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From Uche Usim, Washington DC
As the world battles fragmentation and distrust, key economic thinkers and policymakers, yesterday, unanimously agreed that the unsettled global economy should be urgently rebuilt on stronger, fairer and more innovative foundations.
Their position was amplified at the IMF–World Bank Annual Meetings, where the IMF Managing Director, Kristalina Georgieva, appealed for decisive domestic reforms and a renewed commitment to international cooperation.
According to her, the private sector handles uncertainty better, urging governments across the globe to “do some regulatory house cleaning” to unleash entrepreneurship and innovation.
Unveiling her Global Policy Agenda, Georgieva said the IMF’s focus is to help countries navigate a turbulent era by empowering private enterprise, rebuilding fiscal and monetary strength and tackling deepening global imbalances.
“Countries must rebuild fiscal space and reduce debt. That means smart budget choices, more domestic revenue and renewed discipline”, the IMF boss said.
She called on surplus economies like China to stimulate local demand and on deficit countries such as the United States to curb excessive fiscal spending and boost savings.
“With change comes opportunity. At the IMF, we will continue to help countries pursue the opportunities in front of them”, she said.
Her optimism set the stage for a spirited debate among global leaders and thinkers who agreed that while the world has shown resilience in the face of multiple shocks, the next phase requires deeper innovation and courage.
“Good policies pay off. But good intentions alone are no longer enough.”
European Central Bank President, Christine Lagarde, captured the new mood of economic realism. “We had to navigate a situation where a lot of what was happening was not normal.
“That certainly challenged our dependence on models and pushed us to use more judgment”, she said.
For Lagarde, this shift is not just about policy; it’s about agility, the ability of institutions to adapt as fast as the world changes.
Singapore’s President, Tharman Shanmugaratnam, agreed, arguing that agility, not size, will define the next phase of global competitiveness.
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“Large countries must start thinking a little more like small countries, always alert, never complacent,” he said.
His words drew applause from an audience that understood the growing strain on big economies burdened by bureaucracy and polarization.
Shanmugaratnam’s tone, however, turned somber as he warned that “economic nationalism is resurgent and from all indications, it will run a long course.”
International collaboration, he said, is “at its weakest in 80 years,” even though the world needs it most. Yet, he refused to accept fatalism.
“The interaction and competition between the U.S. and China is not a threat to be eliminated, but an opportunity to be managed,” he said. “This is no time for timidity”, he submitted.
The call for renewed cooperation resonated across the event, especially as leaders grappled with how to balance sovereignty with shared responsibility. Many pointed to the need for WTO reforms, new frameworks for AI safety, and broader global inclusion in setting economic rules.
Technology, particularly artificial intelligence, emerged as both promise and peril.
Nasdaq Chief Executive Officer, Adena Friedman, called AI “the fastest-moving and most consequential technology in decades,” already transforming productivity and reshaping capital markets.
But Lagarde cautioned: “We must not create a universe where a few benefit from AI and the rest are left behind. Its benefits must be shared, and its risks must be managed.”
The debate extended beyond economics to the social fabric of globalization. Harvard economist Gordon Hanson observed that while global macroeconomic resilience has improved, “microeconomic resilience”, how communities and workers adapt, still lags.
“Costa Rica’s experience with Intel shows how targeted policy can turn disruption into renewal,” he said, contrasting it with the slower adaptation in the U.S. manufacturing sector.
Throughout the meetings, one thread connected the diverse voices: the recognition that the next phase of global prosperity will not be driven by luck or inertia, but by leadership and cooperation. From fiscal reforms to AI governance, the message was clear, nations must think beyond borders and plan beyond electoral cycles.
By the close of the meetings, optimism had returned, not naïve, but earned.
“The global economy has weathered storms before. Now we must prepare not just to survive the next one, but to emerge stronger, fairer, and more united”, the IMF said in her final remarks.
