International financing cooperation should focus on global development issues. Developing countries | Africa | Global

Paris, June 24th (Xinhua) - International financing cooperation should focus on global development issues

Xinhua News Agency reporter Liu Fang Qiao Benxiao

The two-day New Global Financing Contract Summit concluded on the 23rd in Paris, France. Leaders from multiple participating countries and international organizations pointed out that the current Western led international financial management rules and structures are not in line with the current global development situation, and it is necessary to accelerate the construction of a fair and efficient global financial governance pattern. International financial cooperation should focus on global development issues and address development challenges for developing countries.

The call for reform is constantly heard

In recent years, multiple global crises have dealt a heavy blow to developing countries, and issues such as climate change have continued to hit fragile economies. At the same time, major developed countries are tightening their financial policies, increasing the debt risk of low - and middle-income countries, weakening their economic recovery capabilities, and being unable to invest in climate action and long-term sustainable development. However, the International Monetary Fund and the World Bank have clearly insufficient support for underdeveloped countries, and there is a growing call for reform of these two global multilateral financial institutions.

The "International Financial Structure Reform Policy Briefing" released by the United Nations in May pointed out that the international financial structure was designed by industrialized countries for themselves after World War II and is currently undergoing unprecedented stress tests, which have not passed. The briefing pointed out that this is because it had structural flaws at the beginning of its conception. The international financial structure is becoming increasingly incompatible with the reality and needs of the world today, making it unable to fulfill its mission and provide long-term support for large-scale stable mobilization of funds to address the climate crisis and achieve sustainable development goals for 8 billion people worldwide.

In this context, French President Macron and Barbados Prime Minister Motelli jointly initiated the convening of this summit. Macron looks forward to multilateral discussions to jointly agree on a comprehensive reform of the global financial system. Motley called for fundamental reforms to the global financial system to achieve more inclusive and representative global economic governance.

During the summit, there was a constant call for reform. UN Secretary General Guterres once again warned that the current international financial structure is "outdated, dysfunctional, and unfair.". African leaders such as South African President Ramaphosa, Senegalese President Saleh, and Egyptian President Cesi have unanimously called for multilateral development banks to reduce borrowing costs, improve efficiency, and provide the necessary and deserved credit support to underdeveloped countries.

IMF President Georgieva said that the IMF and the World Bank must change their thinking and working methods. In addition, she also introduced the progress of relevant plans to provide additional special drawing rights support for developing countries. The newly appointed President of the World Bank, Banga, has announced arrangements that can temporarily suspend debt repayment for the most vulnerable countries during times of crisis or disaster.

Sultan, the incoming President of the United Nations Climate Change Dubai Conference, pointed out that there is a huge funding gap to jointly address climate change and promote sustainable development in the world. "It is impossible to solve problems that can only be solved through major surgeries with only bandaids and painkillers.".

Damien Balhish, Director of the Sustainable Development Governance Program at the French Institute for Sustainable Development and International Relations, believes that only radical and global solutions can achieve the required scale of financing and innovation. Progressive change is not enough for countries that need funding the most.

Pragmatic cooperation promotes development

The dishonesty of developed countries is a common issue raised by the leaders of participating African countries.

As soon as the summit opened, Congolese President Sassou proposed that developing countries would spend trillions of dollars to transition to a low-carbon and climate resilient economy. Developed countries promised to provide $100 billion annually to help developing countries cope with climate change, a goal that has never been achieved since its establishment in 2009.

At the high-level dialogue meeting before the conclusion of the summit, Egyptian President Sisi reiterated that industrialized countries have a moral and political responsibility towards underdeveloped countries in addressing climate change, and fulfilling their responsibilities is the key to gaining trust. He said, "I have attended many summits and heard a lot of promises. I only congratulate when the project is truly launched or has been realized."

Cesi also pointed out that building the most basic infrastructure is the key to the success of the African continent. Senegal's President Salle also emphasized that financing for projects such as highways, railways, ports, and power plants is an urgent need for African countries.

African heads of state attending the meeting have drawn the attention of international financial institutions to the fact that African countries have their own development goals and practical cooperation in promoting infrastructure construction, developing production and manufacturing capabilities, and other specific projects, in order to bring real changes to African economic and social development, break the vicious cycle of hunger and conflict, and enhance the ability to cope with the impact of climate change.

Jimmy Jabb, head of the "China Africa French speaking Countries" Observatory in Cameroon, believes that China has achieved impressive results in infrastructure construction in Africa. "In this regard, China is the best partner of southern countries in the world and also the most important partner of Africa.".