47th Annual Meeting of Ministers for Foreign Affairs of the Group of 77 “A path for the reform of the international financial architecture: towards a new and inclusive global economic order” Statement by Hon Ali Sabry, Minister of Foreign Affairs 22 September 2023
September 23, 2023
Hon Chairperson,
Excellencies,
Distinguished Delegates,
As a founding member of the Group of 77, Sri Lanka is pleased to speak at this annual forum of Foreign Ministers. At the outset let me felicitate the Foreign Minister of Cuba, for successfully leading the Group of 77 during the past year of many challenges, and for convening the 47thannual meeting of Ministers on the sidelines of the 78thsession of the UN General Assembly. I congratulate the incoming Chair Uganda. Let me assure you of Sri Lanka’s support during your tenure in achieving the common objectives of the Group.
We meet at a time when the founding objective of the Group of 77 – to articulate and promote the collective economic interests and strengthen the joint negotiating capacity of the countries of the South on all key international economic issues within the UN system – is more pronounced than ever. Numerous new areas of concern and challenges, including the global financial and economic crisis, require the international community to reaffirm its commitment to uphold and defend the purposes and principles of the United Nations Charter and the principles of international law.
We are a coalition of developing nations committed to advancing our collective economic interests and enhancing our negotiating capacity on a range of global issues, including finance. While the G77 has advocated for reforms to the global financial architecture, we have yet to develop a concrete strategy for a new global financial architecture. The position of the G77 on this issue has changed over time and varies among our member nations based on their individual requirements and priorities.
However, we have consistently emphasised the following themes regarding the global financial architecture:
- Firstly, The Reform of International Financial Institutions (IFIs): as you may recollect, we have called for greater representation and voice of developing countries in IFIs such as the International Monetary Fund (IMF) and the World Bank. We have repeatedly argued that decision-making processes should be more inclusive and reflect the interests of all member countries, especially those from the Global South.
- Secondly, Debt Relief and Sustainable Financing: As the G77, we advocated for equitable and sustainable debt relief mechanisms for developing nations burdened by external debt. In addition, we have emphasised the need for innovative and sufficient financing mechanisms to support development initiatives, including increased Official Development Assistance (ODA) and other forms of financial support.
- Thirdly, Strengthening Regulation and Oversight: To prevent financial crises and guarantee stability, we have called for stronger regulations and oversight of global financial markets. We have emphasised the need for policies that promote financial inclusion, reduce inequality, and address the vulnerabilities encountered by developing countries in the global economy.
We are cognizant of the fact that the G77’s position on the global financial architecture can change over time and that member nations’ policies can vary.
We cannot wait much longer, we cannot sustain another round of economic haemorrhaging, and the global poly-crises have provided the opportunity to reevaluate the international financial architecture. Sri Lanka echoes the sentiment of this group that ‘the window of opportunity for action on debt and new finance is closing and there is a need to adopt a long-term and comprehensive vision for change’.
This year’s theme of this meeting is therefore, pertinent.
As the largest coalition of developing states, this organization provides a platform for improved cooperation among its members and facilitates a more strategic relationship with the global North – both of which are essential for the reforms we seek to secure.
Chair,
Sri Lanka has long supported South-South cooperation as a strength to developing countries, since pioneering the concept in the UNCTAD. This cooperation is yet not explored to its full, vast potential. As the incumbent President of the High Level Committee of South-South Cooperation, Sri Lanka intends to continue the good work done in expanding the relevance and application of the principles of South-South Cooperation within the UN system, including at the domestic level. The mobilization of adequate financial and technical resources is central to development and implementation of the 2030 agenda. Sources of funding should be made available to our countries who support SDG implementation.
Chair,
Sri Lanka has made significant policy changes alongside efforts to mobilize the needed resources in the recovery process drawings on the lessons learned, and has sought to embark on an ambitious structural reform agenda backed by an IMF programme. Sri Lanka is committed to economic recovery, debt sustainability, while ensuring that there are no major regressions of the achievements made in reaching the goals of the 2030 agenda.
While Sri Lanka is seeking to cooperate with international financial institutions in its recovery, we have also observed a ‘weaponization’ of debt issues of developing countries”. A search for a quid- pro-quo from the vulnerable, that must be discouraged. I cannot help but recall President Ramaphosa’s recent appeal to the developed world in Paris for a humane approach. We cannot overlook the fact that the SG’s request for global funds was ignored. The demand for climate justice has attained academic status. The victims of climate malpractices continue to bear the consequences.
In our efforts to have transparent debt discussions with creditors, the tensions of the global environment proved to be a formidable obstacle. To re-iterate my President – let us wake -up and demand a serious discussion on the issues of global polarization, and its inordinate impact on countries of the global south.
Sri Lanka reaffirms its commitment to the Group’s aspirations, principles of unity, cooperation, and solidarity, and to the transformation of today’s pledges into tangible and meaningful results.
Thank you.