Secretary of the Treasury of the United States, Janet YellenThis Sunday was denied at one point The G7 meeting Massive Western support for Ukraine comes at the expense of aid to developing countries.
“I reject the idea of ​​a swap” between those two issues, Yellen announced at a press conference Gandhinagar, in western IndiaA meeting of G7 finance ministers was held on Sunday before the G20 meeting on Monday and Tuesday.
The official argued that it was a priority “Double our support for Ukraine”Because “putting an end to this war is, above all, a Moral imperativeBut it’s also the best thing we can do for the global economy.
Russia’s invasion of Ukraine – two major global grain producers – has had a strong impact on the global economy since last year, pushing up food and energy prices.
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Japanese Finance Minister, Shunichi SuzukiAfter the ministerial meeting, the G7 maintained its “unwavering support” for Ukraine.
“We have ensured that Russian assets under the supervision of the G7 countries will not be handed over until Russia pays reparations to Ukraine,” Suzuki said, adding that Moscow would have to bear the “long-term reconstruction costs” of the neighboring country.
India did not condemn Russia’s invasion
However, the insistence on supporting Kiev could be embarrassing for India, this year’s host of the G20, which has not condemned the Russian invasion. Many countries in the South, Asia, Latin America and Africa have taken a stand and refuse to take sides in the conflict.
World Bank President Ajay BangaIt expressed concern this week about the “deep mistrust” between North and South countries, calling it a “time to coordinate” to tackle the “united” challenges of the fight against poverty, the fight against climate change and the post-pandemic economic recovery.
“The frustration of the Global South is understandable,” Banga wrote in a recent forum.
“In many ways, they are paying the price for other people’s prosperity,” and “they worry that resources promised to rebuild Ukraine will be diverted,” he added.
The most industrialized countries are keen to demonstrate that they have made no effort to support developing countries. Yellen He noted a series of developments and reforms on several fronts related to development assistance that will be addressed at the G20 Finance Summit in Gandhinagar this Sunday.
Reforming financial systems
Therefore, starting with the World Bank, he listed a series of efforts to reform multilateral development banks, with the aim of increasing their efficiency and lending capacity, directing their assistance to the challenge represented by the fight against climate change and adaptation.
The Treasury Secretary also supported progress in debt restructuring in countries such as Zambia, and said he expected similar deals soon in favor of Ghana and Sri Lanka.
The Finance Ministers’ meeting in Gandhinagar will also be an occasion to continue negotiations on an international agreement on taxation of multinational corporations.
About 140 countries, under the auspices of the Organization for Economic Co-operation and Development (OECD), have validated a preliminary plan in this regard, although friction points remain.
