2023-07-19 12:06:52
Antonio Guterres (here during a public meeting with civil society at UN headquarters last March), calls for a reform of international financial institutions. Xinhua/Xinhua/ABACA
DECRYPTION – Antonio Guterres, Secretary General of the UN, denounces the failure of the global financial system.
Between the pandemic, the invasion of Ukraine – which disrupted the food and energy markets – generalized inflation and rising interest rates, the global economy is weakened. And the poor countries are much more weakened than the others. The question of debt and the gap with developed economies was once again on the agenda of the meeting of finance ministers and central bank governors of the G20, organized in Gandhinagar, in the Indian state of Gujarat.
Public debt has climbed all over the world, a United Nations (UN) report pointed out last week, reaching the record amount of 92,000 billion dollars (82,000 billion euros) in 2022. It has multiplied by five in twenty years while the GDP, which measures economic growth, was content to triple over the same period. Most governments have borrowed to deal with crises like the Covid-19 pandemic.
Nearly 3.3 billion people, particularly in Africa, live in countries that spend more on debt interest payments than on health or education
L’ON
But the burden is particularly…
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