President Ramaphosa warns that the decline of multilateralism poses risks to global stability and economic growth at the G20 finance meeting in Cape Town. With absent US officials amid accusations of anti-Americanism, he stresses cooperation to resolve pressing issues like climate change and debt burdens in poorer nations. The discussion also emphasizes national security’s role in economic strategies, particularly among leading economies.
At a G20 finance meeting in Cape Town, President Cyril Ramaphosa emphasized the declining multilateralism and its implications for global stability and economic growth. He expressed that a rules-based international order is crucial for dispute management during times of geopolitical tensions. The meeting occurred against a backdrop of absent key US officials, reflecting ongoing diplomatic strains since the election of President Donald Trump, particularly after accusations of an “anti-American” agenda by US politicians.
Ramaphosa urged that multilateral cooperation is essential to tackle widespread challenges including slow economic growth, rising debts, pervasive poverty, inequality, and the urgent peril of climate change. He highlighted South Africa’s G20 presidency theme, “Solidarity, Equality, Sustainability,” which aims to prioritize global collaboration during crises.
The meeting attracted finance ministers and senior officials from various countries amid discussions focused on enhancing the resilience of poorer nations against climate-induced disasters, necessitating innovative financing mechanisms for disaster prevention and recovery. Ramaphosa also raised concerns about the growing sovereign debt burdens on low- and middle-income countries, which restrict their spending capabilities in critical sectors like education and health.
Furthermore, UK Finance Minister Rachel Reeves pointed out the need for increased defense spending in light of global security challenges, which is now a governmental priority for economic stability. Concurrently, the UN Development Programme drew attention to the growing debt service payments in vulnerable countries, which require immediate structural reforms to the borrowing systems internationally, with some countries expending over 10% of their revenues on interest payments.
The G20, comprising the world’s largest economies accounting for about 85% of global GDP, seeks to address international financial stability amidst these ongoing issues.
In conclusion, President Ramaphosa’s statements at the G20 finance meeting highlight a critical juncture for multilateralism. The growing geopolitical tensions and absence of significant US participation could undermine global economic frameworks. The need for collective international responses to economic and environmental challenges has never been more urgent, particularly for developing nations facing mounting debts and disaster resilience issues.
Original Source: www.france24.com
