Perspectives
Asserting UN authority
by Martin Khor, executive director of the South Centre
This article was first published by Development & Cooperation
The United Nations summit on the economic crisis in New York in June was path breaking, even though it failed to take immediate measures to help developing countries cope with current economic turmoil. However, there was consensus on several important issues, and an open-ended working group involving all parties has been set up to draft reforms. This working group is to report to the next session of the General Assembly, which will begin in September next year.
The working group has an opportunity to make the UN an – if perhaps not the one – venue for discussing global economic issues. This is an important step forwards, because the G8 and the G20 lack legitimacy, given that they include only a small number of countries. So far, however, the industrialised world is dragging its legs. It was telling that the UN debate had little bearing on the G8 summit in Italy in July. The governments of developing countries will have to ensure that the topics that relate to the global economic crisis stay on the multilateral agenda.
The developing countries did not cause the turmoil they are now suffering from. In 2009 alone, they face a massive shortfall in external financing of up to $ 2 trillion. Many countries will soon run out of foreign exchange to pay for imports or service their foreign debts. It is therefore most urgent to provide them with additional funds. (Read more)
