In Paris, representatives from around 100 countries, international development banks and organizations are discussing how climate protection and poverty reduction can be tackled through new financial efforts.
French President Emmanuel Macron warned: “No country should have to choose between reducing poverty and protecting the planet.” UN Secretary-General António Guterres said at the meeting that there is no need to wait for major reform, but that action can be taken now and take a giant step towards global justice.
International financial system to be reformed
The two-day meeting initiated by Macron is about consultations on a more solidarity-based financial system. Binding decisions should not be made, but guidance on how to bridge the growing gap between the industrialized countries and the countries of the Global South, which are particularly affected by the consequences of climate change, was expected.
As Macron said before the meeting, it is about reforming the financial system with the World Bank, the International Monetary Fund (IMF) and public and private funds to address the twin challenges of poverty and climate change.
French President Emmanuel Macron is hosting the International Financial SummitImage: Ludovic Marin/AFP/Getty Images
In a joint contribution to the Paris summit, 13 heads of state and government, including Chancellor Olaf Scholz, US President Joe Biden, EU Commission President Ursula von der Leyen and British Prime Minister Rishi Sunak, emphasized their commitment to improving the well-being of the world‘s population. “We are convinced that a just ecological transition that leaves no one behind can be an important factor in fighting poverty and supporting sustainable and solidarity-based development.” Long-term investments would have to be made all over the world and solutions found for heavily indebted countries.
Tackling poverty and tackling climate change would require innovative financing, debt buybacks and accountability for the sectors that have benefited most from globalization. “Solidarity and joint action are at the heart of our cooperation to alleviate the difficulties facing developing countries and achieve our global goals,” said the statement, published by Le Monde newspaper.
In Kenya, a number of animals are dying due to the drought caused by climate changeImage: Thomas Mukoya/REUTERS
Macron: More public and private investment is needed
Specifically, the summit is about investments in countries particularly affected by climate change. In view of rising inequality, Macron insisted on significantly more public and private funds. So far, not enough has been done in both areas. “Without the private sector, we will not meet this challenge.”
The development organization One demanded from the meeting that economically weak countries should receive easier money to deal with crises. So far, the conditions for lending to these countries have often been unfairly regulated. The federal government must put pressure on reforms of development institutions such as the World Bank.
Dealing with national debt must be reformed
Dealing with debt will also be discussed at the summit. France’s economy minister, Bruno Le Maire, said on RFI that the debts in extremely poor countries with excessive debt would have to be restructured. “We want to do that together with our Chinese partners.” With a view to Sri Lanka and Zambia, they are currently close to finding an agreement.
High national debt is driving people in Sri Lanka into abject povertyImage: Kim Kyung-Hoon/REUTERS
Together with Japan and India, France had launched a negotiation platform among Sri Lanka’s creditor states. In April, however, it was still unclear whether China, as the largest bilateral creditor, would join the process. Sri Lanka had foreign debts of $35.1 billion as of September last year. According to the Japanese Ministry of Finance, 19 percent of this was in China, seven percent in Japan and five percent in India.
as/uh (dpa, rtr)