GL highlights need for WB ‘debt forgiveness’ in current emergency situation

G 20 Interfaith Forum:

Foreign Minister Prof. G.L. Peiris has the countries struggling to cope with immense difficulties due to the raging Covid-19 epidemic could receive huge relief if the World Bank agreed to a policy of debt forgiveness.

Prof. Peiris was speaking at the Ministerial Sessions on ‘Foreign Policy and Religion’ at the G20 Interfaith Forum in Bologna, Italy.

The Minister said: “Today, reference was made to COVID-19 and the responses to that. Look at the Bretton Woods institutions. The Bretton Woods institutions were also fashioned in a certain political context that is the end of the Second World War but the world has changed a great deal since then. But those institutions remain largely as they were. Now the developing world in particular, if the World Bank, for example, were to agree to a policy of debt forgiveness in the excruciatingly difficult circumstances that we have today, then countries that are developing would be able to use their own scarce resources for projects connected with the welfare of their populations. Now take my own country Sri Lanka. We normally earn 4.2 billion dollars a year from tourism. That has come almost to a complete stop. Then our trade relations have been affected. Money coming into the Sri Lankan Treasury from the efforts of our expatriates working abroad in countries like Italy has been affected. So in that situation, if the World Bank were to agree to a policy of debt forgiveness, I think that would greatly accelerate and facilitate the economic development of our countries.”

Questioning the status of the UN system, Prof. Peiris asked whether the world body is functioning today in the manner that was envisaged by the founding fathers. “If you look at the seminal documents of the United Nations system- the Charter of the United Nations, the Declaration of Human Rights- are we really behaving in the manner that was envisioned by these sacrosanct instruments? I don’t think one could sincerely answer that question in the affirmative.”

Prof. Peiris added: “Then look at the composition of the Security Council. Does that in any way reflect the reality of the modern world? It does not. It reflects a certain balance of powers that was only realistic at the conclusion of the Second World War. But today there are other emerging powers. I won’t name countries but the entire organisation needs to be basically overhauled to bring it in line with contemporary realities. The Economic and Social Council needs to be strengthened. Again, there has to be an emphasis on equality, on human dignity. The whole world, not a section of the world. It is not one section – affluent, powerful, dominating the rest of the world and using the United Nations system as an instrument for their domination. That is what creates a certain lack of confidence in the organs and the structures associated with the United Nations system. So I think these are some of the critical issues, imperative issues that we need to address at this time.”