The Bretton Woods system is an agreement made after World War II in Bretton Woods in the United States with the aim of ensuring the stability of the world economy.
Speaking at a press conference in Hiroshima, Japan, where the Group of Seven summit was being held, Guterres said the Security Council and the Bretton Woods system reflected the balance of power in 1945 and should to be updated.
“The global financial architecture is outdated, dysfunctional and unjust…and has failed in its primary function as a global safety net against the economic shocks caused by the COVID-19 pandemic and Russia’s invasion of Ukraine. “, did he declare.
António Guterres also explained that he had sensed at the G7 summit a growing awareness by developing countries that not enough was being done to reform outdated institutions or to “suppress the frustrations” of countries in the hemisphere. south.
The International Monetary Fund said in its World Economic Outlook in January that India’s economy will grow by more than 6% this year and next.
Pierre-Olivier Gurinchas, chief economist and director of the research department of the International Monetary Fund, said at the time that China and India would together account for around 50% of global growth in 2023.
The economic power of wealthy G7 countries has shrunk over the past 30 years, to account for 29.9% of global gross domestic product in 2023, down from 50.7% in 1980, according to the International Monetary Fund.
“We will see the impact of the discussions we had here in Hiroshima. The G7 countries were able to discuss with some of the most important emerging economies in the world,” said António Guterres.
Japan, host of the G7 summit, made a point of inviting the leaders of the countries of the southern hemisphere to the talks in Hiroshima. Indian Prime Minister Narendra Modi, Brazilian President Luiz Inacio Lula da Silva and Indonesian President Joko Widodo were among the guests.
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