On the evening before the so-called summit for a New Global financial Pact, French President Emmanuel Macron met with his colleague from Chad, Mahamat Idriss Deby Itno, for a discussion. This meeting took place on Wednesday, June 21.
Restructuring debt and reducing poverty through the realignment of the United Nations’ Sustainable Development Goals for 2030 will be the main points of the agenda. Despite this, the climate will be the primary focus of the summit that will take place on Thursday, June 21, and Friday, June 22.
Additionally, Macron welcomed Gabon’s President Ali Bongo at the Elysee Palace during his visit. Approximately fifty heads of state and government are gathering in Paris for these discussions, and he is one of them.
Participants will include not only influential figures in the financial sector but also campaigners from all across the world. All parties involved will look into measures to reform global development banks like the International Monetary Fund (IMF) and the World Bank and assist these institutions in continuing to function in the face of the climate crisis, which has further exacerbated the precarious financial situation of developing nations.
Organisations such as the International Monetary Fund (IMF), which has been attacked for taking too long to make credit decisions, have been accused of failing to take into account the climate catastrophe. In addition, these lenders come under fire for being dominated by wealthier nations, with the developing nations, who are most vulnerable to the effects of global warming, being left out of the decision-making process.
It is not yet clear whether or not the summit will be successful in making significant headway towards achieving a more equitable distribution of the world’s financial resources.
The Club, which was established in 1956 and is currently comprised of 22 countries, including Germany, France, and the United States, has been tasked with finding answers to the issues that fragile countries face when it comes to the repayment of their debt.
“The delays have been very long; there are certainly needs for technical work, but we can’t let countries wait more than two years before obtaining debt treatment,” said the Club’s President, Emmanuel Moulin, at the opening of the 10th annual Paris Club Forum, which was held in the French capital on Wednesday. The forum is in its 10th year and is held every year in Paris.
On the eve of an international summit in Paris that was held with the goal of better assisting developing nations in their efforts to cope with climate change, the important players in the world of lending got together for a meeting.
The leader of the club, Emmanuel Moulin, has also advocated for the creation of “a user’s manual based on the experiences of Chad and Zambia,” with the goals of “better explaining to potentially eligible countries” how the common framework operates and “giving debtor countries greater clarity.”
Other players, most notably China and private creditors, have joined the powerful and informal club in recent years, making it an essential component in the debt composition of less developed countries. The club is steeped in tradition and known for its power.
The club sent an invitation to these other players to come to Paris on Wednesday in order for them to take part in all-day conversations on a variety of topics, including Zambia, Ghana, and Ethiopia.