African leaders demand financial systems reform; launch ‘Africa Club’ at 37th African Union Summit
- February 28, 2024
- Posted by: OptimizeIAS Team
- Category: DPN Topics
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African leaders demand financial systems reform; launch ‘Africa Club’ at 37th African Union Summit
Subject: IR
Section: Int. Grouping
Context:
- The 37th African Union Summit concluded on February 18, 2024, in Addis Ababa, Ethiopia, with discussions among heads of state and government members on key issues like education, climate change, and the economy.
Details:
- Despite Africa’s minimal contribution to the global climate crisis, the continent faces significant adverse effects from climate change.
- African nations have been diverting public funds to mitigate these impacts, often at the expense of other critical areas such as achieving the Sustainable Development Goals (SDG) set by the United Nations.
- The summit highlighted the growing need for improved access to quality financing for climate and development initiatives in developing countries.
- This includes calls for reforms in the global financial system to better meet the financing needs of these countries, emphasizing the importance of adjusting the interconnections among international financial institutions, economic governance, and financial regulatory frameworks.
- The AU is the most recent recipient of ‘full member status’ to the Group of 20 (G20), pointing to the continent’s growing voice on the global stage.
- The proposals at the AU Summit underscored the bloc’s vision for addressing economic frameworks that no longer serve their interests and needs.
Key highlights related to financial system reforms from the AU summit:
Initiatives | Description |
Launch of Alliance of African Multilateral Financial Institutions, ‘Africa Club’ |
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Establishing African Union Financial Institutions |
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African leaders’ demands for financial system reforms |
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Joint taskforce on international taxation |
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