President William Ruto called for the creation of a new global financial system not controlled by The World Bank and the International Monetary Fund (IMF).
President Ruto was speaking on Thursday, June 23, during a round-table with President of France Emmanuel Macron, International Monetary Fund Managing Director Kristalina Georgieva and the President of the World Bank Group Ajay Banga in the ongoing New Global Financial Pact Summit in Paris.
He said that in the new system, countries should access financing commensurate with the taxes imposed rather than the debt financing model operated by the IMF and World Bank.
“We need a financial transactions tax system at the global level where countries such as Kenya pay. We don’t want anything for free,” he said.
He explained that it would ensure resources are distributed more evenly, ensuring fair access to resources for all.
The World Bank boss failed to convince Ruto to support a proposal to have the private sector help fund crucial services that are not profit-generating.
“Surely, Ajay, how do you persuade the private sector to bring their money for the public good? The private sector is driven by profits, my friend. Unless you persuade me otherwise,” Ruto said.
Addressing the gathering, President Ruto stressed that financing for Kenya and other African countries was at the mercy of the IMF and World Bank and cannot afford to remain stagnant.
“IMF and World Bank, you have the final say, we have no say. We need another organisation of equals,” he emphasised.
Echoing President Ruto’s call for a review of the global financial system, President Macron noted that a bold and targeted approach can transform the world.
He said it is also time we integrated debt sustainability and climate vulnerability.
“We need a diverse but inclusive discussion on climate change to fix the game. No one should be left behind; not even China,” explained Macron.
He called for the reconditioning of the World Bank and the IMF on how they operate vis-à-vis the realities at the grassroots.
“It should be done with speed and urgency,” he added.
An estimated 50 Heads of State, along with international institutions and civil society representatives, are attending the Summit.