FM Bilawal calls for equity in international economic relations

NEW YORK: Foreign Minister (FM) Bilawal Bhutto Zardari has urged the Group of 77 to induct equity in international economic relations and restore the developing economies on a path leading to realization of the SDGs and environmental objectives, ARY News reported on Thursday.

In his opening remarks at G77 Ministerial Conference in New York, the foreign minister said that as the developing countries endeavored to recover from multiple crises, the Group of 77 and China must take the lead in promoting the systemic and structural changes needed to revive sustainable global growth.

The foreign minister emphasised that the developing countries which continued to suffer from the severe impacts of climate change must be assisted, urgently and generously, to recover from these impacts, “even as we start work on operationalizing the loss and damage fund agreed at CoP-27.”

“Without such emergency and systemic actions, the development divide will grow into an unbridgeable gulf, transforming our world into a nightmare, a world afflicted by massive human suffering, social and political instability, and proliferating conflicts, even as our planet and our species confront the mounting existential threat of a climate catastrophe,” he added.

FM Bilawal said as the majority of developing countries faced unprecedented challenges to their economic progress as well as the danger of social and political turmoil, over the past three years, their economies and societies had been ravaged by a series of crises: the Covid-19 pandemic; supply chain disruptions; spiraling prices; depreciating currencies; climate-induced disasters and geopolitical tensions like the Ukraine war.

He told the meeting that the global economic growth next year was predicted to be less than 3% and with the North also walking back from globalization, export-led growth was becoming difficult for most of the developing countries.

He said besides achieving the SDG goals, the developing world also simultaneously needed to recover from the loss and damage from climate impacts and adapt to avoid future impacts.

“Overcoming the development and climate challenges requires herculean efforts by our governments. It requires extensive international solidarity and cooperation. The SDG financing gap has enlarged from $2.5 trillion in 2019 to over $4 trillion today. If the cost of climate objectives is added, we will need several additional trillions to achieve the SDGs and the climate objectives,” he noted.

FM Bilawal further said, “250 million face hunger. Famine haunts millions. 82 of our members are debt vulnerable; 54 are in debt distress. Financial austerity will freeze their growth and entrench and enlarge hunger and poverty. We must chart a path to break out of the poverty trap.”

He thanked the UN Secretary-General Antonio Guterres for setting up the Emergency Task Force and supporting many of its recommendations, and urged the WFP to ensure food supplies for the 250 million in hunger.

He also called for the relevant UN bodies to examine a mechanism to cap commodity and fuel prices for developing countries, ensure their access to food, fuel, and fertilizer and discourage commodity speculation.

Endorsing the UN chief’s call for reformation of international financial architecture, the foreign minister suggested a multilateral mechanism for the sustainable management of sovereign debt; fulfillment of the agreed ODA target of 0.7 p.c. of the GNI of developed countries; the wide utilization of SDRs offering a critical and tested modality to generate financing for the SDGs and climate action.

He stressed the need for adopting an international technology agreement, aligned with the SDGs, through inclusive negotiations which should focus global research and development resources and capabilities on scientific breakthroughs.