In a week's time, we'll all be talking about the IMF, World Bank

The risks in the world economy are increasing with every passing day. The monetary policies implemented by developed economies both make their own affairs difficult and force the rest of the world to grapple with the prospect of recession. In such an environment, the IMF-World Bank annual meetings will be held next week. Prior to the meeting, statements keep coming one after another.

In her speech at Georgetown University before the IMF-World Bank Annual Meetings to be held next week, International Monetary Fund (IMF) President Kristalina Georgieva emphasized that recession risks have increased. Stating that the global economic growth forecast will be lowered for the next year, Georgieva said that the risks of recession have increased and that they predict that countries that make up about one-third of the world economy will contract for at least two consecutive quarters this year or the next.

Referring to high energy and food prices, Georgieva pointed out that ongoing supply shortages curb growth and that the world's largest economies are slowing down more and more. Earlier in the week, during her visit to Saudi Arabia, Georgieva urged the Fed to be more careful about interest rate hikes.

Similarly, the United Nations Conference on Trade and Development (UNCTAD) stated in its latest report that any measures aimed at bringing prices down with higher interest rates without creating a recession are a "careless gamble".

While the IMF and World Bank continued to warn against the Fed's policies, this time U.S. Treasury Secretary Janet Yellen called for multilateral development banks such as the World Bank to renew their business models.

"There is a large pool of global savings. But flow to developing countries is limited," Yellen said. She said that these structures should also improve themselves so that multilateral development banks can direct these savings to developing economies.

Frankly, I do not expect any remarkable results from these meetings. Because the basis of the current problems is the monetary and fiscal policies imposed by these institutions on the countries themselves. Both the IMF and the World Bank are the byproducts of the Bretton Woods Conference in 1944 when the United States made its currency the reserve currency.

In other words, as Einstein said, “We can't solve problems by using the same kind of thinking we used when we created them."