September 27, 2022 | By Colin O. Jarrett |
Prime Minister of Barbados Mia Mottley has urged world leaders to “use the power of the pen” and impose natural disaster and pandemic clauses in developing countries’ debt as well as remove the current barriers to accessing financial assistance from multilateral development banks.
During her speech at the UN General Assembly, Miss Mottley spoke extensively about the need to reform the ageing global financial architecture to better reflect today’s realities, for instance making it easier to climate-stricken countries to access capital.
She said the Bretton Woods Agreement that gave rise to the World Bank and the International Monetary Fund “no longer serve the purpose in the 21st century that they served in the 20th century”.
She called for a global compact establishing that financing for development cannot be short-term, but instead should be at least a 30-year loan.
She also argued that Germany was allowed to cap its debt payments at the equivalent of 5% of its exports under the premise that the calamity experience of a war would not allow them to finance reconstruction while repaying debts incurred during the war.