UN’s Antonio Guterres says wealthy nations set stage for world war

UN secretary-general Antonio Guterres has called for the urgent reform of the outdated, dysfunctional and unfair global financial architecture, warning “in a fracturing world with overwhelming crises, there is simply no alternative to co-operation”.

Speaking just hours after the decision to admit Argentina, Egypt, Ethiopia, Iran, Saudi Arabia and the United Arab Emirates as full members of the Brics bloc, Guterres said the world cannot afford a divided global economy and financial system, with diverging strategies on technology and conflicting security frameworks.

This would inevitably lead to fragmentation, with dire consequences. “The IMF estimates that such a fracture could cost 7% of global GDP, a cost that would be disproportionately borne by low-income countries, mainly in Africa.”

He added that African countries, historically victims of slavery and colonialism, continue to face injustices.

“On average, African countries pay four times more for borrowing than the US and eight times more than the wealthiest European countries.”

He also said African countries have a right to demand the most from the world’s biggest economies, including China.

He slated the prevailing world order as reflecting “yesterday’s world”, created in the aftermath of World War 2, when African countries were excluded from such discussions.

“This is particularly true of the Security Council of the UN and the Bretton Woods institutions. For multilateral institutions to remain truly universal, they must reform to reflect today’s power and economic realities.

“In the absence of such reform, fragmentation is inevitable,” Guterres said.

He took issue with the Russian invasion of Ukraine, but welcomed increased collaboration that would result from the expansion of the Brics bloc.

“As the global community moves towards multipolarity, we desperately need — and I have been vigorously advocating for — a strengthened and reformed multilateral architecture based on the UN Charter and international law.

“Multipolarity in itself is not enough to guarantee a peaceful or just global community. To be a factor of peace, equity and justice in international relations, multipolarity must be supported by strong and effective multilateral institutions. Look no further than the situation in Europe at the dawn of the last century. Europe was multipolar but it lacked strong multilateral mechanisms. The result was World War 1,” Guterres said.

He added his voice to the call to curb carbon emissions, saying there is an urgent need to “drastically step up climate action and climate justice”. He also said that although Africa accounts for just 4% of global greenhouse gas emissions, it is nonetheless an epicentre of climate chaos.

He urged developed countries to keep their promises to developing countries by meeting their $100bn aid goal, doubling adaptation finance, replenishing the Green Climate Fund, and operationalising the Loss and Damage Fund this year.

Before Guterres closed he praised Ramaphosa for his management and decisiveness in leading the 15th Brics conference, which China, Russia and India described as historic.

“The leadership President Ramaphosa has shown on the world stage is unmatched,” Guterres said.

omarjeeh@businesslive.co.za