Finance and foreign ministers have called for the reforming of the international financial system to improve the prospects of developing countries at a just-concluded United Nations (UN) Member States meeting in Addis Ababa, Ethiopia.
“The ministers, experts and other stakeholders that gathered here in Addis Ababa made clear that we cannot continue with business as usual and must dramatically reshape the international financial system to ensure investment where it is most needed,” Li Junhua, the Under-Secretary-General of the United Nations Department of Economic and Social Affairs (UN DESA), and Secretary-General of the FfD4 conference, said.
Global shocks such as the COVID-19 pandemic, geopolitical conflicts, and economic instability have caused an increase in the financing gap for developing countries to US$ 4 trillion annually from US$ 2.5 trillion in 2015.
The officials in Addis Ababa add their voices to a campaign spear-headed by Kenyan President William Ruto to reform the global financial architecture to create a system of equals. The officials pushed for radical reform to fix the structural flaws in the international finance and tax architecture.
“We Need a Financial Architecture Where Power is Not in the Hands of the Few,” Kenyan President Tells World Bank, IMF
President of Kenya, said “the new financial architecture must be of equals that should neither be controlled by the World Bank nor the International Monetary
— Aikon MM-Ogedengbe (@Aikoges) September 20, 2023
Ministers and global experts unveiled proposals for reforming the rules and governance of international taxation, and for addressing countries facing debt crises, including through new international mechanisms to resolve situations of sovereign debt default.
“The international financial architecture created nearly 80 years ago needs to be reformed to respond to the most pressing challenges of African countries in a more effective and inclusive manner,” said Mr. Claver Gatete, Executive Secretary of the United Nations Economic Commission for Africa.
“African countries are taking a leadership role in pressing for changes to global tax and financial systems, and they are clear that the international system needs to better support their sustainable development aspirations.”
The meeting brought together representatives of at least 103 countries, including high-level representatives, as well as representatives of multilateral development banks, United Nations system entities, and other inter-governmental organizations, the private sector, and non-governmental organizations.
Almost 800 participants discussed the full range of financing issues, including debt, taxation, trade, private finance, development cooperation, technology and data.
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