WeeklySA_AdminUnjust: Disparities in wealth and development within and between countries were unjust and unsustainable
By Monk Nkomo
Billions of people around the world were affected by poverty, hunger, underdevelopment, inequality and unemployment while the outlook for global economic growth remained subdued and many economies carried the burden of unsustainable levels of debt.
This was said by President Cyril Ramaphosa at the launch of South Africa’s G20 Presidency under the theme : Solidarity , Equality and Sustainability ‘’ which was held in Cape Town this week. South Africa assumed the Presidency of the G20 group of countries from December 1, this year.
Ramaphosa said while the challenges the world faced were common, their causes and consequences were unevenly distributed across and between countries.
The disparities in wealth and development within and between countries were unjust and unsustainable. The G20 group played a critical role in influencing global policy and fostering economic stability. Its decisions had a direct impact on the lives of all members of the global community.
The climate change crisis, Ramaphosa added, was worsening. Geopolitical instability, conflict and war were causing further hardship and suffering. This was all happening at a time of great technological change, which presented both opportunities and risks.
Working together with G20 members, and building partnerships across society, South Africa would seek to harness global will and capabilities to confront these challenges.
‘’We all seek to achieve more rapid, inclusive and economic growth. We all seek a more just and equal world and a world in which poverty and hunger are eradicated. We all seek to avert the worst effects of climate change and to preserve our planet for future generations. The G20 provides us with a platform to pursue these collective goals’’.
Ramaphosa said through solidarity, they could create an inclusive future that advanced the interests of people at the greatest risk of being left behind. This was important in an interconnected world, where the challenges faced by one nation affected all nations.
He lamented the problem of inequality and stressed that by promoting equality, they strived to ensure fair treatment and equal opportunities for all individuals and nations.
‘’We aim to break down divisions of economic status, gender, race, geography or any other characteristic. Sustainability involves meeting the needs of the present without compromising the ability of future generations to meet their own needs. In line with our theme, we will seek to strengthen and advance the international effort to achieve the Sustainable Development Goals by 2030.’’
Ramaphosa said they would use this moment to bring the development priorities of the African Continent and the Global South more firmly onto the agenda of the G20. In this regard, they would build on the work of the most recent G20 Presidencies of Brazil in 2024, India in 2023 and Indonesia in 2022.
‘’We will use our G20 Presidency to secure urgent progress on shared goals through a number of priority actions. First, we must take action to strengthen disaster resilience. The increasing rate of climate-induced natural disasters is affecting countries around the world, with a devastating impact on those countries that cannot afford the costs of recovery and rebuilding’’.
South Africa would also elevate this issue to leader level, calling for the global community, including international financial institutions, development banks and the private sector, to scale up post-disaster reconstruction.
Ramaphosa promised to take action to ensure debt sustainability for low-income countries. A key obstacle to inclusive growth in developing economies, including many in Africa, was an unsustainable level of debt which limited their ability to invest in infrastructure, healthcare, education and other development needs.
Building on G20 initiatives undertaken in recent years, they would also seek to advance sustainable solutions to tackle high structural deficits and liquidity challenges and extend debt relief to developing economies.
They would also seek to ensure that the sovereign credit ratings were fair and transparent and to address high risk premiums for developing economies. Thirdly, they would mobilise finance for a just energy transition.
‘’We will seek to secure agreement on increasing the quality and quantity of climate finance flows to developing countries. This would include strengthening multilateral development banks, enhancing and streamlining support for country platforms such as the Just Energy Transition Partnership and more effectively leveraging private capital’’.
Ramaphosa called on all the G20 group to work together to harness critical minerals for inclusive growth and development. As minerals extraction accelerated to match the needs of the energy transition, it was crucial to ensure that the countries and local communities endowed with these resources were the ones to benefit the most.
‘’We will use this G20 to champion the use of critical minerals as an engine for growth and development in Africa. South Africa’s G20 Presidency will pursue progress on cross-cutting issues through the establishment of three dedicated task forces.
The first task force is on Inclusive Economic Growth, Industrialisation, Employment and Reduced Inequality. The second task force is on Food Security. The third task force is on Artificial Intelligence, Data Governance and Innovation for Sustainable Development’’.
It was critical for South Africa that the G20 remained focused on its core responsibilities to address global economic and financial challenges. It should not replace existing international institutions and platforms such as the United Nations and associated bodies.
At the same time, G20 initiatives should support, not diminish, the responsibilities that countries have to deliver on the Sustainable Development Goals, climate action and other commitments. To ensure that the G20 remained focused, South Africa would not create any new working groups or permanent structures.
