Exclusive | Debt, inflation, and climate risks — World Bank’s Anna Bjerde on her biggest concerns

As the world grapples with economic uncertainty and rising debt levels, Anna Bjerde, Managing Director of Operations at the World Bank, has called for greater financial efficiency and debt transparency to help vulnerable nations sustain development.

Speaking exclusively to CNBC-TV18, she highlighted the pressing challenges of fundraising, donor priorities, and inflation volatility in today’s economic landscape.

“We have to be realistic and recognise there are many fundraising challenges in today’s world. Countries are readjusting fiscally, and donors that have traditionally supported development are now looking at more immediate priorities,” Bjerde said, emphasising the shift in global financial commitments.

With heightened indebtedness becoming a major concern, she pointed out that many African nations with high debt-to-GDP ratios are finding it increasingly difficult to borrow, creating a vicious cycle of financial distress.

She stressed the importance of leveraging every dollar multiple times to maximise impact, stating, “Leverage is the name of the game when you have scarce resources.”

Bjerde also raised concerns about climate change exacerbating financial pressures, with nations facing floods followed by droughts, adding further strain on economies. Meanwhile, inflation remains a significant threat, disproportionately affecting the poor.

“Anytime inflation goes up, it hurts the poorest the most, and that worries us. We have to ensure those getting out of poverty don’t fall back into it,” she warned.

As countries navigate volatile economic conditions, Bjerde underscored the need for debt transparency and responsible fiscal management, ensuring nations remain on a sustainable growth path while adapting to evolving global priorities.