Marrakech (Morocco), Oct. 10, 2023: The Intergovernmental Group of Twenty-Four on International Monetary Affairs and Development (G-24) has issued the following statement:
- Development and Climate Financing: G-24 members noted that the global economic landscape is uncertain, with any countries affected by declining access to and tight external finance conditions, high debt levels and rising inflation.
The Group called for a variety of steps to increase the financing available to developing countries.
They asked for allocation of new Special Drawing Rights, the IMF’s reserve currency; reform of IMF short-term financing instruments; increased concessional resources to low-income countries, reform of the IMF’s surcharge policy; increased channeling of SDR from donor countries to needy countries and increase of the Fund’s resource base through its 16th General Review of Quotas.
Member countries were of the view that these recommendations would provide additional financing for members to mitigate shocks and invest in climate action and sustainable development.
- Debt relief: G-24 members expressed concern about high and increasing public debt levels, with many developing countries carrying unsustainable debt burden.
While members welcome the G-20 Common Framework, they noted that some of the poorest and most vulnerable countries are excluded from the benefits of debt relief.
The G-24 called for a durable debt resolution for these countries.
- Reforms of the Bretton Woods Institutions: G-24 members expressed their concern with the progress on IMF general quota review.
They reiterated their call for the IMF to remain a quota-based institution in order to bolster the voice and representa�on of emerging market and developing economies, who now account for a larger share of world GDP.
Addi�onally, they recommended further pursuit of governance reforms aimed at correc�ng regional underrepresenta�on in the IMF.
While welcoming the World Bank reform program to expand its mandate, better utilize resources, and improve operating efficiencies, G-24 members called for more concessional lending, especially for investments in global public goods and sustainable development such as affordable water and energy.
- Reforms of International Taxation and Trade: Members welcome the United Nations Secretary-General’s Inclusive and Effective Tax Reform agenda and called for a mul�lateral consensus to drive enduring progress on the ini�a�ve as it would foster a more just and balanced interna�onal tax system.
On trade, members noted the rising trend in protec�onist policies, especially from the largest economies, has adverse repercussions on global integra�on and trade.
They noted that developing countries experience unequal distribution of the benefits of trade, limited market access and unfair trade practices, especially in the agriculture sector, which is often the main source of livelihood for the poor.
They therefore called on the Breton Woods Ins�tu�ons (BWI) to lend their support to reforms of the mul�lateral trade system. (GBN)
