G-24 urges stronger IMF safety net and multilateral support for emerging economies

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G-24 urges stronger IMF safety net

Highlights

G-24 urges completion of IMF 16th and 17th General Review of Quotas to realign voting power, boost IMF resources, and reduce funding reliance on voluntary contributions.
The group calls for World Bank expansion of innovative financing tools and affordable lending, and improved frameworks for debt restructuring and transparency to address debt vulnerabilities.
G-24 demands the $300 billion annual climate finance pledge be met by 2035, expanded adaptation finance, and multilateral cooperation on tax reforms and global governance matters.

Calls for IMF, World Bank and debt reform

As reported by the International Monetary Fund, the G-24 is calling for stronger multilateral action to support vulnerable economies, including a well-resourced, quota-based IMF and faster progress on quota reforms. The group says timely implementation of the 16th General Review of Quotas would strengthen IMF finances, reduce reliance on borrowed resources and improve the Fund’s capacity to support member countries.

The statement also presses for timely and meaningful outcomes under the 17th General Review of Quotas, including a quota realignment that better reflects countries’ positions in the global economy while protecting the voice of emerging markets, developing economies and the poorest members. It opposes the inclusion of voluntary financial contributions in a revised quota formula.

The G-24 says regular reviews of IMF policies should result in more even-handed implementation and greater flexibility for the priorities of emerging market and developing economies. It adds that Fund programs should support growth, protect social spending and investment, and avoid adjustment paths that could weaken recoveries.

On the World Bank, the group says strategic commitments in agriculture, energy and social protection remain central to reducing poverty, creating jobs and building resilience. It also backs continued work on innovative financing tools, including risk-sharing facilities, hybrid capital, portfolio guarantees and the originate-to-distribute approach, to expand lending capacity at affordable cost.

The statement highlights debt vulnerability as a major obstacle to inclusive growth across many developing economies. It says updates to debt sustainability frameworks, the G20 Common Framework template, the Global Sovereign Debt Roundtable playbook and the new Borrower’s Platform supported by UNCTAD could improve debt restructuring, transparency and coordination among creditors.

Climate finance and global governance concerns

The G-24 says climate action must remain guided by equity and the principle of common but differentiated responsibilities, arguing that transition pathways need to reflect differing national circumstances and development priorities. While welcoming stronger attention to climate risk in debt assessments and the extension of the World Bank’s Climate Change Action Plan, the group warns that financing for mitigation, adaptation, loss and damage, biodiversity protection and resilient infrastructure remains insufficient.

It calls for the full and timely delivery of at least $300 billion in annual climate finance by 2035, a target established at COP29, with developed countries taking the lead. The group also underscores the need for a significant expansion of adaptation finance, particularly as some multilateral climate funding pledges are withdrawn.

Beyond climate policy, the G-24 says multilateral cooperation is needed to mobilize domestic resources and strengthen sustainable development financing. It supports international tax reforms aimed at curbing profit shifting, tax avoidance and illicit financial flows, while urging development partners to scale up aid commitments as global needs rise.

The group also argues that restoring confidence in the global economy requires a rules-based multilateral system grounded in national sovereignty and the principles of the UN Charter. It calls for closer scrutiny of the cross-border economic effects of unilateral sanctions and for broader collaboration among the Bretton Woods institutions, regional development banks and other international bodies, including on governance challenges tied to artificial intelligence and global trade.

In our earlier article on UNDP’s push to mobilize private capital for developing countries as aid flows shrink, we covered how the agency is expanding partnerships with the World Bank and other financial institutions to support investment, job creation and risk management. The piece also noted the strain from repeated shocks—energy costs, climate losses and tighter financial conditions—and highlighted UNDP’s pilots and insurance initiatives aimed at keeping vulnerable economies investable.

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