Ms Karol Balfe:

Multilateralism is clearly under threat at the moment. In America and globally, there are so many issues. The global south is witnessing a double standard that they see from the global north regarding climate finance, Gaza and accountability towards Israel. There is a deep distrust of the power dynamics there.

If we ignore the calls of the global south for a UN framework, we fuel that. We should defend multilateralism but not defend broken systems that do not work. We should recreate more inclusive, democratic and multilateral systems. This is where the UN debt framework is so important and where we challenge claims the G20 is an established model on debt. The G20 common framework was set up five years ago. About seven countries have benefited from some debt restructuring. It is described by the Overseas Development Institute as too little, too late and too complex. There is a lack of transparency about the amount of debt relief available, the process and the decision-making. Countries in critical debt distress such as Kenya and Pakistan were not even included in the mix. We challenge what the Irish Government has said and the EU more broadly in relation to the G20 being the mechanism for debt. It is problematic. We need a global mechanism. There are three fundamental things that a global debt mechanism would try to do. It would shift inequality and unfair power dynamics between rich and poor countries to make it more global. It would try to stop debt crises happening again. We can be sure this is something the G20 has not been able to do. When there is debt distress, it would put in place clear rules, regulations and frameworks around this, including rules on sovereign lending and rules for creditors. A key trend is the increase in private creditors. In the case of Zambia, which has one of the highest poverty levels in the world, one of its major creditors is BlackRock, which also plays a major role in fuelling the climate crisis. It will make 110% profit from the debt deal with Zambia. There is no way it cannot afford to give debt relief. Private creditors have to be within the mix.