The Ghana International Trade and Finance Conference (GITFiC) has issued a position paper titled “Revisiting the Debt Burden on Developing and Least Developed Economies,” urging a prompt review of the Global Debt Initiative (GDI). The document calls for a comprehensive approach to addressing the debt challenges faced by developing and least-developed countries, involving multilateral agencies, private creditors, non-Paris Club countries, and multinational financial institutions.
This was announced by Mr. Selasi Koffi Ackom, the CEO of GITFiC, during a press briefing ahead of the 8th Ghana International Trade and Finance Conference, scheduled for September 6, 2024, in Accra.
The conference, themed “A Call for a New Global Financing Pact: Collaborative Pathways to Economic Resilience and Global Prosperity,” aims to explore the need for a new Global Financing Pact (GFP) and outline collaborative strategies for achieving economic resilience and prosperity.
Mr. Ackom emphasized that the call for a GFP is a direct response to ongoing debt challenges, with the conference focused on fostering collaboration among nations and institutions to promote economic stability and global prosperity.
“Historically, the global financial system has been shaped by fragmented initiatives led by a few powerful nations or institutions,” Mr. Ackom noted. “While these systems have driven growth in many regions, they have also deepened inequalities, increased vulnerabilities, and limited the ability of smaller economies to navigate economic challenges independently.”
He highlighted that the 2008 financial crisis and subsequent economic downturns have underscored the systemic risks associated with uncoordinated financial policies, emphasizing the need for a more integrated and collaborative global approach.
A key outcome anticipated from the conference is the development of a comprehensive framework for debt restructuring and relief, tailored to address the specific challenges faced by indebted nations. By leveraging collective expertise, participants aim to create innovative mechanisms that balance debt sustainability with the socio-economic needs of borrowing countries, fostering conditions for equitable growth and development.
Mr. Ackom also stated that the conference would stress the importance of implementing strong transparency measures, effective debt management practices, and governance frameworks. These efforts aim to mitigate risks, build trust among stakeholders, and ensure that resources are allocated efficiently to priority areas such as healthcare, education, and infrastructure.
“A call for a Global Debt Initiative through a New Global Financing Pact offers a transformative vision for reshaping the global economy, fostering collaboration, and promoting shared prosperity,” Mr. Ackom added. “By embracing principles of equity, sustainability, inclusivity, and resilience, and by adopting collaborative pathways that leverage multilateral cooperation, public-private partnerships, technological innovation, and capacity building, nations can forge a more resilient, equitable, and prosperous future for all. The time for action is now; the stakes have never been higher, and the opportunities for positive change are within our reach.”
Mrs. Ngone Diop, Director of the United Nations Economic Commission for Africa, commended GITFiC for organizing the conference and emphasized that the time had come for all indebted nations to unite and advocate collectively for economic transformation.