## Managing Director Kristalina Georgieva’s Remarks at the 2020 Paris Peace Forum

_IMF News, November 12, 2020_

## Source details

**Canonical URL:** [Managing Director Kristalina Georgieva’s Remarks at the 2020 Paris Peace Forum](https://www.imf.org/en/news/articles/2020/11/12/sp111220-md-remarks-at-paris-peace-forum)

## Other formats

- [Markdown version](/en/news/articles/2020/11/12/sp111220-md-remarks-at-paris-peace-forum/index.md)
- [Structured JSON version](/en/news/articles/2020/11/12/sp111220-md-remarks-at-paris-peace-forum/index.json)
- [Bundle manifest](/en/news/articles/2020/11/12/sp111220-md-remarks-at-paris-peace-forum/bundle-manifest.json)

## Bibliographic details
- Published: November 12, 2020

---

### Context and framing
- Occasion: Paris Peace Forum 2020; remarks delivered as the year "of the worst pandemic in a century" and "the worst recession since the Great Depression."
- Emphasis on collective action: "being in this together" as the determinant of 2021 outcomes.
- Noted cooperative signals from 2020: synchronized government and central bank responses, vaccine research momentum, and the IMF gaining a new member, Andorra, becoming the 190th member of the Fund.

### Assessment of 2020 policy response and economic environment
- Fiscal and monetary response in 2020:
  - "$12 trillion in fiscal action and massive liquidity support from central banks."
- Financial system resilience: post-Global Financial Crisis reforms left the banking system "more resilient" and contributed to financial stability "even in the midst of this severe crisis."
- Technology and vaccines: "incredible momentum in vaccine research" and the digital economy benefiting from the crisis.

### Three-point agenda for 2021 (main policy recommendations)
- First: Strong public investment push
  - Rationale: lift up growth when there is "ample idle capacity and interest rates are very low."
  - Objectives: address the climate crisis, promote digitalization, and create a "more equitable world."
  - Coordination benefit: "If G20 countries move together, invest together at the same time rather than in an unsynchronized manner, we estimate that they could spend a third less to achieve the same outcome than if they acted alone."
  - Outcome focus: build impetus for growth and jobs more effectively by working together.

- Second: Support for the developing world
  - Priorities: ensure liquidity and investment in developing countries to avoid deepening inequality and to prevent losses in the fight against poverty.
  - IMF commitment: "vouch for the IMF’s commitment to be part of this boost to high-quality, green public investment."
  - Role of SDRs: "make the best use of the SDRs so we can help the developing world make progress."

- Third: Intergenerational responsibility and fiscal sustainability
  - Avoid passing "unsustainable debt" to future generations.
  - Priorities: high-quality public investment that supports fiscal sustainability, early debt treatment where restructuring is needed, and improving tax systems to be "fit for the 21st century."
  - Taxation challenge: concern that the digital economy benefits from the crisis while there is no agreement on "fair and global taxation of these activities" to share benefits and burdens.

### Scenarios and normative contrast
- Two possible 2021 trajectories:
  - A year that becomes "yet another ‘Tale of Two Cities’—more inequality within countries, across countries, across generations."
  - A year in which "we come together to build a more prosperous, more equitable, more sustainable world."

### Closing observation
- Overall judgment: the magnitude of the challenge is great, but cooperative spirit witnessed at the meeting is strong; anticipation of celebrating collective action at next year's Paris Peace Forum.
- Closing words: "Merci, Monsieur le Président."

*Managing Director Kristalina Georgieva’s Remarks at the 2020 Paris Peace Forum, November 12, 2020.*

---


## References

- [https://www.imf.org/en/about/senior-officials/bios/kristalina-georgieva](https://www.imf.org/en/about/senior-officials/bios/kristalina-georgieva)
- [Managing Director Kristalina Georgieva’s Remarks at the Finance in Common Summit, November 12, 2020](https://www.imf.org/en/News/Articles/2020/11/12/sp111220-md-remarks-at-finance-in-common-summit-meeting)
- [Principality of Andorra and the IMF](https://www.imf.org/en/countries/and)
- [Speeches](https://www.imf.org/en/news/searchnews)
- [PRESS CENTER](http://presscenter.imf.org/)
- [https://www.imf.org/en/home](https://www.imf.org/en/home)

_Source: https://www.imf.org/en/news/articles/2020/11/12/sp111220-md-remarks-at-paris-peace-forum_