Haddad demands actions and concrete results from emerging nations in the G20

In his first participation in a G20 meeting, the group of the 20 most developed countries, the Minister of Finance, Fernando Haddad, called for greater attention and concrete actions for emerging and developing nations in a speech this Friday (24th), in Bangalore , in India.

Haddad stated that the Brazilian government intends to work more closely with the group’s countries to “rebuild our international presence”, mainly in economic and financial matters.

“We will work with this group to promote understandings based on inclusion and a sustainable future for peoples and nations,” he said in reference to the group’s presidency, which will be exercised by Brazil from 2024.

Despite the optimism in reestablishing diplomatic relations with the largest economies, Haddad said that the largest economies need to take more concrete actions for the challenges faced by emerging nations, such as “multidimensional crises, consequences of the pandemic, wars, conflicts, increased poverty, inequalities and obstacles to affordable food and clean energy supplies”.

“In this context, increasing dialogue between the major economies is important, but not enough. We need actions with concrete results, ”he said.

The minister also called for deepening discussions on “reforms in multilateral development banks that reinforce their role in forming partnerships and channeling resources to deal with the climate, food and poverty nexus.”

According to Haddad, these institutions must be well capitalized and flexible “to support developing countries with long-term financing, adequate interest rates and innovative structures to reduce risks, encourage public-private partnerships and attract private investment”.

Russia’s war against Ukraine, which turns one year old this Friday (24), was also mentioned indirectly in the minister’s speech, who recalled that all countries needed to raise their interest rates to hold back the rise of inflation, but that this affected directly to less developed economies.

“We are concerned about debt levels, especially among the poorest countries. The rise in interest rates in the midst of the fragility of the world economy aggravates the scenario, ”he said.

development and climate

The climate agenda was also present in the finance minister’s speech at the G20 meeting in India. Haddad praised the citation by the Indian presidency of the meeting “for its priorities in sustainable finance and urban infrastructure”, and stated that Brazil “defends that the debates consider the specificities, in particular those of developing and emerging countries, which have different economic and social challenges and priorities”.

“Climate finance is more expensive and presents higher risk rates for these countries, which makes it difficult to achieve carbon emission reduction targets,” he said.

Haddad stated that it is essential that developed countries comply with the commitments established by the Paris Agreement and the ambition declared in Glasgow and Egypt, including increasing resources for mitigation and adaptation to low-carbon economies. “In the Brazilian case, I would like to highlight President Lula’s renewed commitment to end deforestation by 2030”.

“In infrastructure, investments in cities are fundamental to support a balanced and inclusive development, based on sustainable low-carbon solutions that respect nature”, he concluded.

Fernando Haddad traveled to India on Wednesday (22nd) with the president of the Central Bank, Roberto Campos Neto, to start rapprochement with the G20 countries. This Friday (24th), the minister will have bilateral meetings with Sérgio Massa, finance minister of Argentina; Enoch Guandongwana, finance minister of South Africa; and Nádia Calvino, finance minister of Spain.