Sri Mulyani: The G7 and G20 have a vital role in helping developing countries

High-cost financing is also one of the tough challenges for developing countries

Jakarta ( – Minister of Finance Sri Mulyani stated that the G7 and G20 countries have a vital role to play in encouraging and harmonizing various policies to jointly assist developing countries in overcoming the latest challenges.

This statement was made by Sri Mulyani at the Joint Dialogue with Partner Countries on the sidelines of a meeting of Ministers of Finance and Central Bank Governors of the G7 Countries on 11-12 May 2023 in Niigata, Japan.

“Developing countries are still at risk of contusion (scarring effect) as a result of the pandemic, geopolitical tensions that continue to strengthen, and the spillover effect of monetary tightening policies in various countries. This is where the G7 and G20 play a vital role,” said Sri Mulyani as quoted from an official statement received in Jakarta, Saturday.

In addition, he revealed that developing countries are also in the midst of global challenges which are faced with the risks of an unstable financial sector, geopolitics, and the development of artificial intelligence.artificial intelligence).

On the other hand, high-cost funding (high-cost financing) is also one of the tough challenges for developing countries.

Thus, strengthening international cooperation, including the role of multilateral development banks in supporting development priorities in developing countries is urgently needed.

“Multilateral development banks also need to increase their capacity to deal with global problems such as climate change, food crisis and pandemics,” he added.

In this case, Sri Mulyani said that Indonesia and the G20 member countries had formed one Pandemic Fund during the G20 Presidency in 2022 to strengthen the ability and readiness of developing countries to better respond to the risks of the next pandemic.

Meanwhile, financing for infrastructure development also needs support from developed countries.

Affordable infrastructure funding will greatly assist developing countries in spurring economic growth, said Sri Mulyani.

Also read: Sri Mulyani met the US Minister of Finance, discussed cooperation with donor agencies
Also read: Minister of Finance: Indonesia’s economy is good amidst challenging global conditions
Also read: Minister of Finance: World problems today are more complex than the pandemic era

Reporter: Agatha Olivia Victoria
Editor: Click Dewanto


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