The Summit of the Future is an opportunity to mend eroded trust in multilateralism and create hope for a better tomorrow, says UN Trade and Development chief Rebeca Grynspan.
Multilateralism ensures fair global governance for developing nations.
Global debt reform is urgently needed to prevent future crises.
The United Nations Summit of the Future is key to reshaping global finance for sustainability.
The need for effective multilateralism has never been more urgent amid dramatic economic changes, climate emergencies and geopolitical shifts.
As world leaders gear up for the Summit of the Future, set to take place on 22 and 23 September at United Nations Headquarters in New York, a top challenge is to address structural weaknesses in the international financial systems, particularly those affecting developing nations.
Before heading to the summit, UN Trade and Development (UNCTAD) Secretary-General Rebeca Grynspan sat down for an interview with the UN Library in Geneva, spelling out what’s at stake and why global action cannot wait.
The importance of multilateralism in global governance
Multilateralism is essential for creating a rules-based international system where all countries, regardless of size or power, have a voice. Without it, the alternative — fragmentation and a power-dominated scenario — leaves smaller nations vulnerable to exploitation and exclusion.
The world is facing a deficit of both trust and hope, the UNCTAD chief said, but the upcoming summit will be a once-in-a-generation opportunity to enhance cooperation and strengthen global governance for the sake of present and future generations.
For developing countries, multilateralism is a necessity, ensuring their interests are safeguarded and global governance remains inclusive and fair.
“The Summit of the Future is an opportunity to build trust in the multilateral system, but also to create hope that we can do things differently and better for the populations of the world.”
Fixing structural flaws in global financial systems
A key issue at the Summit of the Future is the urgent need for reforms in the global financial architecture. The current framework, established decades ago, no longer meets the needs of today’s economy. Developing nations struggle with outdated financial structures that don’t account for their unique circumstances.
One focus of the summit will be establishing a stable, permanent institutional framework for managing global debt. Past ad hoc approaches have been insufficient in addressing the systemic challenges developing countries face. A more equitable system is needed to ensure all nations have the liquidity to respond to economic shocks and invest in sustainable development.
Resolving the debt crisis
The COVID-19 pandemic has deepened the global debt crisis, with nearly 40% of developing nations facing severe debt problems and 3.3 billion people living in countries that spend more on debt servicing than on essential services like education or healthcare. This crippling debt hampers their ability to achieve the Sustainable Development Goals and leaves them vulnerable to future crises.
At the Summit of the Future, a comprehensive approach to debt relief and restructuring must be agreed upon. This includes establishing a transparent, stable, and inclusive debt management system that prioritizes the most vulnerable nations. By doing so, future debt crises can be averted, and a more resilient global economy can emerge.
The future of trade and development
As global trade evolves, with increasing South-South trade, digital services, and green goods, developing countries must not be left behind. The rise of the Global South offers both challenges and opportunities for sustainable development. To fully capitalize on these opportunities, efforts are needed to integrate these nations into global value chains, promoting long-term growth.
UN Trade and Development can play an important role in this process by advocating for policies that reduce trade imbalances and promote inclusive growth. This includes pushing for a more flexible and fair multilateral trading system that addresses the specific challenges faced by developing countries.
Creating a more inclusive multilateral system
The future of global governance hinges on building a more inclusive and representative multilateral system. Reforming institutions like the International Monetary Fund and the World Bank to better reflect today’s realities is critical. Developing countries must have a stronger voice in these institutions, and their needs must be prioritized in global financial policies.
The Summit of the Future offers a unique opportunity to address these issues and set the stage for a more equitable and sustainable global economy. By committing to reforms that enhance inclusivity, equity, and sustainability, global leaders can ensure that the benefits of globalization are shared more broadly and that all nations can fully participate in the global economy.
Path forward
As we approach the Summit of the Future, the stakes are high. The decisions made will shape the future of global governance and determine whether the Sustainable Development Goals can be achieved by 2030. By prioritizing multilateralism, addressing global debt, and reforming international financial structures, we can create a world where all nations thrive. The time for action is now, and the international community must rise to the challenge to build a more inclusive future for all.
