Comment: The post-war Bretton Woods international financial system is inadequate.

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Michel Miraillet is the French Ambassador to Canada.

International cooperation has never been more critical. A growing number of crises are debilitating the poorest and most vulnerable countries more than ever before.

We need to help the most vulnerable countries recover from the COVID-19 crisis, deal with the consequences of Russian aggression in Ukraine on their food and energy security, and cover the high costs of climate change and the consequences of extreme weather events. To do this, it is important to increase the finances.

The post-war international financial architecture, inherited from Bretton Woods, is not sufficiently adapted to meet the challenges of the 21st century.

The international community’s response to the crisis is fragmented, partial and inadequate. Firstly, the reduction resources provided by development institutions are not providing their potential in terms of impact, co-financing and adaptation to needs.

Second, the spread of tighter financing conditions for aid delivery and rising debt levels in developing countries are slowing investment there. Such measures ultimately do not provide a solution to the challenges facing developing countries.

Meanwhile, due to the lack of resources, there is not enough support for the development and protection of international public goods. At a time when we need effective multilateralism and enhanced cooperation more than ever, the world is at greater risk of geopolitical fragmentation.

Many G7 and G20 countries, as well as organizations and associations, share this observation with France and want to promote the same belief: we must act quickly and join efforts. We know we can rely on our highly committed Canadian partner to ensure the campaign is on the right track.

Therefore, we now call for review and funding. Together, we must drive change in our global financial system to make it responsive, fair and inclusive, fight inequality, finance climate change and protect biodiversity, and move closer to achieving the UN’s Sustainable Development Goals (SDGs).

It is the objective of the summit of the New International Financing Agreement, which will be held in Paris on June 22 and 23. This conference is meant to be inclusive, every country, every opinion and idea can be expressed.

The forum is part of positive progress. The World Bank, India’s G20 presidency and the launch of Brazil’s reform movement, the mid-term review of the SDGs and the commitments made at the COOP climate change meetings are reasons for hope to build on this momentum.

Concrete solutions have already started: the Paris Club and the G20 have launched an initiative for debt treatment, and France will play an important role in implementing integrated solutions within this common framework. We have proposed a $100-billion IMF special drawing rights for the most vulnerable countries.

All countries that can do so should participate in this effort. Several multilateral development banks have begun to respond to G20 demands and have taken initial steps to raise capital to increase their lending capacity.

But now, following the example of the Bridgetown Initiative, led by Barbados, it is a set of innovative solutions to address climate vulnerability affecting many middle-income developing countries.

We will introduce a reform agenda for development banks and the IMF to provide more financing to countries and global challenges. It is an agenda that aims to promote innovative approaches and tools to improve existing equipment and capital and support the poorest and most vulnerable countries.

It also aims to mobilize more private finance through risk sharing and guarantee mechanisms to support the domestic private sector and sustainable infrastructure. This requires leveraging our tools and public and private innovation and new financing methods.

To be more effective, our international financial institutions must work better together and better mobilize private savings than they currently do. To be more inclusive, we must above all give a greater voice to the most vulnerable countries in international forums.