India to chair Commonwealth group on reform of financial architecture

During the Commonwealth Finance Ministers High-Level Working Group Meeting held in Washington D.C., finance ministers from several Commonwealth nations have urged for a comprehensive overhaul of the global financial architecture to improve the availability of development financing for countries that are vulnerable.

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India to chair Commonwealth group on reform of financial architecture:

They have also agreed to appoint India as the chair and Nigeria as the deputy chair of the Finance Ministers Working Group for a Commonwealth Call for Reform of the Global Financial Architecture. The ministers’ joint demand for reforms reflects their shared commitment to addressing the needs of developing countries and promoting global economic stability.

Significance of the Commonwealth Finance Ministers High-Level Working Group Meeting:

During the first Commonwealth Finance Ministers High-Level Working Group Meeting, which was held on the sidelines of the 2023 World Bank Group and International Monetary Fund Spring Meetings, finance ministers engaged in discussions about national fiscal policies, financial sustainability measures, eligibility criteria for development finance, and potential reforms that could lead to a more equitable financial architecture.

The ministers emphasized the need for any reforms to increase funding and take into account the realities of vulnerability when allocating support to help vulnerable countries build resilience and achieve sustainable development.

In her opening remarks, Commonwealth Secretary-General Patricia Scotland KC pointed out the challenges posed by the overlapping, interlinked, and accelerating economic, security, and environmental challenges facing the world. She emphasized that these challenges exacerbate existing inequalities and threaten stability, resilience, and development prospects.

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