Ruto calls for restructuring of multilateral institutions to address challenges in developing countries

In an interactive dialogue of the Summit of the Future at the United Nations General Assembly, Ruto said structural challenges are a risk to developing countries and could hinder them from achieving the Sustainable Development Goals (SDGs) by 2030. 

“The upcoming fourth International Conference on Financing for Development may be our last opportunity to make radical changes needed to realise and realign our development priorities to meet the SDGs by 2030,” Ruto said during the September 22 session attended by leaders from other UN member states. 

The Head of State noted that the current system in institutions such as the International Monetary Fund (IMF) and World Bank is failing to address the complex challenges in developing nations, and instead impacting them negatively. 

“We must urgently close financing gaps, bridge international divides and restore trust in multilateralism,” he stated. 

“We also must recognise that the prevailing multilateral institutional architecture is dysfunctional, or at least highly ineffective and cannot be relied upon to provide solutions for the world that we all urgently need. This is why countries are increasingly turning to innovative, homegrown approaches to solve their most pressing problems,” he added. 

The president cited challenges such as limited fiscal ability, rise in debt, unfair credit framework and uneven interest regime as stumbling blocks in the realisation of SDGs by developing nations. 

“The face of deteriorating global economic conditions worsened by the relentless climate crisis, these weaknesses limit opportunities, especially in low-income countries. Today, one in three developing countries is at risk of defaulting on their debt obligations. The role of an unfair and unjust global financial system is compounding economic crisis and deepening inequalities,” argued Ruto. 

According to the President, the development financing by multilateral organisations is not keeping pace with the economic realities and urgent needs of the developing world. 

He cited this as the course of a growing gap between developed and developing nations, resulting into worldwide inequality. 

Ruto is among Heads of State at the Summit of the Future who witnessed the adoption of the Pact for the Future, Declaration on Future Generations and the Global Digital Compact.