Minister of Finance, Fernando HaddadPaulo Pinto / Agência Brasil
Published 04/18/2024 20:09
“At the heart of these efforts is the need to ensure that support from multilateral development banks is guided by national development priorities, providing tangible benefits to beneficiary countries,” said Haddad in his speech. Currently, member countries of these institutions contribute proportionately participation in these banks, which favors the richest nations.
According to Haddad, Brazil is developing a plan that makes multilateral institutions “better, bigger and more effective”. The finance ministers and presidents of the Central Banks of the G20, a group of the 20 largest economies on the planet, plus the European Union and the African Union, will vote on the proposal in October.
“We are advancing discussions on the general increase in capital and the possible creation of a mechanism to review the capital needs of these institutions, in order to ensure that they continue to be able to fulfill their mandates and achieve more ambitious global objectives”, said Haddad. He added that he intends to take the suggestions to other multilateral bodies.
Brazil and other emerging countries ask for greater weight in the decisions of multilateral banks so that they have more flexibility in the use of loans. This is because financing is tied to specific uses, which delays the release of resources to deal with sudden events related to the climate crisis and for ecological transition projects.
Before the meeting, Haddad met with the president of the New Development Bank, Dilma Rousseff, also known as the Brics Bank.
Taxing the super rich
“Across the planet, you have governments struggling with terrible budgets, unable to provide healthcare, education, housing for their population and (struggling with) billionaires who should be paying their fair share of taxes (and) are hiding their money elsewhere . I think we need to move towards a global approach to this”, declared the minister.
He highlighted having received support from France and Spain. However, German Finance Minister Christian Lindner said he was against the Brazilian proposal, arguing that the countries have an appropriate taxation system.
Early return
On Friday (19), the minister would participate in a breakfast at the International Monetary Fund and the Fund’s plenary meeting in the morning. In the afternoon, Haddad would speak with the European Commissioner for Economic Affairs, Paolo Gentiloni, and attend the meeting of the World Bank’s development committee.
Multilateral financial institutions, such as the World Bank and the Inter-American Development Bank, must have more resources and greater participation from emerging countries in the administration to face climate change and the increase in hunger, said, this Thursday (18), the Minister of Finance, Fernando Haddad. In his opening speech at the second meeting of the G20 finance track, in Washington, he defended the reform of the governance of international institutions.
“At the heart of these efforts is the need to ensure that support from multilateral development banks is guided by national development priorities, providing tangible benefits to beneficiary countries,” said Haddad in his speech. Currently, member countries of these institutions contribute proportionately participation in these banks, which favors the richest nations.
According to Haddad, Brazil is developing a plan that makes multilateral institutions “better, bigger and more effective”. The finance ministers and presidents of the Central Banks of the G20, a group of the 20 largest economies on the planet, plus the European Union and the African Union, will vote on the proposal in October.
“We are advancing discussions on the general increase in capital and the possible creation of a mechanism to review the capital needs of these institutions, in order to ensure that they continue to be able to fulfill their mandates and achieve more ambitious global objectives”, said Haddad. He added that he intends to take the suggestions to other multilateral bodies.
Brazil and other emerging countries ask for greater weight in the decisions of multilateral banks so that they have more flexibility in the use of loans. This is because financing is tied to specific uses, which delays the release of resources to deal with sudden events related to the climate crisis and for ecological transition projects.
Before the meeting, Haddad met with the president of the New Development Bank, Dilma Rousseff, also known as the Brics Bank.
Taxing the super rich
During the afternoon, the minister met with US Senator Bernie Sanders, discussing the proposal for taxation of the super rich. The parliamentarian said he will pressure President Joe Biden’s government to support the measure, presented for the first time at the G20 ministers’ meeting in São Paulo, at the end of February.
“Across the planet, you have governments struggling with terrible budgets, unable to provide healthcare, education, housing for their population and (struggling with) billionaires who should be paying their fair share of taxes (and) are hiding their money elsewhere . I think we need to move towards a global approach to this”, declared the minister.
He highlighted having received support from France and Spain. However, German Finance Minister Christian Lindner said he was against the Brazilian proposal, arguing that the countries have an appropriate taxation system.
Early return
This was the last day of the Finance Minister’s trip to the United States. He anticipated returning to Brazil to discuss negotiations on the government’s economic agenda with Congress
On Friday (19), the minister would participate in a breakfast at the International Monetary Fund and the Fund’s plenary meeting in the morning. In the afternoon, Haddad would speak with the European Commissioner for Economic Affairs, Paolo Gentiloni, and attend the meeting of the World Bank’s development committee.
