Unsustainable debt drags the majority of the Global South towards an economic abyss. The current financial architecture is not ready to provide the response that these nations need, Díaz-Canel noted.
A step in that direction would be to redesign and recapitalize multilateral banks to assist the developing countries, said the Cuban president, who warned that this refinancing would not be enough to meet the needs of 80 percent of the world’s population, grouped in the members the G77+China.
“An effective and inclusive solution is needed with the participation of all creditors, so that the countries of the South, particularly the middle-income countries, with billions of dollars of their own domestic savings, invest in their development,” he stressed.
Díaz-Canel also described a reform of the current governance system and the governance structure of international financial institutions, especially the International Monetary Fund, as an essential step.
“The voting system based on economic-financial power is no longer sustainable,” he stressed in this regard. An improved global sovereign debt architecture with significant participation by the developing countries is necessary, as well as inclusive and effective platforms to design and debate international tax rules and regulations at the United Nations, he noted.
The G77+China expects that this dialogue can foster the political will urgently to implement what is necessary to overcome what he described as one of the most complex crises that humanity has witnessed, Díaz-Canel noted.