Distinguished co-facilitators of the Summit of the Future Excellences,

I have the honor to deliver this statement on behalf of the Group of 77 and China.

The Group appreciates the hard work that you, our co-facilitators made regarding chapter 5 on Transforming Global Governance of the Pact for the Future, so far.

Excellencies, bold and ambitious reforms that create a stable, sustainable, and inclusive international financial architecture are urgently needed, to broaden and strengthen the voice and participation of developing countries in international economic decision-making, norm-setting and global economic governance.

Chapter Five however falls short of reflecting the urgent actions needed to make the international financial architecture more equitable and responsive to the needs of developing countries. This implies further governance reform in International Financial lnstitutions to broaden and strengthen the voice and participation of all developing countries in international economic decision-making, especially the IMF and the World Bank; improved sovereign debt architecture with the meaningful participation of all developing countries; urgent rechanneling of unutilized Special Drawing Rights (SDRs) to developing countries and a new allocation of SDRs; to catalyze their potential as a source to finance sustainable development

This chapter ought to emphasize the need for urgent and sizeable recapitalization of the Multilateral Development Banks to meet the significant financial needs of developing countries; scaling up of grants and concessional financing; the use of innovative mechanisms to increase fiscal space of developing countries; re-examining IMF lending policy, including conditionalities, access limits, surcharges and rationalizing the role of credit rating agencies. It is critical that the mandates of the Multilateral Development Banks are aligned with the SDGs.

We also look forward to the commitment by Member States to the elaboration and adoption of a UN Framework Convention on international cooperation on Tax, since promoting inclusive and effective international tax cooperation is a critical prerequisite for the achievement of the SDGs. We urge all countries to continue to participate and negotiate in good faith towards this end.

Excellencies,

A restructured multilateral system would be incomplete without an improved sovereign debt architecture. The actual architecture that has evolved to deal with debt crises strongly favors creditors and is inadequate to deal with increasingly chronic financial vulnerabilities across developing countries and a debt landscape that has grown massively in scale and complexity.

Furthermore, the Group reiterates the importance of advancing in the establishment of the set of measures of progress on sustainable development that complement or go beyond gross domestic product through a UN-led intergovernmental process in consultation with all relevant stakeholders. The Pact for the Future is an important opportunity to follow up and implement the mandate agreed upon in this year's resolution on Financing for Development.

Therefore Excellencies,

We the Group of 77+China stress the urgent need for chapter five to emphasize the comprehensive reform of the international financial architecture and a more inclusive and coordinated approach to global financial governance, with greater emphasis on cooperation among countries, including through increasing the representation of developing countries in global decision and policy-making bodies which will contribute to growing and stabilizing the global economy and achieving the SDGs.

Thank you.