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BENGALURU: As G20 finance ministers and central bank heads gathered for talks in Bengaluru on Friday, Prime Minister Narendra Modi called for the reform of global lenders like the World Bank.
In his video address to the G20 meeting of the finance ministers and central bank governors, PM Modi said it was imperative for the grouping to provide stability, confidence and growth to the global economy.
He noted that trust in international financial institutions had eroded . “Trust in international financial institutions has eroded. This is partly because they have been slow to reform themselves,” Modi said.
PM Modi emphasized the need to strengthen multilateral development banks to address global challenges like climate change and high debt levels.
“Even as the world population has crossed eight billion, progress on sustainable development goals seems to be slowing down. We need to collectively work to strengthen multilateral development banks for meeting global challenges like climate change and high debt levels,” he said.
“You represent the leadership of global finance and economy at a time when the world is facing serious economic difficulties. The Covid-19 pandemic has delivered a once-in-a-century blow to the global economy. Many countries, especially developing economies, are still coping with its after-effects. We are also witnessing rising geopolitical tensions in different parts of the world,” Modi said in a video message.
Other leaders, including US Treasury Secretary Janet Yellen, also called for the World Bank to expand its remit beyond poverty reduction to include work on global challenges. However, this proposal has raised concerns about the bank’s credit rating.
India took over the presidency of G20 in December last year and hosted various events and conferences. The meeting of finance ministers and central bank governors is the first major event of G20 under India’s presidency.
Discussions at the meeting were expected to focus on the ongoing damaging effects of the Covid-19 pandemic and the Ukraine war, as well as debt relief for poorer nations struggling with high food and fuel prices. The IMF reported that around 15 percent of low-income countries are in debt distress, and an additional 45 percent are at high risk.
Despite efforts to address debt relief through the G20’s Common Framework for Debt Treatments, progress has been limited due to disagreements between China and other large creditor countries. The IMF announced a new Global Sovereign Debt Roundtable to facilitate collaboration between creditors and debtor countries.
Other topics of discussion included green industry financing, global tax reform, and a call from UN Secretary General Antonio Guterres for G20 countries to agree to a $500 billion annual stimulus for sustainable development. It remained unclear if the delegates would agree on a joint statement, given differences over the Ukraine war.
In his video address to the G20 meeting of the finance ministers and central bank governors, PM Modi said it was imperative for the grouping to provide stability, confidence and growth to the global economy.
He noted that trust in international financial institutions had eroded . “Trust in international financial institutions has eroded. This is partly because they have been slow to reform themselves,” Modi said.
PM Modi emphasized the need to strengthen multilateral development banks to address global challenges like climate change and high debt levels.
“Even as the world population has crossed eight billion, progress on sustainable development goals seems to be slowing down. We need to collectively work to strengthen multilateral development banks for meeting global challenges like climate change and high debt levels,” he said.
“You represent the leadership of global finance and economy at a time when the world is facing serious economic difficulties. The Covid-19 pandemic has delivered a once-in-a-century blow to the global economy. Many countries, especially developing economies, are still coping with its after-effects. We are also witnessing rising geopolitical tensions in different parts of the world,” Modi said in a video message.
Other leaders, including US Treasury Secretary Janet Yellen, also called for the World Bank to expand its remit beyond poverty reduction to include work on global challenges. However, this proposal has raised concerns about the bank’s credit rating.
India took over the presidency of G20 in December last year and hosted various events and conferences. The meeting of finance ministers and central bank governors is the first major event of G20 under India’s presidency.
Discussions at the meeting were expected to focus on the ongoing damaging effects of the Covid-19 pandemic and the Ukraine war, as well as debt relief for poorer nations struggling with high food and fuel prices. The IMF reported that around 15 percent of low-income countries are in debt distress, and an additional 45 percent are at high risk.
Despite efforts to address debt relief through the G20’s Common Framework for Debt Treatments, progress has been limited due to disagreements between China and other large creditor countries. The IMF announced a new Global Sovereign Debt Roundtable to facilitate collaboration between creditors and debtor countries.
Other topics of discussion included green industry financing, global tax reform, and a call from UN Secretary General Antonio Guterres for G20 countries to agree to a $500 billion annual stimulus for sustainable development. It remained unclear if the delegates would agree on a joint statement, given differences over the Ukraine war.
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