Global Courant
Kenyan President William Ruto doesn’t hold back when he describes the global lending system: it’s “unfair, it’s punitive, it doesn’t give everyone a fair chance”. Ruto made his blunt assessment in an interview with AFP on the sidelines of a two-day summit in Paris in which he sought to revamp the international financial order to better help developing countries fight poverty and climate change.
Despite this, Ruto stressed that Kenya is not looking for handouts. He expressed his opposition to continuing a narrative that portrays Africans as victims of climate change who are constantly seeking favors and complaining. Instead, he emphasized the importance of equality and active participation in finding solutions. Ruto expressed a preference for attracting private investment rather than relying solely on development aid for Kenya. However, he also called for reforms within institutions such as the International Monetary Fund and the World Bank.
Ruto advocated a re-evaluation of debt management strategies for developing countries, as well as the introduction of international taxes on shipping, aviation and financial transactions. He highlighted that Kenya is currently spending $10 billion a year on paying off its debt and suggested converting the debt owed to international lenders into a 50-year loan facility with a 20-year grace period. This approach would allow Kenya to allocate funds to national development projects and have a significant and immediate impact.
At the summit, French President Emmanuel Macron stressed the need to revitalize the global financial system, claiming that countries should not have to choose between poverty reduction and environmental protection.
The inability of Western countries to meet their commitment to provide $100 billion annually by 2020 in aid to help developing countries transition to a green economy and build resilience to climate change has damaged trust between developing and wealthy countries affected. This lack of confidence is particularly acute as the COP28 climate summit approaches in Dubai later this year. Determined to show a robust African response to climate change, Ruto announced that Kenya will host the Africa Climate Summit in early September.
Ruto highlighted the inconsistency of the Western powers, which quickly provided substantial financial support to Ukraine after Russia’s invasion, while demonstrating unwillingness to tackle climate change. He stressed that climate change poses an existential threat to everyone and called for collective action, emphasizing that it is not just the responsibility of rich countries to shoulder the costs. Ruto expressed a desire to restore confidence and avoid blame games, acknowledging the urgency of the climate crisis by using strong language to emphasize the seriousness of the situation.
In summary, President Ruto advocates a fairer global loan system and greater participation of developing countries in finding sustainable solutions to combat poverty and climate change. He seeks to attract private investment while calling for reforms of international debt management institutions and practices. Ruto emphasizes the importance of trust, collective responsibility and urgent action to tackle climate change.
KENYA PRESIDENT REPORTS ‘UNFAIR’ GLOBAL LOANS
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