We highly appreciate Prime Minister Sheikh Hasina’s call for reshaping the world financial system in order to address the ongoing financial crisis across the globe. She put forward five points in reshaping the financial system while speaking at the High-level Roundtable titled “Towards a Fair International Financial Architecture” held at UN Headquarters in New York.
Various discussions on the latest global economic crisis are now taking places during 78th United Nations General Assembly Session. Many countries especially developing and least developing ones are facing financial hardships as the economic recession deepens.
The world financial system needs fundamental shift to address the ongoing financial crisis. The global credit rating system should be reviewed as the current one has restricted access to the funds for many low and middle income countries. In this regard, UN Secretary General also said that the global credit rating system must be reviewed.
The world financial
system needs fundamental
shift to address the
ongoing financial crisis
The current rating system further restricts access to funds for many low and middle income countries. The limits on their voting rights, quotas, and representation in Multilateral Development Banks and International Financial Institution also undermine their bargaining power.
The international public finances will be costly and out-of-reach. Bangladesh tries to stay clear of high-interest-rate loans to avoid debt distress. And the country has never defaulted on its loan repayment, and it hopes to maintain that record.
The international financial system should respond to low and middle income countries’ expectations. The international financial architecture needs urgent reforms. But agreement on the nature and extent of the reforms remains lacking. In this regard political will is very important.
Bangladesh has long been credited for its sound macroeconomic management. Its economy grew by 8.15 percent just before the pandemic. Bangladesh economy is still in good shape and also heading towards the right direction despite the impact of Coronavirus pandemic coupled with Russia-Ukraine war now taking a toll on the global economy.
However, as the inflation has increased, prices of all essentials went beyond the purchasing capacity and not only the developing nation but also developed countries also are struggling. Therefore, keeping Sheikh Hasina’s call in mind world financial system must be reshaped as early as possible.