Panetta pushes World Bank Group on reform agenda
Fabio Panetta, Governor of the Bank of Italy, addressed the 113th Meeting of the Development Committee in Washington, DC, on April 16, 2026. He emphasized the critical role of the World Bank Group in supporting vulnerable countries amid global uncertainty and called for accelerated reforms.
Reversing development setbacks
Ongoing conflicts and persistent geopolitical tensions are increasing global uncertainty, raising energy and food prices, and disrupting trade and supply chains.
Risks to global growth remain tilted to the downside amid tight financial conditions and higher inflation in several regions.
Developing countries are particularly exposed, with high debt and limited fiscal space, while the poorest are least able to absorb new shocks.
Years of progress in development and poverty reduction are at risk of reversal.
In this context, deeper engagement by the World Bank Group (WBG) in the most vulnerable countries is essential to help prevent crises and support stabilization, reconstruction, and transitions out of fragility.
The WBG's reform agenda is more important than ever, focusing on outcomes, integrated sector strategies, a stronger knowledge function, deeper partnerships, greater mobilization of private capital, internal efficiency gains, and robust risk management.
Unlocking private capital and growth
A robust business-enabling environment is crucial for the WBG's Jobs Strategy, requiring strong policy and institutional foundations for sustainable growth.
This includes clear, predictable rules, sound macroeconomic management, secure property rights, effective payment systems, and strong financial regulation to mobilize investment.
Access to reliable, affordable, and interoperable payment infrastructure is a prerequisite for firms, particularly SMEs, to access formal markets.
The International Finance Corporation (IFC) and Multilateral Investment Guarantee Agency (MIGA) are vital for strengthening this environment, creating investable opportunities, and reducing private investor risks through deeper upstream engagement and guarantees.
Italy's commitment, WBG's path
Italy's commitment to WBG projects in Africa and Ukraine is clear.
However, the WBG must credibly link its projects to measurable development outcomes, moving beyond just financial commitments.
Robust procurement reforms and a balanced shareholding framework are essential for empowering vulnerable client countries and ensuring lasting impact.