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Addressing the United Nations General Assembly last week, the President of the African Development Group, Dr. Akinwumi Adesina, spoke on the global financial architecture and how it should be reformed to effectively serve developing nations.
The global financial architecture is a policy set in place by the UN to safeguard the stability and function of the global monetary and financial systems. “The global financial architecture is constraining Africa’s development, the President of the African Development Group informed
He provided ways in which the policy could be made fairer.
Mr. Adesina emphasized the considerable possibility of rechanneling the International Monetary Fund’s Special Drawing Rights (SDRs) in novel ways. This method is critical, given that Africa now receives just 4.5% of the IMF’s issued #SDRs. A $25 billion SDR rechanneling may generate an extra $100 billion in finance for Africa, all at no cost to taxpayers in donor nations and with no danger of loss.
Along with this crucial move, Mr. Adesina provided a complete set of policies, including leveraging private sector funding, improving #ClimateFinancing, and boosting Multilateral Development Bank capital.
“To achieve a fair, more just, and equitable world, we must change the structure, conduct, and performance of the global financial architecture.
Our collective future depends on it!” He concluded.