UN chief: 20 leading economies must help developing nations
The United Nations chief has sent a letter to finance ministers and central bankers from the world’s 20 leading economies urging that they change course and steer a global economic recovery including developing countries that have been hardest hit by the COVID-19 pandemic, the impact of the war in Ukraine and escalating climate emergencies
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.Secretary-General Antonio Guterres sent a letter to finance ministers and central bankers from the world’s 20 leading economies Thursday urging they change course and steer a global economic recovery that includes developing countries hit hard by the COVID-19 pandemic, the impact of the war in Ukraine and escalating climate emergencies.
The U.N. chief said in the letter ahead of the Group of 20 summit in the Indonesian resort of Bali next month that these world events along with the rising cost of living, tightening financial conditions, and unsustainable debt burdens “are wreaking havoc on economies across the globe.”
“The impact of these compounding shocks on developing countries is further exacerbated by an unfair global financial system that relies on short-term cost-benefit analyses and privileges the rich over the poor,” he said.
Guterres said immediate efforts must be made “to end the cost-of-living emergency and increase liquidity in developing countries.”
Urging the G20 to abandon the status quo, he said the U.N. system and its partners have proposed a “stimulus” to address deteriorating market conditions and accelerate progress toward U.N. development goals for 2030 that include ending extreme poverty, ensuring a quality education for all children, and achieving gender equality.
The stimulus calls for “a massive increase in public sector commitments towards development, humanitarian and climate mitigation and adaptation by just 2% of global gross domestic product (GDP),” the secretary-general said.
It consists of five recommendations: immediately enhancing debt relief for vulnerable countries, leveraging better lending from development banks, involving private bondholders and sovereign debtors in debt relief efforts, bolstering liquidity for vulnerable countries through enhanced use of special drawing rights, and aligning financial flows with the U.N. goals and 2015 Paris agreement on climate change, he said.
“Now more than ever,” Guterres said, “the leadership of the G20is needed to steer the world out of its deepest crisis.”