Reform IMF, WB with BRICS Involvement, UN Chief Bats for Global South – Asian News from UK
The international financial and development institutions should be reformed to reflect the interests of the Global South, Secretary-General Antonio Guterres has said. While the BRICS can play an important and complementary role for developing nations, he stressed that it should not contribute to a fragmentation of the world economy.
Speaking at a news conference, Guterres highlighted the need for reforms in international financial institutions such as the International Monetary Fund (IMF) and the World Bank. He argued that these institutions were established in the 1940s and no longer reflect the current power relations and global economy. Guterres called for them to be reformed to truly represent the interests of the Global South and to be more universal and inclusive.
We obviously need those institutions to reflect the interests of the Global South, Guterres emphasized.
He also discussed the role of BRICS, a group originally consisting of emerging economies Brazil, Russia, India, China, and South Africa. Guterres acknowledged the importance of having various organizations to support developing countries in finance and trade. However, he cautioned against a fragmented global economy and emphasized the need to maintain a united global market and internet.
Guterres added that BRICS, along with other organizations, can play a significant and complementary role within a united global economy.
In terms of the fitness of the current international financial institutions, Guterres pointed out that they are undercapitalized and no longer sufficient for the needs of the contemporary global economy. He highlighted the need for meaningful capitalization and structural changes to these institutions.
Regarding possible reforms, Guterres stated that the United Nations Summit of the Future in September could provide directions on how these institutions should structurally move. He emphasized the importance of serious dialogue and collaboration between developed and developing countries, as well as between rich and emerging economies.
Guterres acknowledged the current political situation as chaotic, with unclear power relations and political actors acting with impunity. To address these challenges, he called for a serious conversation and cooperation among nations.
In conclusion, Guterres emphasized the need for reforming international financial and development institutions to better represent the interests of the Global South. While highlighting the importance of organizations like BRICS, he urged against fragmentation and emphasized the importance of a united global economy. Guterres called for meaningful capitalization and structural changes in international financial institutions to meet the needs of the contemporary global economy.
