How to reform a global economic system unfavorable to poor countries? United Nations Secretary General Antonio Guterres believes that the system largely benefits rich countries, to the benefit of more fragile countries.
Antonio Guterres, present at the summit of Least Developed Countries (LDCs) in Doha, asked developed countries for aid of some 500 billion dollars a year for the poorest countries on the planet, “stuck in vicious circles” which prevent the reform of their economies and the refloating of their education and health systems.
“Economic development is difficult when countries lack resources, are crippled by debt and are still struggling with the historic injustice of an unequal response to Covid-19,” he said as the poorest countries have repeatedly denounced an unfair distribution of vaccines, concentrated in Europe and North America. “Fighting a climate catastrophe that you have in no way caused is a challenge when the cost of capital explodes” and the financial assistance received is “a drop in the ocean”, added the secretary general of the international organisation.
Many poor countries excluded from “capital markets”
“Our global financial system was designed by rich countries, largely for their benefit,” he said. “Cashless, many of you are being squeezed out of capital markets by predatory interest rates.” Leaders and representatives from 33 African countries, 12 Asia-Pacific countries and Haiti were meeting in Doha five decades after the UN created the LDC category.
An action plan for these countries was adopted at the UN General Assembly last year. But no promise of major financial contribution is planned during the summit, postponed twice because of the coronavirus. Afghanistan and Burma are not present, their governments not being recognized by the members of the UN.