President Díaz-Canel participated in the High-Level Dialogue on Financing for Development, during the 78th General Assembly of the United Nations. Photo: Cuba Presidency

President Díaz-Canel participated in the High-Level Dialogue on Financing for Development, during the 78th General Assembly of the United Nations. Photo: Cuba Presidency

Speech by the President of the Republic of Cuba, Miguel Díaz-Canel Bermúdez, at the High-Level Dialogue on Financing for Development.

G77 Final Declaration at Interactive Roundtable 1 "Reforming the International Financial Architecture to Achieve the SDGs"

September 20, 2023

It is an honour for me to deliver this statement on behalf of the Group of 77 and China.

The High-Level Dialogue presents a valuable opportunity for open exchange, to reflect on the progress made in the implementation of the Addis Ababa Action Plan and to assess the most efficient ways to close the growing gap, mobilizing the political will and resources needed to achieve the Sustainable Development Goals by 2030.

The current financial architecture is not designed to provide the answers needed by the countries of the South. The inclusive reform of this architecture is a long-standing demand with the aim of fulfilling the principles and purposes of the Charter of the United Nations and international law.

Therefore, a step in that direction would be to re-design and re-capitalize the Multilateral Development Banks so that they can effectively assist developing countries as a whole.

However, even refinancing from the Multilateral Development Banks alone would not be enough to cover the needs of the 80% of the world's population, living in the Global South.

🎥| "The Group of 77 and China hopes that this dialogue will urgently foster the political will to implement what we all know is necessary to overcome one of the most complex crises humanity has witnessed in modern history#DíazCanelEnONU pic.twitter.com/RKh3ASlRBE."

— Presidency Cuba 🇨🇺 (@PresidenciaCuba) September 20, 2023

Immediate action is needed to urgently address the unsustainable external debt, which is dragging most developing nations into an economic abyss. An inclusive and effective solution, with the participation of all creditors, is needed immediately for countries of the South, particularly middle-income countries with billions of dollars of their own domestic savings, to invest in their development.

In addition, the rechannelling of unused Special Drawing Rights to developing countries and a reallocation of these Rights cannot continue to be delayed.

Third, the reform of the current governance system, created almost a century ago, does not reflect the reality of today's multilateral structures. This involves:

- Proceed to reform the governance structure of the International Financial Institutions, especially the International Monetary Fund, since the voting system based on economic or financial power is no longer sustainable.

- An improved global sovereign debt architecture with significant participation by developing countries;

- Inclusive and effective platforms for designing and debating international tax rules and regulations at the United Nations.

The international trading system also urgently needs decisive action through reforms. This should include that developed countries cease to artificially increase the burden of exporting to those markets for developing countries through unjustifiable and discriminatory tariffs, thus allowing space for developing countries to create modern industries that add value to their extractive and agricultural facilities.

Finally, the Group hopes that this dialogue will urgently foster the political will to implement what we all know is necessary to overcome one of the most complex crises that humanity has witnessed in modern history.

Thank you

(Cubaminrex)