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UN chief says global finance system fragmenting; Myanmar crisis worsens

September 08/ 2023 | View Counts :5994
International News

Reuters / The Daily Star

Thu Sep 7, 2023 11:42 AM

 

Theworld risks a "great fracture" of its economic and financial systems,UN Secretary-General António Guterres said on Thursday at a summit withSoutheast Asia's ASEAN bloc, China, the United States and others in Indonesia.

 

In a wide-ranging speech that touched on geopoliticaltension, multilateral development finance and climate change, Guterres calledon world leaders to find peaceful and inclusive solutions to the challengesfacing the world.

 

"There is a real risk of fragmentation – of a greatfracture in world economic and financial systems; with diverging strategies ontechnology and artificial intelligence and conflicting securityframeworks," he said.

 

He called for a mechanism to provide relief fordebt-strapped developing economies, to include payment suspensions, longerlending terms and lower interest rates.

 

He also voiced support for re-channelling an additional $100billion of International Monetary Fund's Special Drawing Rights throughmultilateral development banks to increase liquidity and support developingeconomies' needs.

 

Rich countries agreed in 2021 to re-channel the unusedfunds, an international reserve currency, to poor countries.

 

At a Paris summit in June this year, world leaders backed apush for multilateral development banks like the World Bank to put more capitalat risk to boost lending.

 

World Bank president Ajay Banga outlined a"toolkit" at that summit, including offering a pause in debtrepayments, giving countries flexibility to redirect funds for emergencyresponse, providing new types of insurance to help development projects and helpinggovernments build advance-emergency systems.

 

Guterres also said he remained "deeply concerned"over the "worsening political, humanitarian, and human rights"situation in Myanmar, a nation besieged by war since a 2021 military coup.

 

"I reiterate my urgent call on the military authoritiesof Myanmar to listen to the aspirations of its people, release all politicalprisoners, and open the door to a return to democratic rule," he said.

 

In a statement on Wednesday, ASEAN chair Indonesia saidregional leaders expressed "grave concern" over a lack of substantialprogress on their five-point peace plan for Myanmar.

 

ASEAN leaders are set to hold talks with the United Nationslater on Thursday.


Photo by The Hill

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