The financial system must develop in a ‘great leap towards global justice’: Guterres
Speaking at the Paris Economic Forum, Mr Guterres said many African countries were spending more on debt repayments than on much-needed health, and that more than 50 countries were either in default or ” dangerous” close to him.
The UN leader called for it debt relief program that supports payment delays, longer loan terms and lower rates to make borrowing more affordable for poor countries, as well increase access to liquidity for developing countries through the International Monetary Fund’s Special Drawing Rights.
Mr. Guterres repeated his Urgent call to end fossil fuel subsidies and increase climate adaptation funding for vulnerable countries.
French President Emmanuel Macron addresses the Conference for a New Global Monetary Pact in Paris, France.
Steps to beat poverty, family
“Taken together, these steps will help beat poverty and hunger, promote growth and emerging economies, and support investments in health, education and climate action,” he said. that, stressing that the measures will make a “giant leap” towards global justice.
Doing nothing is simply not an option and at the halfway point to reach the 17 Sustainable Development Goals (SDGs) they “go further by the day”, he warned delegates to the Conference for the New Global Financial Pact.
He said it was clear that the international financial architecture built after World War II “has failed in its mission to provide a global security net for developing countries.”
“It clearly shows, even with some changes, the political and economic power of that time”, when three quarters of the modern countries were not around the table at Bretton Woods.
‘Old, inactive, unfair’
“Almost 80 years later, The world’s financial architecture is outdated, dysfunctional, and unjust. It is no longer capable of meeting the needs of the 21st century world: a pluralistic world characterized by deeply integrated economies and financial markets. But also marked by geopolitical tensions and development system risks.”
He warned the current global financial system is exacerbating inequalities, denying the poorest countries the credit and debt support they need and deserve.
Europeans receive 13 times more than Africans under current laws for Special Drawing Rights to weather recent conflicts, a situation that is “very immoral” said Mr. Guterres.
“The definition of a financial system that is not representative of the modern world is in danger of leading to its own division in a world where geopolitics itself is a factor for division.
There is no solution without correction
“There will be There is no serious solution to this crisis without serious reforms.”
He said that change would not be quick and that it was a question of power and political will.
“But as we work toward the deeper reforms needed, we can act quickly today to meet the urgent needs of developing and emerging economies.”
He said rich countries could establish “a real and time-efficient debt relief mechanism that supports payment suspensions, long loan terms and low rates, including for countries entering the center with significant disadvantages, namely in relation to the weather.”
Development and climate finance can be scaled up better, and development banks do too, allowing better coordination. He said Credit rating agencies have become “deeply flawed” and it contributed to many of the recent financial crises, rather than helping to prevent them.
He said taking immediate action towards wholesale reform could prevent hunger, “promote growth and emerging economies, and support investments in health, education and climate action.”
“We can take steps now – and take a giant leap towards global justice.”
The UN chief said he is aware of the scale of the challenges the world community is now facing.
‘Quick Action’
“The changing power and constraints on international cooperation in today’s world make problems more difficult to solve. But solutions are not possible. And we can start now.”
He said that the next two days of dialogue could bring results for millions of people in need.
“I urge you to have this meeting not a cri du cœur for a change, but a cri de guerre – a cry for urgent action“, the Secretary General told the conference.
“We are in a time of truth and accountability. Together, we can make it a time of hope. “
Top Paris School welcomes Guterres
The UN chief shared his perspective on the state of international affairs in general later in the French capital, receiving a warm welcome at the ceremony of the Paris School of International Affairs, Sciences Po.
In an address and taking questions from students, he presented ideas for changing multilateralism to make it fit for today’s global challenges. You can watch it all here on UN Web TV:
