“The international financial architecture, built in 1945 after World War II, is undergoing a stress test of historic proportions – and it is failing that test,” the United Nations argues. Secretary-General António Guterres in 2023 policy summary
He pointed out that unsustainable debt levels are crippling many poor countries, to the point where they cannot invest enough in areas vital to development, such as social protection and health care.
Missed Target
The need for reform has become more urgent as the deadline for achieving the target approaches. Sustainable Development Goals create Agenda 2030 for Sustainable Development, was established to set measurable goals to build a better future by the end of the decade.
The Goals were adopted by United Nations Member States in 2015, meaning that the halfway point would have been reached by 2023. This milestone was marked in September last year. SDG Summitdesigned to give the Goals a much-needed boost, at a time when official UN statistics show that only 15 percent of the Goals have been achieved.
Delegates attending the Bretton Woods Conference, July 1944.
A new Bretton Woods?
In his policy brief, the UN chief laid out proposals that could help countries lift their citizens out of poverty and reach their full potential, calling for a “new Bretton Woods moment,” a reference to the groundbreaking post-World War II international agreement that led to the creation of the International Monetary Fund (IMF).International Monetary Fund) and the World Bank, which decide how and under what conditions countries in need of financial assistance can borrow money.
The context in which the IMF and the World Bank were founded is virtually unrecognizable from today’s political and economic climate. First, there were only 44 delegations, compared to the current IMF membership of 190 countries. However, developed countries continued to hold veto power and over-voting power, while developing countries remained under-represented.
The system is now “completely unfit for purpose in a world facing relentless climate change, rising systemic risks, extreme inequality, entrenched gender bias, highly integrated financial markets vulnerable to cross-border contagion, and dramatic demographic, technological, economic and geopolitical changes,” Mr. Guterres said.
The answers, according to the UN chief, include boosting financing to eradicate poverty and support sustainability, making the main decision-making bodies of the IMF and World Bank more democratic and representative, and creating a new, overarching body to coordinate global economic decisions, with the power to act as an “Economic Authority.” Security Council”.
Everyone has the right to live in a clean environment, free from pollution and its harmful effects.
A covenant and a commitment
The proposals contained in the policy brief and the commitments made at last year’s SDG Summit form the basis for a series of discussions scheduled to take place at Summit of the FutureA landmark conference took place at United Nations Headquarters in late September.
They will also be reflected in Treaty for the futurea text to be adopted by the Member States of the United Nations at the Summit and to represent, by António Guterresa commitment by all nations to “use every tool available at the global level to solve problems – before they overwhelm us”.
In the Compact, signatory countries commit to take “bold actions” to implement the 2030 Agenda for Sustainable Development, with a particular emphasis on ending poverty; reducing inequality; and increasing ambition to tackle climate change.
The Summit will create momentum towards the International Conference on Financing for Development (Ffd4), scheduled to be held in Spain in June 2025.
