UN chief: ‘Global solidarity is missing in action’

Addressing the virtual World Economic Forum, on Monday, the United Nations’ Secretary-General, António Guterres, told world and business leaders that “global solidarity is missing in action”.

Because of the COVID-19 pandemic, for the second year in a row, the Forum scrapped its annual meeting in Davos, Switzerland, for a series of online plenaries and discussions over the year ahead, under the banner of The Davos Agenda. 

Speaking from New York, Mr. Guterres said that this year’s event takes place “in the shadow of an enormously difficult period for economies, people and our planet.”

According to the UN’s flagship economic forecast released last week, the world is emerging from the depths of a paralyzing economic crisis, but recovery remains fragile and uneven. 

With persistent labour market challenges, supply-chain disruptions, rising inflation and looming debt traps, the recovery is now slowing down drastically.

“The last two years have demonstrated a simple but brutal truth - if we leave anyone behind, we leave everyone behind”, the UN chief said. 

Global financial overhaul

“We need to reform the global financial system, so it works for all countries”, Mr Guterres explained. “At this critical moment, we are setting in stone a lopsided recovery.”

With more than eight out of ten recovery dollars being spent in developed countries, the UN chief believes low-income countries are at a huge disadvantage. 

“They’re experiencing their slowest growth in a generation - and trying to dig themselves out with woefully insufficient national budgets”, he said. 

Mr. Guterres pointed to record inflation, shrinking fiscal space, high interest rates and soaring energy and food prices, saying that they are hitting every corner of the world, especially low and middle-income countries. 

For him, “the global financial system has failed them when they need it most.”

Mr. Guterres also asked governments and institutions to go beyond Gross Domestic Product to measure for investment risks, to address corruption and illicit financial flows, and to ensure that tax systems are “fair and designed in a way that truly reduces inequalities.”

Real climate action

Secretary-General said climate action in developing countries should be effective. 

“Turning this ship around will take immense willpower and ingenuity from governments and businesses alike, in every major-emitting nation”, Mr. Guterres said.