Global financial system is failing developing countries, says Ed Miliband
UK foreign secretary will call for World Bank and others to help governments trapped by hefty borrowing costs The foreign secretary, Ed Miliband, will claim the global financial system is failing developing countries, as he calls for a “new deal” for governments struggling under the burden of debt. Promising to throw the UK’s diplomatic weight behind urgent reform, he will evoke the example of…
UK Foreign Secretary Ed Miliband will assert that the global financial system is failing developing countries, calling for a "new deal" to address their mounting debt burdens. In Bangkok for the IMF and World Bank annual meetings, Miliband will push for the World Bank and other multilateral development banks (MDBs) to use their resources to alleviate the financial struggles of indebted governments.
He will stress the need for longer repayment terms, better refinancing rates, and faster support during crises. Miliband's call for reform echoes the Gleneagles summit of 2005, where the UK's Make Poverty History campaign secured significant debt write-downs for over 30 countries. He will argue that addressing these issues will not only alleviate fiscal pressures but also attract private investment, a crucial goal for the World Bank.
The UK is set to take up the G20 presidency in 2024, a key forum for discussing global financial matters, including sovereign debt. Miliband will urge reforms to the debt restructuring framework, which has been criticized for being sluggish and ineffective. He will also demand that private creditors contribute to the cost of debt relief, rather than public funds being used to bail out private lenders.
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