President Cyril Ramaphosa Warns That Erosion of Multilateralism Threatens Global Stability and Growth at G20 Finance Meeting in South Africa

During a G20 finance meeting held in South Africa, President Cyril Ramaphosa highlighted a growing concern: the erosion of multilateralism.

In his opening address, he warned that this erosion poses a serious threat to global growth and stability.

The meeting, which included finance ministers and central bank governors from some of the world’s leading economies, set the stage for crucial discussions at a time when global cooperation seems more fractured than ever.

Absence of Key Figures Raises Concerns

This G20 finance meeting, which took place just after the G20 foreign ministers’ meeting, was marked by the absence of key figures, such as the US Treasury Secretary, who had opted not to attend.

US Secretary of State Marco Rubio also criticized the event, calling it “anti-American” due to South Africa’s land reform policies and the direction of the discussions.

Despite these absences, Ramaphosa’s opening address set a clear tone, emphasizing the importance of maintaining a rules-based global order, especially amid heightened geopolitical tensions.

Multilateralism: A Hopeful Solution for Global Challenges

Ramaphosa stressed the importance of multilateral cooperation in addressing global challenges.

From slow economic growth and rising debt burdens to persistent poverty and the threat of climate change, the G20 leaders face a range of difficult issues.

According to Ramaphosa, multilateralism is the only viable solution to these problems.

He underscored that cooperation between countries, especially in response to the environmental and economic issues that plague many nations, remains crucial for achieving stability and progress.

South Africa’s Focus During Its G20 Presidency

As the country holding the rotating G20 presidency, South Africa chose the theme of “Solidarity, Equality, Sustainability” for this year.

Ramaphosa noted that one of South Africa’s priorities for its tenure at the G20 is strengthening the resilience of poorer countries, particularly in terms of their ability to respond to natural disasters.

He called for more innovative financing and insurance mechanisms to help these nations recover from climate-induced catastrophes.

Debt Crisis in Developing Countries

Another urgent priority highlighted by Ramaphosa was the rising debt burden in low- and middle-income countries.

Over the past few years, the costs of servicing sovereign debt have risen sharply, and these countries are now facing the painful consequence of budget constraints that limit investment in vital sectors like healthcare, education, and infrastructure.

According to the UN Development Programme, in 56 developing countries, interest payments have surpassed 10% of government revenue—a figure that has nearly doubled in the past decade.

The UN has called for immediate reforms to address this growing crisis.

The Global Economic Landscape: A Dangerous Shift

At the meeting, Britain’s Finance Minister Rachel Reeves echoed similar concerns, emphasizing the increasing dangers in the world and the need for higher defense spending.

She stated that national security is a key pillar of economic growth, especially as global tensions rise.

Meanwhile, Ramaphosa highlighted how South Africa, through its leadership in the G20, is trying to address these critical issues, with a focus on environmental sustainability and economic development for developing nations.

Ramaphosa’s Call for Action on Climate and Debt

Ramaphosa concluded by reinforcing the idea that the economic and social wellbeing of nations, especially those in the Global South, depends on an international response that includes addressing climate change and ensuring equitable access to resources for recovery.

This includes finding better ways to finance disaster prevention and reconstruction, as well as creating a more sustainable global debt system that doesn’t overburden developing economies.

What’s Next for Global Cooperation?

As the G20 discussions continue, the world’s leaders are tasked with addressing these pressing issues.

Ramaphosa’s calls for greater multilateral cooperation and action on climate and debt will likely be key themes moving forward.

Will the international community come together to tackle these challenges, or will global fragmentation continue to hinder progress?

What Do You Think of Ramaphosa’s Position on Multilateralism?

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