15 April 2024 - The Secretary-General and President of the General Assembly on Monday led the clarion call for urgent reform of the global financial system, notably how to approach debt relief on behalf of the billions of citizens living in the developing world.
Addressing a high-level meeting of the General Assembly on debt sustainability, António Guterres outlined the crippling impact of debt on developing economies.
“No example of the international financial architecture’s failure is more glaring than its handling of debt. The last four years have been nothing short of a debt disaster,” he said.
He noted that the burden of servicing external debt leaves many countries with little to invest in their own people.
Startling figures
According to UN figures, in 2023, global public debt reached $313 trillion, with the situation particularly alarming in developing economies.
Over a fifth of the tax revenue in 25 developing countries went towards servicing external debt, while extremely high borrowing costs left countries with about 3.3 billion people in total – around 40 per cent of the global population – spending more on interest payments than on health or education initiatives.
“Instead of a safety net, developing countries are faced with an outdated, dysfunctional, unjust system that isn’t meeting their needs,” he added.
Convened by the President of the General Assembly, the debate on debt sustainability and socioeconomic equality for all, marked the first high-level discussion as part of the world body’s first ever Sustainability Week.
Other highlights include dedicated discussions on sustainable transport, tourism and energy.
Read more: https://news.un.org/en/story/2024/04/1148591