UN slams rich countries
DOHA – UN leader Antonio Guterres yesterday slammed the world’s rich countries and energy giants for throttling poor nations with ‘predatory’ interest rates and crippling fuel prices.
Guterres told a summit of the most deprived states on the planet that wealthy nations should provide US$500 billion a year to help others ‘trapped in vicious cycles’ that block their efforts to boost economies and improve health and education.
The summit of the 46 Least Developed Countries (LDCs) is normally held every 10 years, but has twice been delayed since 2021 because of the Coronavirus pandemic. Afghanistan and Myanmar, two of the poorest countries, are not present at the meeting in Doha because their governments are not recognised by UN members.
No leader from any of the world’s major economies attended. At the summit opening, Guterres hit out straight away at the way poor nations are treated by the more powerful. “Economic development is challenging when countries are starved for resources, drowning in debt, and still struggling with the historic injustice of an unequal COVID-19 response,” he said.
The LDCs have long complained that they did not get their fair share of the COVID-19 vaccines that were concentrated on Europe and North America. “Combatting climate catastrophe that you did nothing to cause is challenging when the cost of capital is sky-high” and the financial help received “is a drop in the bucket,” said Guterres.
“Fossil fuel giants are raking in huge profits, while millions in your countries cannot put food on the table.”
Guterres said the poorest nations were being left behind in the ‘digital revolution’ and the Ukraine war had only increased prices they pay for food and fuel. “Our global financial system was designed by wealthy countries, largely to their benefit. Deprived of liquidity, many of you are locked out of capital markets by predatory interest rates,” the UN leader said.
Wealthy nations had failed to keep a promise to give 0.15-0.20 per cent of their Gross National Income to LDCs.
With poorer states trapped in a ‘perfect storm for perpetuating poverty and injustice’, Guterres said LDCs required a ‘minimum’ US$500 billion a year to help overcome their problems, build-up job creating industries and repay debts.
Malawi’s President Lazarus Chakwera, the summit Chairperson, also hit out at the ‘broken promises’ made by the international community. He said that aid was ‘not a favour or an act of charity’ but a ‘moral responsibility’.