2023-06-23 17:27:16
The summit for a new global financial pact, which brought together for two days in Paris, on June 22 and 23, some forty heads of state and government, did not lead to a “funding shock” expected. But it allowed a number of ideas to advance in order to reduce the North-South divide.
The International Monetary Fund (IMF) and the World Bank have supported the introduction of “climate clauses” in loans to the most fragile countries. They will make it possible to suspend reimbursements when a country is affected by a climatic disaster.
The idea of an international tax on maritime transport, in order to finance the climate transition, also received broad support. US Treasury Secretary Janet Yellen said to herself ” opened ” on this subject, while the United States was among the most reserved countries. This project is to be discussed next month within the International Maritime Organization.
Avoid the fragmentation of the planet
But perhaps most important is the general tone of the debates. The final meeting resulted in direct exchanges between China and the United States, during which the two countries recognized the need for cooperation. We also heard leaders from countries in the South challenge those in the North.
South African President Cyril Ramaphosa was outraged at being “treated like a beggar”, during the Covid epidemic, when it came to obtaining vaccines. Brazilian President Luiz Inacio Lula da Silva launched into a vibrant plea for aid to the most deprived.
If this summit could have been useful, it is primarily for this: for these moments of sometimes muscular dialogue, when the rise in tensions in the world in recent years has resulted in a decline in cooperation . “This free dialogue is a condition for building the unity we need, judged Emmanuel Macron. If we fail, we will go towards a fragmentation of the planet. »
The “Paris Consensus”
France’s hope is to build a « nouveau consensus international ». The phrase refers to the « consensus de Washington » which has dominated development economics since the 1980s and which relied on economic liberalization to foster growth. This recipe has since shown its limits.
The new consensus – which the French president already names “Paris consensus for the peoples of the planet” – relies instead on increased public funds to solve the problems of poverty and global warming, “without forcing any State to choose between these two priorities”.
The participants agree on a need to help poor countries more. The reports presented at the summit show that the 100 billion per year promised by the countries of the North in favor of the climate should be reached this year. There are also 100 billion special drawing rights (SDR), the reserve currency of the IMF, which this year will be made available to fragile countries.
However, this is still far from being enough to reduce the widening gap between countries on the planet: “France has the merit of putting the climate and economic crises in the spotlight. But we are still a long way from a truly new global financial pact,” thus judges Najat Vallaud-Belkacem, France director of the One association. Summit participants are discussing a reform of the World Bank so that it can increase its resources. But this remains to be done and may take a long time.
Two exemplary agreements
The meeting did, however, allow some small steps to be taken. The presence at the summit of the Chinese Prime Minister made it possible to conclude an agreement on Zambia’s debt. The country obtained a rescheduling over twenty years, while it accumulates 1.4 billion dollars in arrears. Today, 52 countries are considered by the UN to be over-indebted.
On the sidelines of the summit, donors also concluded an agreement with Senegal, up to 2.5 billion euros, to finance the energy transition. It is a question of helping this country to limit its consumption of heavy fuel oil, to turn to renewable energies. This agreement is also intended to be exemplary in demonstrating that African economies can combine growth and reduction of their CO2 emissions.
#Paris #Emmanuel #Macron #forge #climate #consensus