Latest News

US rejects UN summit, but global leaders vow development push

The first ever summit of its kind began in Seville on Monday in scorching temperatures, with the world leaders increasingly under pressure to reduce poverty and limit

Climate change

Other key development goals are increasingly in danger.

U.N. Chief Antonio Guterres stated that the event was intended to "repair and rev up" an international system in which "trust is fraying, and multilateralism has been strained."

This was a jab at the most notable absence from the conference - U.S. president Donald Trump. The world's biggest economy and its traditional largest aid donor, refused to take part in the conference after refusing to support the summit's action plan hammered over the past year.

Emmanuel Macron, the French president, also took a shot at his American counterpart. He called the decision to launch a trade conflict at a time of such stress on the planet "an aberration".

Barbados, Kenya France, Spain, and other countries made a series of announcements, including a plan to tax private jets, first class flights, and luxury cars.

Guterres said that the Seville Commitment, at the core of the event, was a global promise to change the way the world supports the poorer countries.

Pre-summit

"outcomes"

The agreement included a tripling of multilateral lending, debt relief, an effort to increase tax-to GDP ratios to 15% or more, and a shift of special IMF funds to countries in greatest need.

Macron said that the World Bank, and other leading development banks, should be willing to sacrifice their high credit ratings in order to achieve these targets.

Macron stated that multilateral development banks who "wish to maintain their triple-A credit rating without using guarantees instruments are wrong." "They must do more with their balance sheet."

SYSTEM OVERHAUL

Guterres stated that more than $4 trillion in funding per year is needed, and the key financial infrastructure of the world needs to be quickly retooled to make this happen.

Guterres also said that the world development banks need to be reformated to increase their lending and attract private capital.

This was tied to the need to reform credit rating systems around the world to make them fairer for developing countries who are trying to invest in projects to improve their fortunes.

Guterres stated that "countries need and deserve" a system which lowers borrowing rates, allows fair and timely restructuring of debt and prevents debt crisis in the first instance. He cited a plan for creating a single debt register to increase transparency and efforts to reduce the cost capital through debt swaps.

(source: Reuters)