3.4 billion people live in countries that pay more for public debt than for health or education. The UN chief sounded the alarm
UN Secretary General, Antonio Guterres, Photo: Enrique Shore / Alamy / Alamy / Profimedia
The rules-based international trading system is at risk, United Nations (UN) Secretary-General Antonio Guterres said on Wednesday amid mounting debt, high tariffs and financial insecurity in emerging nations, reports AFP.
Guterres said 3.4 billion people live in countries that spend more on debt service than on health or education.
He called for lower borrowing costs and risks, as well as faster support for countries facing debt difficulties.
“Global debt has skyrocketed. Poverty and hunger are still present. The international financial architecture does not provide an adequate safety net for developing countries. And the rules-based trading system is at risk of derailment,” the official told the UN Conference on Trade and Development in Geneva.
According to the UN chief, trade and development are facing a “whirlwind of change” – three-quarters of global growth now comes from developing countries, trade in services is growing and new technologies are driving the global economy.
However, progress is limited by geopolitical divisions, inequalities, conflicts and the climate crisis, Antonio Guterres added.
In addition, US President Donald Trump's administration has imposed extensive tariffs on other nations, sparking trade tensions globally.
“A growing risk of trade wars over goods”
Guterres acknowledged that “protectionism might be, in certain situations, inevitable,” but, he stressed, “it should at least be rational.”
The UN chief warned that developing countries “continue to be disadvantaged” as uncertainty rises, investment retreats and supply chains experience “turbulence”.
“We see a growing risk of trade wars over goods,” while “military spending trends show that we are increasingly investing more in deaths than in people's prosperity and well-being.”
In the face of these dangers, Guterres outlined four priorities for international action: a “fair global trade and investment system,” financing for developing countries, technology and innovation to boost the economy, and aligning trade policies with climate goals.
The UN Secretary General also believes that global financial institutions need reform to better represent the needs of developing countries. He welcomed efforts to close the digital divide between rich and poor nations.
