The Intergovernmental Group of Twenty-Four on International Monetary Affairs and Development (G-24) recently convened in Washington, D.C., addressing several pressing global issues. The meeting, chaired by Ralph Recto from the Philippines, focused on humanitarian crises, economic stability, and multilateral cooperation.
"The G-24 expresses its deep concern over the humanitarian crises and conflicts afflicting numerous regions across the globe," stated the group. They emphasized a united approach to restore peace and stability while urging parties to prioritize diplomacy.
Global economic growth is expected to stabilize in 2024 and 2025; however, challenges remain for Emerging Markets and Developing Economies (EMDEs). "Geopolitical tensions, trade fragmentation, increasingly frequent extreme weather conditions, and a more pronounced slowdown could pose significant headwinds to global growth," they noted.
Inflationary pressures are easing but uncertainties persist. While advanced economies have managed inflation effectively, some EMDEs continue to face high rates. "Escalating geopolitical tensions could lead to heightened volatility in food and energy prices," warned the group.
The G-24 highlighted challenges faced by EMDEs due to currency depreciation, high debt levels, and rising debt-servicing costs. They called for the International Monetary Fund (IMF) to strengthen crisis prevention mechanisms. "We welcome the ongoing reviews and updates of IMF procedures and policies," they stated.
Further reforms were suggested for IMF lending tools to address members' challenges. The approval of a third chair for Sub-Saharan Africa at the IMF Executive Board was also recommended to enhance representation.
The group praised progress in implementing the World Bank Group's Evolution Roadmap and stressed affordable investment costs aligned with Sustainable Development Goals. They urged ambitious contributions during International Development Association replenishment discussions.
Upcoming shareholding reviews for international financial institutions were deemed crucial for increasing EMDEs' voice. The G-24 expressed support for deeper engagement between World Bank Group and Multilateral Development Banks under G20 Brazil Presidency's roadmap.
Additionally, they commended progress under the G20 Common Framework but called for more meaningful debt relief measures. Concerns about falling short on climate goals were raised alongside calls for accelerated climate action based on equity principles.
Finally, domestic resource mobilization was underscored as vital for sustainable development with efforts against illicit financial flows encouraged. Support was voiced for a rules-based multilateral trading system amidst rising protectionist policies globally.
Participants included finance ministers from various countries such as Argentina's Candelaria Alvarez Moroni as First Vice-Chair and Nigeria's Olawale Edun as Second Vice-Chair among others present at both ministerial meetings held on October 21st -22nd this year.