Economic slowdown: G-24 seeks access to concessional funding for poor nations

The Intergovernmental Group of Twenty-Four on International Monetary Affairs and Development (G-24) has called for access to concessional financing to enable poor nations to withstand global economic shocks.

Concessional funding is a type of financial support provided to developing countries by major lenders, such as multilateral funds and development banks, at lower rates and used to accelerate development objectives.

The G-24 made the demand on Tuesday at a news conference held in Washington DC.

The call followed a meeting of the group’s members at the ongoing World Bank and International Monetary Fund (IMF) conference in the United States.

The power bloc said global economies are hard pressed on multiple fronts, “with not just one, but two are wars, and trade wars, mounting debt burdens and an existential climate crisis”.

According to the group, with any slowdown in the global economy, developing countries are bound to be hit the hardest.

“If we fail to take swift and corrective actions today, the developing world is on the brink of falling further behind,” the G-24 warned.

“We are running up against time and inaction is not an option. While circumstances have made it more difficult to achieve a sustainable and inclusive future by 2030, we believe it remains possible with the right priorities and concerted international cooperation.

“As developing countries, we acknowledge the critical need to address the underlying structural weaknesses of our economies.

“Therefore, we are strongly committed to prioritising inclusive growth strategies that facilitate structural transformation, sound fiscal management, and macroeconomic stability.

“We believe that these measures will not only improve our economic resilience, but enhance our ability to attract and leverage private and external investments as well.

“Access to concessional financing is of paramount importance for developing economies to mount a strong defence against these compounding challenges.”

The group, therefore, called on international financial institutions to scale up support to vulnerable countries through more innovative and responsive financing solutions.

These, the G-24 said, would help developing nations to sustain productivity, enhance long-term growth prospects, “and increase resilience to economic shocks”.

“But this alone will not be enough. More decisive steps are required to reinvigorate the global financial safety net and the development financing landscape,” they said.

“We must remember that we are all interconnected for better or for worse.”

They also stressed the need to intensify multilateral cooperation to reverse headwinds and restore global stability, “if we are to meet our development and climate goals by 2030”.

The intergovernmental body is a group of 24 developed countries that meet regularly to coordinate the positions of developing nations on international monetary and development finance issues.

Some African member-nations of the bloc are Nigeria, Ghana, Egypt, and Ethiopia.

In October 2023, the G-24 had called for sustainable debt relief for low-income countries