STATEMENT ON BEHALF OF THE GROUP OF 77 AND CHINA BY H.E. MIGUEL DíAZ-CANEL BERMúDEZ, PRESIDENT OF THE REPUBLIC OF CUBA, AT THE HIGH-LEVEL DIALOGUE ON FINANCING FOR DEVELOPMENT: INTERACTIVE ROUNDTABLE 1 - THEME "REFORMING THE INTERNATIONAL FINANCIAL ARCHITECTURE TO ACHIEVE THE SDGS" (New York, 20 September 2023)
It is my honor to deliver this statement on behalf of the G77 and China.
The High-Level Dialogue presents a valuable opportunity for a frank exchange to reflect on the progress made in implementing the Addis Ababa Action Agenda and to consider the most effective ways to close the widening gap in mobilizing the political will and resources required to achieve the Sustainable Development Goals by 2030.
The current financial architecture is not designed to provide the response that the countries of the South need. Its comprehensive reform is a long-standing demand that seeks to be faithful to the principles and purposes of the United Nations Charter and international law.
Hence, one-step towards that direction is to redesign and recapitalize the Multilateral Development Banks in order they can effectively assist developing countries as a whole.
But, even the refinacing of the MDB's along will not be enough to service the development needs of the 80% of the world's population who live in the Global South.
Immediate actions are required to address urgently the unsustainable external debt dragging most developing nations into an economic abys. An inclusive and effective solution, with the participation of all creditors is needed immediately to provide countries of the South and, in particular, middle-income countries with billons of dollars from their own domestic savings to invest in their development.
Additionally, the rechanneling of unutilized Special Drawing Rights (SDRs) to developing countries and a new allocation of SDRs cannot longer be delayed.
Thirdly, the reform of the current governance system crafted almost a century ago does not reflect the reality of today´s multilateral structures. This implies:
- Proceeding to reform to the governance structure of the IFIs, especially the IMF and the World Bank, the voting system based on economic or financig power is not anymore teenable.
- An improved global sovereign debt architecture with the meaningful participation of developing countries;
- Inclusive and effective platforms to design and discuss international tax rules and norms at the UN.
The international trade system also require urgent decisive action to undertake through reforms, which must include developed countries government ceasing to artifitially increasing the burden of exporting to those markets for developing countries through unjustificable and discriminatory tarifs; allowing for policy space for developing countries to build modern industries adding value to their extractive and agricultural facilities.
Finally, the Group expects that this dialogue will enable, urgently, the political will required to implement what we all know is needed to overcome one of the most complex crises humanity has seen in the modern history.