UN Secretary-General António Guterres stated that the global financial system has become unfair, and it has failed in protecting the poorest countries. It is no longer capable of responding to current challenges.
During the “New Global Financing Charter” summit in Paris on Thursday, Guterres emphasized that there need to be “radical reforms in the global financial system.” Particularly since this system has failed to provide a safety net for developing countries.
Guterres also pointed out that international financial institutions have limited capacity and are unable to fulfill their roles.
At the summit held in Paris to discuss modifications to the global financial system, Guterres highlighted that Europe received 13 times more loans from the International Monetary Fund (IMF) than Africa.
He further proposed an annual provision of $50 billion to achieve the Sustainable Development Goals (SDGs). Guterres called for providing loans with low interest rates to poor and developing countries.
Presidents, finance ministers, and activists from all around the world have gathered in Paris this week to discuss ways of reforming global development banks, such as the International Monetary Fund (IMF) and the World Bank, and to help them tackle a world facing the climate change crisis.
