Foreign
THE Intergovernmental Group of Twenty-Four (G‑24) has called for a strong commitment and united international effort to restore peace, stability, and rebuild livelihoods for those affected by different crises worldwide.
This was contained in a communique issued by the International Monetary Fund(IMF) Press Centre on Wednesday after the 111th meeting of the G-24 Ministers, Central Bank Governors, and their Deputies in Washington DC.
The News Agency of Nigeria (NAN) reports that the Intergovernmental Group of Twenty-Four on International Monetary Affairs and Development (G-24) is a forum to coordinate the positions of developing countries on international monetary and development finance issues.
The G-24 said they recognised the profound human suffering from different crises worldwide, stemming from conflict, natural disasters, violence, or other calamities
They said these calamities had exacted a heavy toll on individuals and communities.
“We call on International Financial Institutions (IFIs) to provide support to affected countries in an equitable manner.”
The group said there were lingering weaknesses and uncertainties in the global economic landscape, especially in Emerging Markets and Developing Economies (EMDEs) and Low‑Income Countries (LICs).
“This is in spite of the projections of recovery and moderate growth in Advanced Economies (AEs), and stable growth in EMDEs.
“This means that the goal of achieving sustainable and inclusive development by 2030 is more challenging than before.
“ We ask all parties of the international community, especially multilateral organisations, to work together and make their best efforts to accelerate progress.”
The G-24 said the rapid pace of adoption of artificial intelligence and digitalisation, while presenting new opportunities, portends uncertain risks, especially in labor-intensive sectors in EMDEs and LICs.
They also said frequent geopolitical tensions were disrupting supply chains, adversely impacting economic activity.
“We urge for renewed multilateral cooperation to support vulnerable countries in mitigating the downside risks and weathering these challenges.”
The G-24 also called on the IMF to consider expanding the Resilience and Sustainability Facility (RST) beyond climate change and pandemic preparedness to include other sources of Balance of Payments (BOP) vulnerabilities.
“ Additionally, we welcome the increase in access limits for the Poverty Reduction and Growth Trust (PRGT) facilities, as it would better support LICs amid the challenging global economic environment.
“To further bolster the resource envelope available for EMDEs and LICs, we call on willing countries with strong Balance of Payment positions to voluntarily re‑channel their unused Special Drawing Rights (SDR) to needy members.”
The group also called for a normalisation of the margin for the rate of charge on IMF lending (SDR rate), in line with the existing policy; and a review of the surcharges.
“ On surcharges, we reiterate our earlier calls, including for their elimination or substantial permanent reduction. Until such a decision is made, surcharges should be suspended.
“Such changes to charges and surcharges would have immediate positive impacts on a broad set of members through increased fiscal space and reduced debt service burden, while still securing a prudent management of risks from the perspective of IMF finances.”
The G-24 said the approval of a third chair for sub‑Saharan Africa was a positive development, as it improved the representation and voice of the region.
However, the group said they encouraged the creation of a fifth Deputy Managing Director post for EMDEs for similar reasons.
“ However, we note that increasing quotas without addressing the current underrepresentation of the EMDEs in the IMF governance structure would continue to undermine the organisation’s legitimacy and credibility.
“Therefore, we call for a quota realignment that reflects the evolving economic realities of member countries, and a stronger voice and representation for EMDEs.
“Such a realignment should not come at the expense of other EMDEs and LICs members.
The group said “we expect well‑balanced results and great improvements in the speed and efficiency of the World Bank Group and better services to its clients.
“The commitment to allocate 45 per cent of annual financing to climate‑related projects should not be at the expense of financing for basic developmental challenges of eradicating poverty and boosting shared prosperity.
“Rather than setting a fixed target, we believe that the focus should be on supporting the structuring and bankability of projects to ensure the mobilisation of resources.”
Given the economic challenges faced by developing countries, the G-24 called on International Development Association (IDA) management and contributor countries to avoid hardening funding terms for the most vulnerable members.
The G-24 called for the design of a comprehensive and responsible approach that has concrete and impactful measures to support countries in breaking the vicious cycle of worsening debt and climate crises.
“In this regard, we support the launching of the Global Expert Review on Debt, Nature and Climate.
This would further support developing economies in confronting large refinancing needs and debt service burden.”
The group said it was crucial to bolster multilateralism and reform the global trade system while mitigating risks associated with trade fragmentation.
“We call upon MDBs and IFIs to coordinate their development agenda closely and to extend their support to a resilient multilateral trade framework.
“We call upon nations to secure trade routes and provide safe passage for the movement of goods and commodities across all major trade lines.
“ Collective collaboration and cooperation among diverse multilateral institutions are imperative in addressing the challenges of multilateralism and striving towards a more prosperous and equitable world.”(NAN)
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-April 17, 2024 @ 10:48 GMT|
Tags: G-24
