Economy

At Paris New Global Financial Pact Summit: UN SG calls for global financial architecture reforms.

The United Nations Secretary General, Antonio Guterres, has called for the reform of global financial architecture after declaring it to have failed in its mission to provide developing countries with safety net.

The UN scribe was speaking at the opening of the Paris Summit of New Global Financial Pact convened by French President, Emmanuel Macron.

The Paris confab taking place at the Palais Brongniart in Paris will close today with conclusions of the summit discussions and major decisions announced. The opening yesterday, was attended by over 40 heads of state from the over 300 participants in attendance.

The summit is attended by world leaders including the President of the Republic, Paul Biya.

In his opening address, Antonio Guterres, outlined some of the challenges facing developing countries and said more than 50 nations were now in or near debt default.

According to the UN Scribe the global financial system, conceived at the end of World War II, has failed to meet modern challenges and now perpetuating even worsened inequalities.

“Nearly 80 years later, the global financial architecture is outdated, dysfunctional, and unjust. It is no longer capable of meeting the needs of the 21st century world,” he said.

“We can take steps right now and take a giant leap towards global justice,” the UN chief implored further, adding that he has proposed a $500 billion a year stimulus for investments in sustainable development and climate action.

Moreover, the Ethiopian Prime Minister, Abiy Ahmed, said “We need a robust and predictable financial safety net,” as he called for a boost to below-market financing and more grants.

In his key note address, French President called for a joint action on climate change and poverty.

To President Macron, no country should have to choose between reducing poverty and protecting the planet. He further called for a substantial increase in public and private funding to tackle rising inequality.

“Without the private sector, we will not be able to meet most of this challenge,” he cautioned.

President Biya is attending the summit, accompanied by an official delegation including Minister of External Relations, Mbella Mbella; Minister of Finance, Louis Paul Motaze; and other members of government.