“There are a lot of things happening in the world and in geopolitics, like the wars we are seeing and what just happened recently in Israel and Gaza. In the end, when you put all this together, I think the impact on economic development is still more serious,” he said.
Risks tend to shift. “So I would be very careful to focus on one and ignore the others at this time.”
Banga said that although everything in the developed world seems to be going better than expected some time ago, “I think we are in a very dangerous situation.”
He stated that private sector investment is necessary in developing economies, but that political risks in some of these countries remain an obstacle.
“One trillion dollars is needed just for renewable energy in emerging markets. There is not enough money in government coffers, not even in multilateral development banks, we have to involve the private sector with its capital,” he said. “And that is the biggest task ahead of us.”