Kuwait calls for reform of international financial architecture and enhanced representation of developing countries

Kuwait called on Thursday for reforming the international financial architecture to keep pace with economic transformations and enhance the representation of developing countries, while expanding the scope of concessional financing, reallocating Special Drawing Rights, transferring technology, and providing climate finance without increasing the debt burdens on developing nations.

This was stated in Kuwait’s address, delivered by Diplomatic Attaché Dalal Sharar to the Second Committee of the United Nations General Assembly, which deals with economic and financial matters, during the joint discussion on agenda items (Macroeconomic Policy Issues) and (Follow-up and Implementation of International Conferences on Financing for Development).

Sharar said that the global economy is going through a delicate phase characterized by slowing growth, mounting debt burdens, and declining external financing flows, which necessitates reforming the global financial system and strengthening the capacity of developing countries to confront economic challenges and achieve the Sustainable Development Goals.

She emphasized that protecting development gains requires ensuring the security of sea lanes, expressing Kuwait’s condemnation of Iran’s closure of the Strait of Hormuz and its threats to freedom of navigation there, as well as its continued obstruction and disruption of navigation in the Bab al-Mandab through its proxies in the region, in accordance with United Nations Security Council Resolution 2817.

She warned of the repercussions of these practices on energy supplies and global supply chains, and the resulting rise in prices of fertilizers, food, and energy, calling for ensuring freedom and safety of navigation in accordance with international law and the United Nations Convention on the Law of the Sea.

On the development efforts front, Sharar outlined the contributions of the Kuwait Fund for Arab Economic Development, which has financed more than a thousand development projects in 107 countries since its establishment in 1961, alongside its role in building national capacities, transferring expertise, and enhancing local partnerships to ensure the sustainability of development project outcomes.

In this context, she noted the launch of the Kuwait Emergency Response Fund last July, aimed at enhancing national preparedness, ensuring the continuity of essential services, and supporting recovery from crises.

Regarding the situation in the occupied Palestinian territories, Sharar drew attention to the scale of the humanitarian and economic disaster in the Gaza Strip, explaining that 92 percent of economic facilities have been damaged or destroyed, unemployment has exceeded 90 percent, and recovery and reconstruction needs have reached $71.5 billion.

She urged support for the Palestinian economy, ensuring the flow of humanitarian aid, and empowering Palestinian institutions to lead recovery and reconstruction efforts in the sector.