Speaking at the Fiscal Summit in Paris, Mr. Guterres said many African countries are spending more on debt repayment than on much-needed healthcare, and more than 50 countries have failed. debt or at a “dangerous” level.
The head of the United Nations called for debt relief mechanism payment suspension support, longer loan terms and lower interest rates to make loans more affordable for poorer countries, as well as increased access to liquidity to developing countries through the International Monetary Fund’s Special Drawing Rights.
Mr. Guterres also repeated Urgent call to end fossil fuel subsidies and increase climate adaptation funding for vulnerable countries.
French President Emmanuel Macron speaks at the Summit on the New Global Financial Compact in Paris, France.
Step by step hunger eradication and poverty alleviation
Taken together, these steps will help alleviate poverty, support developing and emerging economies, and support investments in health, education and action against climate change, he said. climate change, stressing that these measures would represent a “leap” towards global justice.
Doing nothing is simply not an option and half way to 17th place Sustainable development goals (SDGs) they are “going further and further by the day,” he warned delegates to the Summit on the New Global Financial Compact.
It is clear that the international financial structure built after World War II, he said, “has failed in its mission to provide a global safety net for developing countries.
“It basically reflects, even with some changes, the political and economic power dynamics of the time,” when three-quarters of nations today are not sitting around the table at Bretton Woods.
‘Outdated, dysfunctional, unfair’
“Nearly 80 years later, The global financial structure is outdated, dysfunctional and unfair. It is no longer able to meet the needs of the 21st century world: a multipolar world characterized by deeply integrated economies and financial markets. But also marked by growing geopolitical tensions and systemic risks.”
He warned that the current global financial system exacerbates inequality, denying the credit and debt support the poorest countries need and deserve.
European citizens have received almost 13 times more than African citizens under the current rules on Special Drawing Rights to weather recent crises, a situation”deeply immoralMr. Guterres said.
“A financial structure that is not representative of the world today runs the risk of fragmenting itself in a world where geopolitics is itself a driver of fragmentation.
There is no solution without reform
“Will have There is no serious solution to this crisis without serious reforms.”
He said change would not happen quickly and was a matter of power and political will.
“But as we work for the profound reforms needed, we can act urgently today to meet the urgent needs of developing and emerging economies.”
He said wealthier countries could establish “a truly efficient and time-efficient debt forgiveness mechanism that supports payment suspensions, longer loan terms and lower interest rates, including for middle-income countries with specific vulnerabilities, particularly with regard to climate.”
Development and climate financing could be better capitalized, and development banks reformed, allowing for better coordination. He say credit rating agencies have become “deeply biased” and has contributed to many of the recent financial crises, rather than helping to avoid them.
He said immediate action on wholesale reform could curb hunger, “uplift developing and emerging economies, and support investment in health, education and action.” climate.”
“We can take steps now – and take a giant leap towards universal justice.”
The head of the United Nations said he was aware of the scale of the challenges the international community is currently facing.
‘Urgent action’
“Power dynamics and constraints on global cooperation in today’s world make problems more difficult to solve. But The solution is not impossible. And we can start now.”
He said the following two days of discussions could yield results for millions of people in need.
“I suggest you hold this meeting not just one cri du cœur to change, but a cri de guerre – a rallying cry for urgent action”, said the Secretary-General at the Summit.
“We are at a time of truth and calculation. Together, we can make it a moment of hope.”
Leading Paris School Welcomes Guterres
The head of the United Nations shared his views on the state of world affairs in general at the end of the day in the French capital, receiving a warm welcome at the renowned School of International Relations in Paris, Science Po. .
In a keynote address and questions from students, he presented ideas for transforming multilateralism to make it relevant to today’s global challenges. You can watch them all here on UN Web TV:
