Erosion of Multilateralism: A Threat to Global Stability, Warns South African Leader

President Cyril Ramaphosa of South Africa warned that the decline of multilateralism undermines global economic growth and stability during a G20 finance meeting. His remarks underscored the importance of unity among nations to tackle issues such as climate change and rising debt. Key voices, including the UK’s Finance Minister, supported the need for enhanced security spending in light of ongoing geopolitical tensions.

President Cyril Ramaphosa of South Africa cautioned that the diminishing role of multilateralism poses a significant threat to global economic growth and stability during a G20 finance meeting. His remarks come amid the absence of key U.S. officials, including Treasury Secretary Scott Bessent, signaling a growing divide among major economic powers on critical international issues, particularly following substantial policy shifts under the Trump administration.

In his opening address, Ramaphosa emphasized, “The erosion of multilateralism presents a threat to global growth and stability.” He underscored the necessity of a rules-based international order, especially during periods of geopolitical tensions, to effectively manage disputes and achieve conflict resolution.

At the G20, where 19 countries and the European Union convene, internal disagreements persist regarding pressing matters such as climate change and the ongoing war in Ukraine. Ramaphosa called for unity, asserting that multilateral cooperation is essential to address unprecedented challenges such as inequality, rising debt, and climate change.

As the current rotating presidency holder of the G20, South Africa has adopted the theme of “Solidarity, Equality, Sustainability.” The meeting has attracted finance ministers from several nations, although key discussions have been overshadowed by claims of an anti-American bias, notably from U.S. officials who have opted not to participate.

British Finance Minister Rachel Reeves highlighted the vital link between defense spending and economic growth during the discussions, stating, “It is clear we are facing a more dangerous world.” U.S. domestic policy changes have raised concerns about security commitments to Europe amid ongoing geopolitical uncertainty.

President Ramaphosa also addressed urgent priorities, such as enhancing the resilience of developing countries to natural disasters and improving their capacity to manage rising debt levels. He pointed out that increasing debt servicing costs are directing funding away from essential services, including education and healthcare.

In light of the statistics provided by the UN Development Programme, the burden of sovereign debt is alarming, with interest payments exceeding 10 percent of government revenues in numerous developing nations. This situation necessitates immediate reforms in the global borrowing system to mitigate these challenges and foster economic stability in struggling regions.

In conclusion, President Ramaphosa’s remarks at the G20 finance meeting highlight the critical implications of diminishing multilateralism on global stability and economic growth. His focus on multilateral cooperation as a means to confront significant challenges including climate change and rising debt is essential for fostering a resilient global economy. Furthermore, addressing the urgent needs of developing economies is fundamental to ensuring sustainable development in an increasingly volatile world.

Original Source: www.france24.com