UN Chief

UN chief censures ‘predatory’ lending by rich states

Addressing to leaders of more than 40 of the most underdeveloped nations in Doha, Qatar, Guterres urged wealthier nations to provide $500 billion annually to assist those that are “locked in vicious cycles” that thwart efforts to expand economies and essential services.

The Least Developed Countries (LDC) summit, which takes place every 10 years as usual, has been postponed twice since the coronavirus epidemic began in 2021.

Because their governments are not recognized by UN members, Afghanistan and Myanmar, two of the world’s poorest nations, are not represented at the Doha gathering of 46 LDC members.

Guterres tells the LDC meeting that wealthy nations should provide impoverished countries $500 billion annually.

No big international political figurehead was present.

Guterres criticized the way wealthy nations are handled by the powerful at a leaders’ session held before the general LDC conference on Sunday.

When nations are resource poor, in debt, and still dealing with the historical unfairness of an uneven Covid-19 reaction, he added, economic progress is difficult.

According to Guterres, the “digital revolution” is leaving the world’s poorest countries behind, and the war in the Ukraine has driven up their food and gasoline prices.

UN chief censures ‘predatory’ lending by rich states

Broken promises

“Wealthy countries constructed our global financial system, mostly to their benefit,” he remarked.

The UN chairman declared that because of predatory interest rates, many of you are barred from capital markets because you lack liquidity.

Many presidents and ministers criticized the financial circumstances for LDCs, whose debt is expected to reach $50 billion in 2021 after more than quadrupling in the previous ten years.

The UN head claimed that wealthy countries had broken their pledge to LDCs to donate 0.15 to 0.20 percent of their gross national income.

Guterres stated that poorer governments were caught in a “perfect storm for perpetuating poverty and inequality” and that LDCs needed a “minimum” of $500 billion year to resolve their issues, develop sectors that create jobs, and pay off debt.

According to plans, a food stockholding mechanism known as the “Doha Plan of Action” will be established to assist nations experiencing food emergencies due to drought and high prices.

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