United Nations: The Secretary General of the United Nations and the president of the General Assembly of the United Nations on Monday led a clear call for urgent reforms in the global financial system, especially on how to deal with debt on behalf of billions of citizens suffering in developing countries. . .
Addressing a high-level meeting of the 193-member parliament, UN chief Antonio Guterres highlighted the impact of debt on developing countries.
He noted that the burden of servicing foreign debt has left many countries with little to invest in their people.
Global public debt will reach $313 trillion by 2023, according to the United Nations, a situation that is of particular concern in developing countries.
In 25 developing countries, a fifth of tax revenue is diverted to external debt service, while high debt costs mean that countries with around 3.3 billion people – 40 percent of the world’s population – pay more for interest than for health education initiatives.
Founded by General Assembly President Dennis Francis, the debate on credit sustainability and socio-economic equity for all marked the first high-level discussion as part of the world body’s inaugural Sustainability Week.
Other highlights include separate discussions on sustainable transport, tourism and energy.
Also speaking at the General Assembly, Francis, the president of the 78th session of the organization, drew attention to the growing inequality between rich and poor countries.
“It is estimated that 600 million people will be poor by 2030 – which represents a ‘glacial rate’ of growth that is below our SDG targets,” he said, adding that 10 percent of the world’s population owns 76 percent. global wealth.
With the world on track to see its first trillionaire by 2030, it will take another 229 years to eradicate poverty.
It highlights the impact of such inequalities on youth, women, the disabled and those living in rural areas.
“If nothing is done to fix this situation, they will really be left behind, enjoying the fruits of development and being ignored. “Of course, this is neither acceptable nor sustainable,” he said.
Secretary-General Guterres said that a lifeline is needed for developing countries to get out of the “spiral of debt”.
He said the SDG Stimulus program, which he proposed last February, must now be “implemented.”
The Stimulus aims to attract $500 billion in annual additional financing from the world’s most developed countries to meet the 2030 Agenda for Sustainable Development.
“First, we must significantly expand available and long-term financing through multilateral development banks (MDBs),” he said.
At the same time, the global financial architecture needs “major reform,” especially in its approach to debt.
This includes increasing debt transparency, increasing lending in local currency and developing new credit instruments.
“Most importantly, we need to increase the representation of developing countries throughout the system and in every decision that is made. They need a seat at the table. They deserve a seat at the table,” he said.
