May 30, 2024
World Economy

Green subsidies making poor nations poorer, World Bank warns

Industrial policies that pump green subsidies worth billions into advanced economies risk widening inequalities between rich and poor countries, the World Bank has said as it warned of a “great reversal” in the growth prospects of the most vulnerable nations.

Ayhan Kose, deputy chief economist at the World Bank, told The Times that the 75 poorest countries, which account for a quarter of the global population, were now becoming worse off relative to the world economy for the first time since the 1990s.

“The process of convergence [between rich and poorer countries] has basically stopped. There is now divergence … and the big problem is that the poor economies are becoming poorer,” Kose said.

He warned that the vogue for activist industrial policies in the

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