UN Chief Demands Overhaul of Global Financial System

UN Chief Demands Overhaul of Global Financial System

The global financial system favors wealthy nations and leaves developing countries struggling with national currencies and debt burdens, prompting United Nations Secretary-General António Guterres to call for an overhaul of the outdated, dysfunctional, and unfair framework.

The worldwide financial system stands at a crossroads, revealing deep-seated inequities that disproportionately favor wealthy countries, leaving developing countries to grapple with the survival of their national currencies and crippling debt burdens. This stark divide has been magnified by the pandemic, which exposed the systemic biases and inherent flaws of the present framework. 

As developing countries grapple with economic instability and limited access to financial resources, United Nations Secretary-General António Guterres highlighted the need for an overhaul of the present worldwide financial system.

Guterres stated today’s international financial system as “outdated, dysfunctional, and unfair,” adding that it as of now serves rich countries, while a great number of countries continue to suffer “through a deep financial crisis,” he stated during the Group of 7 (G7) summit on Sunday, May 21. 

There is a systemic and unjust bias in worldwide economic and financial frameworks in favor of rich countries, which is naturally generating great frustration in the developing world.”

– stated Guterres.

Third world struggling to recover from the pandemic, Guterres says

Guterres, who served as Portugal’s prime minister greater than 20 years ago, stated leading worldwide economies recovered from the devastating impact of the coronavirus pandemic through expansionary monetary and fiscal policies.

“Trillions and trillions were spent. Basically, they printed money and spent their way out of trouble.”

– Guterres stated.

In the meantime, third-world countries, which have whole lot of debts on their hands, could not do the same as employing such policies would have sent their national currencies sinking, the UN chief added. 

The Secretary-General continued, pointing out “a growing conscience in developer countries, but likewise in the G7, “ that not enough is being done, both to reform outdated institutions” and ease the frustration seen in the Worldwide South, he said.


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