UN leader wants Security Council reform, Bretton Woods. U.N. Secretary-General Antonio Guterres called for revising the Security Council and Bretton Woods to reflect the “realities of today’s world.”
Guterres said both institutions reflected 1945 power relations and needed to be modernized at a press conference in Hiroshima, Japan, where the Group of Seven summits was placed.
“The global financial architecture became outdated, dysfunctional, and unfair,” he remarked. “In the face of economic shocks from the COVID-19 pandemic and the Russian invasion of Ukraine, it has failed to fulfill its core function as a global safety net.”
Guterres also noted that poor countries at the G7 conference were becoming aware that insufficient was being done to overhaul old institutions or “remove the frustrations” of the Global South.
The International Monetary Fund’s January World Economic Outlook predicted 6% growth for India this year and next.
Pierre-Olivier Gourinchas, IMF chief economist and research director, predicted that China and India would account for 50% of global growth in 2023.
According to the IMF, the affluent G7’s share of global GDP dropped from 50.7% in 1980 to 29.9% in 2023.
“We will see now what the impact of the discussions that were held here in Hiroshima,” Guterres added. “The G7 members were able to discuss with some of the most important emerging economies in the world.”
Hiroshima hosted a G7 meeting with Global South leaders. Narendra Modi, Lula da Silva, and Widodo were invited.
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