Student Voices: Defining Resilience in Today’s Global Economy

By Maddie Sachtler MPP’26

Every student in international development has heard of the International Monetary Fund (IMF). Often described as the global economy’s “crisis doctor,” the IMF steps in when countries face financial collapse, mounting debt, and shrinking fiscal space. I recently had the opportunity to listen to a conversation between Dr. Eddy Malesky, director of the Duke Center for International Development, and Dr. Gita Gopinath, former First Deputy Managing Director of the IMF. Dr. Gopinath offered a window into her perspective on how the institution sees its role in an increasingly fragile and complex global economy, one marked by debt distress, geopolitical tensions, and shifting development priorities. These challenges have been on my mind every single day, and I was genuinely hoping her perspective might offer some clarity. 

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A central theme of the discussion was economic resilience as the future of international development architecture. Dr. Gopinath started by pointing to a reality that many of us in the development space have witnessed: Western countries are facing intense budget pressures at home, constraining both their ability and willingness to sustain large-scale international aid commitments. We are already seeing the effects of this shift, starting with the dismembering of USAID following with reductions in development aid budgets across countries such as Germany, the United Kingdom, France, and the Netherlands. This has been a huge topic of conversation recently among upcoming graduating MPPs, as this has caused many of our traditional job prospects to disappear. 

The discussion shifted to what we can do to help countries be resilient enough to absorb geopolitical shocks and continue to support its people in the face of global crisis. This exact topic is something I have been exploring in my own work. I was delighted when the conversation turned to energy security as a growing global priority. A student bravely highlighted the conflict with Iran and the current oil supply disruptions and Dr. Gopinath emphasized that energy security has become more than an environmental issue, it has become an economic one. This progressed into the just energy transition, and how it is as much about building economic resilience as it is about reducing carbon emissions, specifically in the sense of protecting countries from volatile global energy markets. For countries that are reluctant to make the transition away from oil, a push toward renewable energy as a method to enhance macroeconomic resilience may offer a compelling path to reduce our global carbon footprint. An unintentional light at the end of the tunnel! 

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The most important part of this discussion was when Dr. Gopinath emphasized that resilience doesn’t happen without ownership. I screamed from the rooftop when she said this! It was refreshing to hear her stress not just the role of economic reform, but the importance of political commitment behind it. Governments must genuinely believe in the reforms as strategies that serve their own national interests, which in turn makes them more accountable to their commitments to their people. This is where I began to see a distinction between the IMF and the World Bank. The IMF’s approach to resilience, at least in this context, places a stronger emphasis on accountability and domestic ownership. In doing so, it has the potential to cultivate stronger leadership, encouraging governments to take responsibility for difficult but necessary decisions.