets that can expand during downturns to cover the vulnerable populations from potential price surges to cushion poverty impacts. Over the medium term, it is important to invest in client resilient agriculture to address food insecurity and climate change” she advised.
While noting that, food insecurity and hunger was on the rise even before the pandemic. COVID-19 pandemic and the related economic crisis, however, exacerbated food insecurity even further through reduced incomes and disrupted supply chains.
At the country level, the World Bank Group is working with governments and international partners to closely monitor domestic food and agricultural supply chains, track how the loss of employment and income is impacting people’s ability to buy food, and ensure that food systems continue to function despite COVID-19 challenges. Indeed, better utilization of resources, land and water is crucial to address health security.
In Sierra Leone, emergency financing under the ongoing Smallholder Commercialization and Agribusiness Development Project will support government COVID-19 response initiatives with inputs, land mechanization services, as well as extension services to support rice farmers. The World Bank-financed Social Safety Net Project is also scaling up its cash transfer system to provide support to the most vulnerable households.
ZIJ/13/04/2021