The G20 New Delhi leaders’ declaration and its focus on multilateralism offers hope for developing countries that international financial institutions will be reformed and that more cognisance will be paid to global debt vulnerabilities.
Leaders of the world’s leading economies met in New Delhi at the weekend to discuss a range of issues from the green development pact for a sustainable future to accelerating progress on the UN Sustainable Development Goals.
These are crucial discussions for a new world order and those countries that represent the developing or emerging world stressed that there must be more balance, especially with how decisions are taken by international financial institutions, which historically have operated in a manner that benefited unilateral decision-making and developed nations.
The declaration states: “We are working to deliver better, bigger and more effective MDBs (Multilateral Development Banks) by enhancing operating models, improving responsiveness and accessibility, and increasing financing capacity to maximise development impact.
“Stronger MDBs will be important to our efforts to mobilise financing from all sources for a quantum jump from billions to trillions of dollars for development.”
On the back of a successful BRICS summit held in Sandton recently, the G20 declaration also recognises that developing countries must have a role to play in shaping the future through industrialisation, innovation and technology. Financing mechanisms that are balanced and fair are crucial to the growth of these economies and the hopes and aspirations of their citizens.
The declaration underscores the need for enhancing representation and elevating the voices of developing countries in decision-making in international economic and financial institutions to make for more effective, credible, accountable and legitimate institutions.
Like the BRICS Summit declaration, the G20 reiterated its commitment to a strong, quota-based and adequately resourced International Monetary Fund (IMF) with the bloc committed to revisiting the IMF adequacy of quotas to be concluded by December 15.
These are all indicators that there is commitment to address global challenges and to focus on addressing the development needs of low- and middle-income countries.
Cape Times