UN NEWS: “They touch on some of the most serious challenges we face – challenges that may determine whether we are able to achieve the vision of the 2030 Agenda and the Sustainable Development Goals, or whether we continue towards a future of continued social, financial, political and environmental breakdown,” he said.

The briefs are intended to inform discussions ahead of the crunch SDG Summit in September, marking the midpoint towards achieving the Goals, and the related Summit of the Future next year.

They are the latest in a series of 11 briefs based on proposals contained in Our Common Agenda, the Secretary-General’s 2021 report that outlines a vision for future global cooperation and multilateral action.

Mr. Guterres has frequently spoken about the need to reform the international financial architecture to make it more resilient, equitable, and accessible to all.

The current system, established under the Bretton Woods Agreement nearly 80 years ago – “when many of today’s developing and emerging economies were under colonial rule” – is supposed to represent the world but doesn’t, he said.

The COVID-19 pandemic and its aftermath also revealed how the system “largely failed” in fulfilling its core mandate as a financial safety net, with many developing countries now facing deep financial crisis and debt relief at a standstill.

“Africa now spends more on debt service costs than on healthcare,” he remarked. The policy brief sets out proposals to address historic injustices and systemic bias and covers six areas, including global economic governance, debt relief and the cost of sovereign borrowing, and international public finance. 

“Overall, the proposals in the brief are aimed at moving away from a system that benefits the rich and prioritizes short-term gains, towards one that is equitable, and invests up-front in the SDGs, climate action, and future generations,” he said.

Measures put forward include expanding the boards of the World Bank and the International Monetary Fund “to strengthen the voice and representation of developing countries”.

There should also be “a representative apex body” overseeing the entire system, to enhance its coherence and align priorities with the 2030 Agenda, as well as a Debt Workout Mechanism which would link development financing with commercial creditors.  

Another proposal calls for “the massive scaling up of development and climate financing, in part by changing the business model of multilateral development banks and transforming their approach to risk, to massively leverage private finance at reasonable cost to developing countries.”

Turning to the second policy brief, Mr. Guterres noted that although GDP will continue to be an important metric, it must be accompanied by other ways to measure progress.

“There is a growing recognition that GDP overlooks human activities that sustain life and contribute to well-being, while placing disproportionate value on those that damage us and deplete our planet,” he said. “Human progress depends on many factors, from levels of poverty and hunger, to inequality and social cohesion, and vulnerability to climate breakdown and other shocks,” he explained.