The Intergovernmental Group of 24 (G24) has urged the International Monetary Fund (IMF) and the World Bank to make concessional financing more affordable for developing countries facing rising debt burdens and high borrowing costs.
The chairman of the G24, Taiwo Oyedele, made the call during a press briefing at the ongoing IMF and World Bank Annual Meetings in Thailand, stressing the need for financing arrangements that would help vulnerable economies manage fiscal pressures without undermining growth and social welfare.
Oyedele said developing countries, particularly those in Africa, were grappling with elevated debt levels and the increasing cost of servicing their obligations.
He cited estimates suggesting that developing countries were paying about $500bn more in borrowing costs than developed economies, highlighting the disparity in financing conditions between the two groups.
He urged the IMF and World Bank to introduce measures that would make short-term concessional borrowing more accessible and affordable, particularly for vulnerable economies.
According to him, countries must also strengthen domestic revenue mobilisation and identify opportunities to improve spending efficiency to manage fiscal challenges.
However, he cautioned against increasing the tax burden on vulnerable households and productive sectors at a time when governments were already under pressure to meet competing development needs.
“This is the wrong time to impose new taxes or increase the burden of tax, particularly on the vulnerable population and productive sectors of the economy,” he said.
The G24 chairman also called for long-term frameworks and policies to mobilise private capital, arguing that limited public resources should be prioritised for essential social services.
He said governments needed to ensure that economic growth translated into employment and improved living standards rather than focusing exclusively on macroeconomic indicators.
Oyedele warned that artificial intelligence (AI), if not properly regulated and managed, could worsen unemployment in developing countries with large youthful populations.
He stressed that governments and multilateral institutions shared the responsibility of promoting inclusive growth and creating conditions for sustainable employment.
While advocating policies that protect livelihoods, Oyedele defended macroeconomic stability, describing it as the foundation for sustainable growth, structural reforms and infrastructure development.
He said stable economic conditions were necessary for governments to implement effective policies and attract investment capable of supporting long-term development.
On food security and climate change, Oyedele called for stronger international cooperation to protect livelihoods while addressing environmental challenges.
He also cautioned against export restrictions, tariffs and non-tariff barriers, noting that such measures could complicate efforts to address shared global economic challenges.
A representative of the Latin America and Caribbean region said countries vulnerable to El Niño had received support through financing mechanisms provided by development institutions, including the World Bank and regional multilateral banks.
The representative said contingent credit facilities had helped strengthen preparedness, although some economic sectors could continue to face significant challenges.
The G24 coordinates the positions of developing countries on international monetary and development finance issues, providing a platform for members to advance shared priorities in discussions with multilateral financial institutions.
