Portugal’s president calls for reforms to United Nations, global financial system

By Alyssa McMurtry

OVIEDO, Spain (AA) – Portugal’s president said Tuesday that without reforms to the United Nations and world financial institutions, goals related to peace and sustainable development will remain out of reach.

“We are lagging behind,” said Marcelo Rebelo de Sousa, addressing the UN General Assembly in New York. “We urgently need to reform institutions, many of which formed in the first half of the last century.”

For instance, he said the concept of security “responds to a world that no longer exists,” and called for reforms to the UN Security Council. He said countries like Brazil and India should become permanent members, breaking with the current system of five permanent members.

He also argued that the current financial institutions “are incapable of financing sustainable development with equity and justice” because rich nations get preference over poorer ones.

“We need a new Bretton Woods system,” he said, referring to the 1944 agreement that established the rules for commercial relations among dozens of countries, and famously led to formation of the IMF and World Bank.

He highlighted the deal that Portugal recently struck with Cape Verde as an example of how finance needs to work. In June, Lisbon agreed to swap the entire €140 million ($150 million) debt it was owed for investments into Cape Verde’s climate and environmental fund.

He warned that if such reforms do not happen, multilateralism will fail humanity.

“If not, we will continue to hear the same influential people promising things that do not deliver. We understand why people believe less and less in those who govern them.”