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UN chief: 20 major economies must help developing countries

UNITED NATIONS (AP) – Secretary-General Antonio Guterres on Thursday sent a letter to finance ministers and central bankers of the world’s 20 major economies, urging them to change course and steer a global economic recovery that includes hard-hit developing countries. affected by the COVID-19 pandemic, the impact of war in Ukraine and escalating climate emergencies.

The UN chief said in the letter ahead of the G20 summit in the Indonesian resort of Bali…

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UNITED NATIONS (AP) – Secretary-General Antonio Guterres on Thursday sent a letter to finance ministers and central bankers of the world’s 20 major economies, urging them to change course and steer a global economic recovery that includes hard-hit developing countries. affected by the COVID-19 pandemic, the impact of war in Ukraine and escalating climate emergencies.

The UN chief said in the letter ahead of the Group of 20 summit in the Indonesian resort of Bali next month that these world events, along with the rising cost of living, tighter financial conditions and the Unsustainable debt burdens “are wreaking havoc on economies across the globe.”

“The impact of these cumulative shocks on developing countries is further exacerbated by an unfair global financial system that relies on short-term cost-benefit analyzes and privileges the rich over the poor,” he said.

Guterres said immediate efforts must be made “to end the cost-of-living emergency and increase liquidity in developing countries.”

Urging the G20 to abandon the status quo, he said the UN system and its partners offered a “stimulus” to address deteriorating market conditions and accelerate progress towards UN development goals for 2030, including ending extreme poverty and ensuring quality education for all children. , and achieve gender equality.

The stimulus calls for “a massive increase in public sector commitments to humanitarian and climate development, mitigation and adaptation by just 2% of global gross domestic product (GDP),” the secretary-general said.

It consists of five recommendations: immediately improve debt relief for vulnerable countries, mobilize better loans from development banks, involve private bondholders and sovereign debtors in debt relief efforts, bolster liquidity for vulnerable countries through increased use of special drawing rights and align financial flows with UN goals and the 2015 Paris agreement on climate change, he said.

“Now more than ever,” Guterres said, “G20 leadership is needed to pull the world out of its deepest crisis.”

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