G-24 Urges Stronger Global Unity to Address Crises, Inequality, and Debt Burden

The G-24 expresses deep concern over the rising scale of humanitarian emergencies, from protracted armed conflicts to climate-induced disasters.

As the world navigates through a turbulent era marked by escalating humanitarian crises, economic fragmentation, climate volatility, and mounting public debt, the Intergovernmental Group of Twenty-Four (G-24) has issued a resolute call to action. In its latest communique, the G-24 urges the international community to reinvigorate multilateral cooperation, uphold the integrity of humanitarian aid, and enhance global financial institutions’ support for vulnerable nations.

The statement underscores that the interlinkages between conflict, inflation, trade disruptions, and underfunded aid systems threaten to reverse years of development progress—particularly in Emerging Markets and Developing Economies (EMDEs) and Low-Income Countries (LICs). Below is an in-depth breakdown of the G-24’s key messages, enriched with analysis and context.

1. Humanitarian Crisis Escalation and Dwindling Global Aid

The G-24 expresses deep concern over the rising scale of humanitarian emergencies, from protracted armed conflicts to climate-induced disasters. These crises have devastated lives and strained already fragile economies, especially in developing regions acting as “frontline states.”

• Shrinking Aid Budgets: Major donor countries are tightening aid budgets due to domestic fiscal pressures, undermining timely response to urgent needs.

• Call for Predictable Funding: The G-24 reiterates the necessity of predictable, needs-based humanitarian assistance to restore stability and support long-term recovery.

2. Economic Outlook Clouded by Trade Conflicts and Fragmentation

The global economy is confronting a new wave of uncertainty as geopolitical rivalries and protectionist trade measures increase. The G-24 warns that abrupt policy shifts—such as tariff hikes—could dampen global trade and productivity growth.

• Impacts on EMDEs and LICs: These regions are more vulnerable due to their dependency on global trade flows and limited industrial diversification.

• Rising Costs of Protectionism: Tariff wars may stifle innovation, raise consumer prices, lower real wages, and disrupt fragile supply chains.

3. Financial Vulnerability Amid Tightening Global Conditions

As inflationary pressures persist and interest rates remain high in advanced economies, EMDEs are facing intensified financial stress:

• Reversal of Capital Flows: Many countries are seeing outflows of investment capital, weakening their currencies and pushing up debt servicing costs.

• Debt Sustainability Challenges: Sovereign debt vulnerabilities are worsening, particularly in nations with limited fiscal space or high exposure to foreign currency debt.

4. Strengthening Domestic Policy Resilience

The G-24 outlines a roadmap for internal economic resilience through:

• Fiscal Prudence with Growth Orientation: Governments should rebuild fiscal buffers while maintaining growth-stimulating investments in infrastructure, education, and health.

• Independent, Data-Driven Monetary Policy: Central banks must be empowered to manage inflation and financial volatility without political interference.

• Structural Reforms: Social safety nets and labor market reforms are crucial to inclusive growth and economic resilience.

5. Revamping the IMF’s Role in a Fragmented Financial Order

Acknowledging the IMF’s vital role as the anchor of the Global Financial Safety Net, the G-24 calls for enhanced institutional capacity:

• Quota Reforms: A reallocation of IMF quotas under the 16th and 17th General Reviews is urged to reflect the growing economic influence of EMDEs and avoid marginalization.

• SDR Rechanneling: The slow pace of Special Drawing Rights (SDR) reallocation to Multilateral Development Banks (MDBs) remains a concern. The G-24 calls for innovative approaches to make SDRs more impactful for development finance.

6. Addressing Global Liquidity and Capital Flow Management

In a world where liquidity access remains skewed, the G-24 promotes:

• Regional Financing Arrangements: Greater coordination between the IMF and regional safety nets can plug short-term financing gaps.

• Managing Capital Volatility: Countries must receive better policy tools and analytical support to mitigate the risks of sudden capital outflows and exchange rate shocks.

7. Reform and Innovation within the World Bank Group

The G-24 welcomes progress under the WBG Evolution Roadmap but emphasizes urgency in delivery:

• Climate-Responsive Finance: Instruments like the Climate Resilient Debt Clause must be scaled up to help countries adapt to climate impacts.

• Guarantee Platforms and Hybrid Capital: These are seen as critical tools for crowding in private capital and expanding lending capacity.

• Job Creation and Transformation: The WBG is urged to prioritize human capital, private sector development, and infrastructure to foster employment and economic transition.

8. IDA21 Replenishment and MDB System Modernization

The G-24 celebrates the successful replenishment of IDA21, vital for supporting LICs. However, systemic reforms in the MDB ecosystem are also needed:

• Currency Risk Mitigation: Local currency lending and domestic capital market deepening are crucial to reduce FX-related vulnerabilities.

• Governance Reforms: Shareholding reviews should reflect today’s economic realities and amplify the voices of underrepresented countries.

9. Tackling Debt Distress with Predictability and Transparency

The group stresses the importance of resolving sovereign debt crises efficiently:

• Common Framework Reforms: Despite progress, the G-24 seeks faster, more predictable debt resolution outcomes with full creditor participation.

• Debt Transparency: Enhancing debt data reporting and redefining credit ratings based on holistic risk factors can strengthen investor confidence.

10. Accelerating Climate Action and Mobilizing Green Finance

The G-24 calls for an urgent pivot toward meaningful climate action through:

• Just Transitions: Policy frameworks must reflect national capabilities and ensure energy transitions do not deepen inequality.

• Green Financial Instruments: Bonds, blended finance, and insurance mechanisms are seen as pivotal in unlocking private climate investment.

• Climate Finance Commitments: Developed nations are pressed to honor and scale up their financial pledges on climate adaptation and mitigation.

11. Boosting Domestic Resource Mobilization and Tax Justice

Robust tax systems are a foundation for financial self-reliance. The G-24 encourages:

• Joint IMF-WBG Support: Domestic resource mobilization must be strengthened through technical aid and policy support.

• International Tax Cooperation: Efforts like the G20-OECD Inclusive Framework and UN Tax Convention are essential to combat tax base erosion and illicit financial flows.

12. Defending Multilateralism and Trade Integrity

The G-24 affirms its commitment to a rules-based, open trading system:

• WTO at the Core: A reformed and empowered World Trade Organization is central to global trade stability.

• OPEC’s Market Role: The G-24 acknowledges the stabilizing influence of OPEC’s Declaration of Cooperation in balancing global oil markets.

A New Multilateralism for a Changing World

The G-24's communique serves as both a warning and a guidepost. It warns of the dangers of fragmented responses to interconnected global challenges. Yet it offers a comprehensive agenda for cooperative solutions—from climate resilience and debt transparency to equitable economic governance and sustainable development. As the world faces a new era of instability, the G-24 reasserts that only through reinvigorated multilateralism can we hope to build a future that is resilient, equitable, and inclusive.