G24 seeks balanced growth and debt reform

At the IMF and World Bank annual meetings in Bangkok, the G-24 responded to reporters on the importance of balancing taxation and sovereign debt to drive economic growth.

Borrowing costs and debt financing were key topics, with G-24 Chairman Taiwo Oyedele noting that global conflicts, trade policies, commodity prices, and climate shocks have hindered global growth.

Oyedele stressed the importance of adopting new technologies. He wants artificial intelligence used in a regulated manner. However, he said that adopting new technologies, such as artificial intelligence, without proper regulation can drive growth while increasing unemployment. He said growth is not for the sake of growth. It has to be job-rich and inclusive. And at the end of the day, it must translate into better living standards for our people.

Iyabo Masha, director of the G-24 Secretariat, highlighted the need for microeconomic stability, stating that it supports policies that promote economic growth and is essential for building on structural job-related policies.

Oyedele emphasized that paying down sovereign debt requires a balance between tax collection and debt. He said it is not one or the other. The ultimate goal is to cater to the people.

Debt restructuring has become more robust since Sri Lanka restructured its sovereign debt in December 2024, but it still constrains economic growth, according to Masha, who also noted the IMF’s updated debt sustainability framework and the Sovereign Debt Roundtable’s revised restructuring playbook.

The Borrowers’ Platform, backed by the UN Conference on Trade and Development, held its inaugural Governing Council meeting, providing a forum for debtor countries to discuss sustainable debt practices and suitable debt types.

Masha reflected on the progress made since an event in 2023, saying “we’ve come a long way” but acknowledging that there is still a long way to go.