President Lazarus Chakwera Thursday called for urgency in fixing and reforming the United Nations (UN) and other multilateral institutions.
He said doing so would send a signal that the UN and multilateral institutions were serious on their commitment to the ideal of mutual cooperation.
Chakwera said what Africa is demanding is that the UN should embrace democracy in the Security Council by giving Africa two permanent seats with veto power.
“As a result of our refusal to practice the democracy of equal representation here in the UN, our calls for member states to practice democracy in their own jurisdictions are beginning to fall on deaf ears,’ he said.
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The Malawi leader was quick to note that the country’s efforts to move forward in fifth gear were being significantly slowed down by a global system of multilateral agencies and financial institutions that were too slow, too inefficient, too monolithic and too undemocratic for the kind of speedy and tailor-made interventions Malawi needed.
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Chakwera then cited instances where Malawi had registered development strides due to mutual cooperation with like-minded institutions and countries.
“[There has been cooperation] whether it be the four road corridors and hundreds of secondary schools we are constructing through our cooperation with the United States; or the M1 Road we are rehabilitating and expanding through our cooperation with the European Union;
“Or the railway system we have revived for the first time in 40 years through our cooperation with China; or the orthopedic and neurosurgery hospital we have developed through our cooperation with Norway; or the Makanjira Road we are ready to develop through our cooperation with Saudi Arabia; or the investments we are making to strengthen education and governance institutions through our cooperation with the United Kingdom;
“Or the solar power plants we have developed through our cooperation with Japan; or the Extended Credit Facility from the International Monetary Fund that has unlocked our access to the World Bank’s budgetary and IDA [International Development Association] support through our cooperation with development partners,” Chakwera said.
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He told the world’s biggest stage that if the future belonged to nations that knew how to leverage the power of international cooperation, then the future belonged to Malawi.
Further, Chakwera said if the future belonged to nations with an unapologetic commitment to multilateral collaboration, then the future belonged to Malawi.
“If the future belongs to nations that are driven by the moral conviction to uphold the values of servant-leadership, shared prosperity, ending corruption, and the rule of law, then the future belongs to Malawi.
“If the future belongs to nations that have adopted a no-retreat and no surrender attitude towards the achievement of SDGs [Sustainable Development Goals] by 2030, then the future belongs to Malawi.
“If the future belongs to nations that put [their] children first, the way that Malawi has done by resolving to end child marriage and the poisoning of children with lead products by 2030 [then the future belongs to Malawi],” Chakwera said.
Chakwera also raised the issue of debt, saying there was a need for rich countries to consider scraping it.
Weighing in on the issue of debt cancellation, Economics Association of Malawi (Ecama) President Bertha Bangara Chikadza said the African continent was facing a debt crisis similar to that faced in the 1990s, with many nations allocating more resources to debt repayment than to essential sectors such as healthcare and education.
For example, Chikadza said Africa had to pay $163 billion to service debt now as compared to $61billion in 2010.
Thus, according to the Ecama chief, African countries are spending more on external debt servicing just to manage their credit ratings, which will enable them to borrow more.
“The statement criticises the failure of wealthier nations to fulfill their climate financing commitments or to link these commitments to debt relief for developing countries.
“Climate financing is supposed to help developing nations such as Malawi, which constantly face climate-related disasters, [to] mitigate and adapt to climate change,” Chikadza said.
She added that the high-debt-to-GDP ratio in developing countries was an indication of the countries struggling to pay back and manage loans they contracted, which further hinders their economic growth and stability.
“Hence, the Malawian President is warning that since many developing countries are accumulating unsustainable debts and these debts are swelling up faster due to climate related shocks, the growing debt crisis in developing countries poses a significant threat to global financial stability.
“If these countries are unable to manage their debt, it could lead to economic instability that affects the global economy including those rich countries which could just offer debt relief to these struggling low income economies,” she said.
On his part, Blantyre-based economist Marvin Banda said Chakwera’s address underscored the near global call for commitment towards sustainable economic growth.
According to Banda, the President recognised and was rightfully trying to leverage Malawi’s unique climate position to ensure that its people did not fall behind as Africa continued to be a cesspool for unsustainable debt-linked development.
“However, the President did not address the implementation problems that arise when such policies are [linked to] climate financing because policies don’t automatically translate to adherence towards sustainable and equitable practices.
“What remains terrifying about the debt crisis in Africa is that most of the debt countries have incurred since 2006 Hipc [Highly Indebted Poor Countries] relief programmes have been either dominantly domestic with no chance of restructuring without legislative strong arming and pride swallowing that would decimate the lenders, who make more than average 60 percent of their profits from interest payments from fiscally dominated credit sectors,” Banda said.
On his part, Glasgow-based economist Velli Nyirongo said Chakwera’s address to Unga underscored a crucial issue that was facing African countries: the escalating debt crisis, which he characterised as a cancer threatening not only Africa but the global economy.
According to Nyirongo, Chakwera’s remarks are a forceful reminder that the economic instability of developing nations can have far-reaching consequences, challenging the notion that such problems are isolated.
“By linking the failure to honour climate finance pledges with the rising debt-to-GDP ratio in countries like Malawi, Chakwera highlights how these intertwined issues are exacerbating economic vulnerability.
“Climate change is disproportionately affecting nations with weaker financial capacity, and without relief or better financing structures, these countries are left struggling with mounting debts while also contending with the impacts of climate-related disasters. This dual burden puts them in a cycle of perpetual economic strain,” Nyirongo said.
