Developing Countries Face Cascading Crises Amid Pandemic Recovery Efforts

Strategic Insights -

The United Nations General Assembly's Second Committee recently began its general debate, where Pakistan, speaking for Group of 77 (developing countries) and China, highlighted the pressing need to address the challenges of recovering from the COVID-19 pandemic, financing Sustainable Development Goals (SDGs), fighting poverty, and combating the impacts of climate change. Ambassador Munir Akram, Permanent Representative of Pakistan to the UN, underscored the heightened vulnerabilities of countries and people around the globe, citing high inflation, food insecurity, unsustainable debt burden, and climate change as examples of the issues faced by the developing world. The G-77 chairman proposed several measures to address current challenges, including the expansion of concessional financing, reduction of borrowing costs, and mobilization of at least $1 trillion annually for sustainable infrastructure investment.

Key Takeaways:

  • Pakistan, speaking for Group of 77 (developing countries) and China, emphasized the need to address the challenges of recovering from the COVID-19 pandemic, financing SDGs, fighting poverty, and combating climate change.
  • Ambassador Munir Akram highlighted the debilitating effects of climate change, which have heightened the vulnerabilities of countries and people around the globe.
  • High inflation, food insecurity, unsustainable debt burden, disruption in supply chains, currency fluctuations, increased borrowing costs, and unilateral coercive measures are examples of the issues faced by the developing world.
  • The G-77 chairman proposed several measures to address current challenges, including the expansion of concessional financing, reduction of borrowing costs, and mobilization of at least $1 trillion annually for sustainable infrastructure investment.
  • The number of undernourished and hungry has grown, with the rich getting richer and the poor becoming poorer.
  • The 26 richest people own half the world's wealth, highlighting the crisis of inequality.
  • The G-77 chairman emphasized the need for structural reforms, reduced borrowing costs, and preferential trade access for developing countries.

Statistics:

  • The G-77 has 134 members, making it the United Nations' biggest intergovernmental group of emerging countries.
  • 26 richest people own half the world's wealth, according to Ambassador Akram.
  • At least $500 billion in new Special Drawing Rights (SDRs) is proposed to be allocated.
  • Mobilization of at least $1 trillion annually is proposed for investment in sustainable infrastructure for developing countries.
  • Pakistan highlighted the need for at least $1 trillion annually for investment in sustainable infrastructure.
  • Fulfillment of the development countries' pledge of $100 billion annually towards climate finance and to at least double climate finance towards adaptation is proposed.
  • The proposed allocation of $500 billion in new Special Drawing Rights (SDRs) is aimed at supporting developing countries in their recovery efforts.

Sources:

  • United Nations General Assembly's Second Committee (Economic and Financial)
  • Ambassador Munir Akram, Permanent Representative of Pakistan to the UN
  • Group of 77 (G-77) and China
  • United Nations' Charter of the United Nations