Paris Summit – World Leaders Unite For A New Global Financing Pact

Zaheer Hussain
July 1, 2023
491

Around 50 heads of state, as well as representatives from international institutions, are attending the two-day summit in Paris hosted by the French President for a new global financial pact. Macron stated in his opening remarks that the world requires “public finance shock” to combat new challenges, adding that the current system is not well suited to do so. “Policymakers and countries should never have to choose between poverty reduction and environmental protection,” Macron added.

Why In The News?

Around 50 Heads Of State, Along With Representatives From International Institutions, Are Attending The Two-Day Summit For A New Global Financial Pact Hosted By The French President In Paris.
In His Opening Remarks, Macron Said World Needs “Public Finance Shock” To Fight New Challenges, Adding The Current System Was Not Well Suited To Do So. “Policymakers And Countries Shouldn’t Ever Have To Choose Between Reducing Poverty And Protecting The Planet,” Macron said.

About The Summit

The Paris Summit For A New Global Financing Pact Took Place On June 22 And 23, With The Secretary-General Of The United Nations Present To Advocate For A Reform Of The International Financial System, Which Is Not Currently Equipped To Tackle Present-day Challenges.
According To Secretary-General Antonio Guterres “Today’s Poly-Crises Are Compounding Shocks On Developing Countries – In Large Part Because Of An Unfair Global Financial System That Is Short-term, Crisis-prone, And That Further Exacerbates Inequalities.”
The Summit Is Co-organized By France And India, With The Latter Holding The Presidency Of The G20 This Year. The Aim Of This Summit Is To Concurrently Tackle The Challenges Of Climate Change, Biodiversity Protection, And The Fight Against Inequality In Order To Achieve The SDGs.

Reversal Of Human Development

The Summit Is Taking Place In A Unique International Context In 2022, The United Nations Noted A Reversal Of Human Development In Nine Out Of Ten Countries Across The Globe, Primarily Driven By A Decrease In Life Expectancy And A Rise In Poverty.
The COVID-19 Pandemic And The Conflict In Ukraine, Along With Their Consequences, Have Indeed Reduced The Income Of Many Countries, Affecting Their Ability To Finance Their Populations’ Access To Basic Social Services.
Countries In The Global South, Which Pollute Less Than The Rest Of The World, Are The Most Threatened By The Climate Crisis. In 2022, Natural Disasters Cost Over $300 Million, Heavily Weighing On Their Economies.
As A Result, The ‘Great Financial Divide’ Continues To Widen, Leaving The Countries In The Global South More Sensitive To Shocks.
Developing Countries Lack The Urgently Needed Resources To Invest In Recovery, Climate Action, And The Sustainable Development Goals.
Which Puts Them Even Further Behind In The Event Of The Next Crisis – And Even Less Likely To Benefit From Future Transitions, Including The Green Transition.

Strengthen Solidarity With The Global South

The Summit Will Focus On Discussing Various Ways To Enhance Financial Solidarity With Countries In The Global South. Its Main Objectives Include Creating Fiscal Space, Promoting Private Sector Development, Fostering Green Infrastructure Investment, And Generating Innovative Financing For Countries Vulnerable To Climate Change.
This Summit Is One Among Numerous International Events Scheduled Throughout The Year, Such As The G20, The SDG Summit, And COP28. These Events Are All Designed To Drive The Achievement Of Tangible, Impactful Results.

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