DOHA: UN Secretary-General Anto­nio Guter­res on Saturday slammed the world’s rich countries and energy giants for throttling poor nations with “predatory” interest rates and crippling fuel prices.

Speaking in the Qatari capital, Doha, Guterres told leaders of more than 40 of the most deprived states that wealthy nat­ions should provide $500 billion a year to help others “trapped in vicious cycles” that block efforts to boost economies and vital services.

The summit of Least Developed Countries (LDC) is normally held every 10 years but has twice been delayed since 2021 because of the coronavirus pandemic.

Afghanistan and Myan­mar, two of the poorest countries, are not present at the Doha meeting of 46 LDC members because their governments are not recognised by UN members.

Wealthy nations should provide $500bn a year to poor countries, Guterres tells LDC summit

No leader from any of the world’s major economies attended.

At a leaders’ summit ahead of the start of the general LDC conference on Sunday, Guterres hit out straight away at the way poor nations are treated by the more powerful.

“Economic development is challenging when countries are starved for resources, drowning in debt, and still struggling with the historic injustice of an unequal Covid-19 response,” he said.

Guterres said the poorest nations were being left behind in the “digital revolution” and the Ukraine war had fuelled their food and fuel prices.

Broken promises

“Our global financial system was designed by wealthy countries, largely to their benefit,” he said.

“Deprived of liquidity, many of you are locked out of capital markets by predatory interest rates,” the UN leader said.

A host of presidents and ministers hit out at financing conditions for LDCs, whose debt has more than quadrupled in a decade to an estimated $50 billion in 2021.

Wealthy nations had failed to keep a promise to give 0.15-0.20 per cent of their Gross National Income to LDCs, the UN chief said.

With poorer states trap­ped in a “perfect storm for perpetuating poverty and injustice”, Guterres said LDCs required a “minimum” $500 billion a year to overcome their problems, build up job creating industries and repay debts.

Under proposals a so-called Doha Programme of Action, a food stockholding system, will be set up to help countries facing hunger crises through drought and high prices.

Published in Dawn, EOS, March 5th, 2023