Madam Chair,
Excellencies,
Colleagues,

1. I have the honour to deliver the statement on agenda item 16 and 17 on behalf of the G77 and China.

2. The global financial system and economic architecture agreed at the 1944 Monetary Financial Conference was intended to strengthen the financial and economic stability of states, mitigate the risk of mutually destructive trade and economic behavior, foster cooperation for shared enlargement of growth and prosperity and guarantee sufficient space to governments to tailor their policies to local circumstances.

3. At the Bretton Wood Conference, the United State President Roosevelt stated at the “Economic Diseases are highly communicable. It follows therefore that the economic health of every country is a proper matter of concern to all its neighbors, near and distant.

4. Unfortunately, these arrangements were negotiated in the absence of majority of developing countries which were then still under colonial and foreign rule. As the UN Secretary-General has stated, the global structure was negotiated “by the rich for the rich”.

5. Over the past 7 decades, the inequality of these arrangements has been visible. Whatever the analysis, the fact that the incomes gap between the industrial and developing countries has grown significantly wider.

6. Numerous efforts have been made, principally at the U.N. and its related organizations, like UNCTAD, to reform the Bretton Woods and WTO regimes to induct greater equality and inclusion.

7. Most may or may not recall the UN’s Industrial Development Strategies or the New International Economic Order, solemnly adopted by the UN General Assembly and the ECOSOC. These agreements proved unsuccessful in changing the original Bretton Woods structures.

8. Following the targeted approach of the MDBs, the UN led the way for the adoption of the SDGs under Agenda 2030. These SDGs and accompanying targets provide a comprehensive framework for national and international action.

9. Their implementation is broadly measurable. While there is national commitment to the SDGs by the developing countries – visible in their development plans and the VNRs, the level of international support required – detailed in the Addis Ababa Action Agenda – has fallen short – even before the Covid-19 pandemic.

10. The series of recent external “shocks” to the world economy – the Covid-19 pandemic, the spike in the prices of commodities and goods, triggered by supply chain disruption and excess liquidity injected in the hard currency economies, the growing frequency and intensity of the impacts of climate change and, finally, the geopolitical tensions and accompanying disruptions due to trade and financial restrictions – have had a disproportionate impact on the poorest countries and the poorest people in all countries.

11. The unequal impacts have been accompanied by a deficit in solidarity – as visible on vaccine availability and the liquidity support – $17 trillion generated in the richer, less than $100 billion for the developing world. And, now interest rates are rising; third world currencies depreciating; money flowing out of the developing countries to the richer economies; and the global economy may dive into another depression.

12. As a consequence, poverty has enlarged, with over 100 million pushed back into extreme poverty. The developing countries now face the triple challenge of meeting their needs for food, fuel and finance. Over 50 developing countries are in debt distress, and many may be obliged to default. Meanwhile, climate change continues to take its heavy toll.

13. We commend the efforts being made by the UN Secretary-General and others to ameliorate plight of the poorest and most vulnerable. But, as yet, there is no clear road map to overcome the development emergency much less to redress the systemic deficiencies of the global economy to rebalance the relationship between capital, labour and the environment to promote prosperity for all.

Madam Chair,

14. The Group of 77 believes that we must identify the specific goals and outcomes for the achievement of the SDGs during the remaining decade of action:

One, welcome the “SDG stimulus” proposed by the UN Secretary-General, including through creation of new SDRs and re-allocation of unutilized SDRs to developing countries; multiplied lending by the MDBs, especially its concessional financing.

Two, a far and early solution to the debt distress of nearly 60 developing countries through effective operation of the G-20’s Common Framework and Bilateral arrangements, encompassing all public and private creditors.

Three, the mobilization by COP27 of at least $100 billion in climate finance, with half allocated to adaptation, accompanied by a financing facility for “loss and damage”.

Four, a review of the role of credit-rating agencies, with a view to reduce reliance on subjective, mechanistic evaluation of risk and consideration of measures to adapt their criteria to the unprecedented circumstances of the Pandemic.

Five, focused efforts to mobilize investment of upto $ 1 trillion annually in quality, reliable, sustainable and resilient infrastructure in developing countries, including by mobilizing private finance through “risk reduction mechanisms, and assistance to developing countries through UN and MDB country-offices to prepare viable SDG and climate aligned infrastructure projects.

Six, discussion on a fair and inclusive tax regime that is developed through intergovernmental processes.

Seven, a reform of the international trading system which should contribute to the achievement of the SDGs through export led growth in the developing countries by inter-alia, enlarging preferential trade access for developing countries, providing policy space for industrialization through flexibility from TRIPS and TRIMS Agreements, and eliminating trade barriers a that are incompatible with the WTO.

Eight, we should seek an equitable international information technology regime which bridges the digital divide and enables the developing countries to “leapfrog” into the global digital economy of the future.

Nine, imposition of unilateral coercive economic measures against developing countries, that are inconsistent with the principles of international law and the Charter of the United Nations, does not contribute to economic and social development, including dialogue and understanding among countries, and impede the capacity of targeted countries to respond efficiently in the face of the COVID 19 pandemic and to promote post-pandemic recovery.

Therefore, we reiterate the urgent need to eliminate them immediately.

I thank you.