The global financial architecture, designed in 1945, is faltering under severe stress, argues UN Secretary-General António Guterres in a 2023 policy brief. He highlights that unsustainable debt levels are crippling many poor nations, hindering their investment in crucial development areas like social protection and healthcare. This crisis adds urgency to the reforms needed to achieve the Sustainable Development Goals (SDGs) by 2030. Established in 2015, the SDGs have seen minimal progress, with only 15% of targets met by 2023.
Guterres calls for a “new Bretton Woods moment,” referring to the post-World War II agreement that created the IMF and World Bank. Unlike the original 44 delegations, today’s IMF includes 190 nations, yet developed countries retain disproportionate power. Guterres asserts that the system is now obsolete, given current global challenges like climate change, inequality, and geopolitical shifts. His proposals include increasing financial support to eradicate poverty, democratizing IMF and World Bank decision-making, and establishing a new global body to coordinate economic decisions, akin to an “Economic Security Council.”
These ideas will be central to discussions at the Summit of the Future, set for late September at UN Headquarters. The summit will also focus on the “Pact for the Future,” a document committing UN Member States to use every available tool to address global issues. The Pact emphasizes bold actions to end hunger and poverty, reduce inequalities, and tackle climate change. This summit aims to generate momentum for the International Conference on Financing for Development (FfD4), scheduled for June 2025 in Spain.
Overall, Guterres calls for urgent reforms to modernize international financial structures and effectively pursue sustainable development goals.
Original Story https://news.un.org/feed/view/en/story/2024/09/1154321
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