During a summit involving Southeast Asia’s ASEAN bloc, China, the United States, and other nations in Indonesia, U.N. Secretary-General António Guterres issued a warning on Thursday about the world facing a potential “great fracture” in its economic and financial systems.
Guterres, in a comprehensive address that touched on geopolitical tensions, multilateral development finance, and climate change, urged world leaders to seek peaceful and inclusive resolutions to global challenges. He emphasised the risk of fragmentation, highlighting diverging strategies in technology and artificial intelligence, as well as conflicting security frameworks.
The U.N. Secretary-General proposed the establishment of a mechanism to offer relief to debt-burdened developing economies, encompassing debt payment suspensions, extended lending terms, and reduced interest rates. He also expressed support for redirecting an additional $100 billion of the International Monetary Fund’s Special Drawing Rights through multilateral development banks to enhance liquidity and aid the requirements of developing economies.
In 2021, affluent countries agreed to redirect unused funds, an international reserve currency, to assist poorer nations. Furthermore, at a Paris summit in June of the current year, global leaders backed an initiative for multilateral development banks such as the World Bank to increase capital exposure to bolster lending.
Guterres underscored his deep concern about the deteriorating political, humanitarian, and human rights situation in Myanmar, a nation mired in conflict since a military coup in 2021. He reiterated his urgent appeal to the military authorities in Myanmar to heed the aspirations of their citizens, release all political detainees, and pave the way for a return to democratic governance.
In a statement released on Wednesday, Indonesia, the chair of ASEAN, expressed “grave concern” about the lack of substantial progress on their five-point peace plan for Myanmar. ASEAN leaders are scheduled to engage in discussions with the United Nations later on Thursday.
