Finance and foreign ministers have called for the reforming of the international financial system to improve the prospects of developing countries at a just-concluded United Nations (UN) Member States meeting in Addis Ababa, Ethiopia.

Li Junhua, the Under-Secretary-General of the UN Department of Economic and Social Affairs (UN DESA) and Secretary-General of the FfD4 conference, stated, “The ministers, experts, and other stakeholders that gathered here in Addis Ababa made clear that we cannot continue with business as usual and must dramatically reshape the international financial system to ensure investment where it is most needed.”

The COVID-19 epidemic, geopolitical tensions, and economic instability are examples of global shocks that have increased the finance deficit for developing nations from US$ 2.5 trillion in 2015 to US$ 4 trillion yearly. Addis Ababa officials join President William Ruto of Kenya in calling for changes to the global financial architecture that will establish an equitable system. To address the underlying shortcomings in the global tax and finance systems, the officials advocated for drastic changes.

recommendations were presented by ministers and international experts to handle countries in debt crises and to restructure international taxation regulations and governance. One of the recommendations was to create new international institutions to deal with circumstances of sovereign debt default.

Mr. Claver Gatete, Executive Secretary of the United Nations Economic Commission for Africa, stated that “the international financial architecture created nearly 80 years ago needs to be reformed to respond to the most pressing challenges of African countries in a more effective and inclusive manner.” “African nations are assuming a leading role in advocating for modifications to international tax and financial frameworks, and they are aware that the international system must more effectively facilitate their goals for sustainable development.”

The meeting brought together representatives of at least 103 countries, including high-level representatives, as well as representatives of multilateral development banks, United Nations system entities, and other inter-governmental organizations, the private sector, and non-governmental organizations. Almost 800 participants discussed the full range of financing issues, including debt, taxation, trade, private finance, development cooperation, technology and data.