By Babajide Komolafe, Economy Editor, in Bangkok, Thailand
The Intergovernmental Group of Twenty-Four on International Monetary Affairs and Development, G-24, has called for improved financing conditions, faster debt restructuring and stronger international financial cooperation to support Nigeria and other developing economies facing mounting debt and development financing challenges.
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Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Mr Taiwo Oyedele, who is Chairman of the Intergovernmental Group of Twenty-Four on International Monetary Affairs and Development, G-24, made the call at a press conference on the outcome of the meeting of the Group, during the ongoing International Monetary Fund (IMF)/World Bank Annual Meetings in Bangkok, Thailand.
He said developing countries needed a more responsive international financial system capable of addressing their economic vulnerabilities, supporting growth and ensuring that debt obligations did not undermine development priorities.
“Debt vulnerability is a major obstacle to growth in many developing countries,” Oyedele said, highlighting the need for predictable and coordinated approaches to resolving sovereign debt problems.
“We call for predictable, timely and coordinated sovereign debt treatments,” he said, stressing the importance of cooperation between creditors and debtors in resolving debt difficulties.
The G-24 chairman said the growing financing challenges confronting developing economies required collective action by governments, multilateral development institutions and other international stakeholders.
His position reflects concerns that high borrowing costs and debt-service obligations are limiting the fiscal space available to developing countries to finance infrastructure, healthcare, education and other development priorities.
Oyedele said the international community must also strengthen the voice and representation of developing economies, particularly vulnerable countries, in global financial institutions.
He called for reforms that would make the international financial architecture more responsive to the changing structure of the global economy and the needs of developing countries.
“We emphasised the importance of strengthening the voice and representation of developing countries, particularly the most vulnerable economies, in international financial institutions,” he said.
According to him, a more representative multilateral system is essential to restoring confidence in the global economy and ensuring that international economic decisions take account of the circumstances of developing nations.
“Restoring confidence in the global economy requires a multilateral system grounded in respect for national sovereignty and the principles of the United Nations Charter,” he said.
Climate financing
Oyedele also called for increased climate financing for developing countries, arguing that efforts to address climate change must take account of the economic and social challenges facing vulnerable populations.
He said climate action should not undermine the livelihoods of people in developing countries, particularly those struggling with poverty, food insecurity and inadequate access to essential services.
The G-24 chairman stressed the importance of international cooperation in mobilising the resources required to support climate adaptation and sustainable development.
“We also stressed the importance of expanding access to climate finance, guided by the principle of common but differentiated responsibilities and respective capabilities,” he said.
He urged multilateral development banks and other stakeholders to meet their financing commitments.
“We expect the World Bank Group, multilateral development banks and other stakeholders to deliver on the target of mobilising at least $300 billion annually by 2035, as established at COP29,” Oyedele said. He also called for international tax reforms to address tax avoidance, profit shifting and illicit financial flows, which reduce the resources available to governments for development.
“On international taxation, we called for reforms to address profit shifting, tax avoidance and illicit financial flows,” he said.
Oyedele welcomed progress under the United Nations Framework Convention on International Tax Cooperation and the Organisation for Economic Co-operation and Development (OECD)/G20 Inclusive Framework.
Growth must create jobs
Director of the G-24 Secretariat, Iyabo Masha, said economic growth must translate into jobs, better living standards and improved opportunities for citizens rather than being measured solely by macroeconomic indicators.
“The objective is to create a more liveable environment for our people, irrespective of their circumstances,” Masha said.
She stressed that growth must be inclusive and provide tangible benefits for households, particularly young people seeking employment and economic opportunities.
“Economic growth must create jobs, provide opportunities for young people and improve living standards,” she said.
Masha added that the quality of growth was as important as the pace of expansion.
“Growth should be inclusive and translate into tangible benefits for households,” she said.
Oyedele, however, emphasised that macroeconomic stability remained a necessary foundation for achieving these development objectives.
“Macroeconomic stability is not a bad policy objective. It is actually the foundation of economic growth,” he said.
“If a country does not have a stable macroeconomic environment, it becomes difficult to implement structural reforms, employment-generating policies, infrastructure development and other measures needed to support growth,” he added.
According to him, macroeconomic stability should complement policies designed to promote productive investment, employment and inclusive development.
“The ultimate objective is to ensure that economic growth improves the living standards of our people,” he said.
The G-24 also called for reforms to the IMF quota system to reflect changes in the global economy and improve developing countries’ representation in the institution’s decision-making processes.
The group argued that the quota framework should recognise the growing importance of emerging markets and developing economies while protecting the interests of smaller and poorer members.
It also stressed the need for stronger coordination among creditors, greater transparency in sovereign debt negotiations and more effective participation by private creditors in debt restructuring.
The G-24 said these measures would help improve the international debt resolution framework, reduce prolonged uncertainty for countries facing debt distress and create better conditions for sustainable economic growth.
Oyedele said restoring confidence in the global economy would require a multilateral system that respects national sovereignty while responding more effectively to the financing and development needs of vulnerable economies.
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