Distinguished co-facilitators,
Excellencies,
Colleagues,

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

We thank you for convening this informal consultation to address the elements that should be reflected in Chapter 5 entitled "Transforming Global Governance".

The Group emphasizes that Chapter 5 must clearly address the reform of the international financial architecture. The current architecture has failed to deliver financing and stability needed to achieve the SDGs. The responses that developing countries need go beyond the capacities of the existing multilateral and international financial institutions like the IMF and the World Bank.

Therefore, this Chapter should reflect 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 IFIs 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 rechannelling of unutilized Special Drawing Rights (SDRs) to developing countries and a new allocation of SDRs; inclusive and effective platforms to design and discuss international tax rules and norms at the UN; 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; re-examining IMF lending policy, including conditionalities, access limits and surcharges and rationalizing the role of credit rating agencies.

The Group expects to have substantive discussions on this matter as the Pact for the Future will speak to the reform of the Bretton Woods Institutions, amongst other IFIs. The United Nations provides a universal, inclusive and legitimate forum for addressing these challenges. Its unique situation needs to be used as a platform to advance the reforms to the international architecture. Any initiative intended to address the reform of the IFA must be inclusive. The Group will be submitting to you written inputs on this matter.

The Group reiterates the importance to discuss in this Chapter the need to advance 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 2C resolution on FfD.

Distinguished co-facilitators,

In the path towards a more just world for the future, it is necessary to change the current unjust and exclusionary international order. In this regard, the Pact for the Future must call on States to refrain from promulgating and applying any unilateral economic, financial or trade measures not in accordance with international law and the Charter of the United Nations, since they affect dramatically the rights and dignity of the people living under those illegal measures and impede the full achievement of economic and social development, particularly in developing countries. For the Group this Chapter must have a clear reference to this matter.

Finally, the Group reiterates that this Chapter must include urgent policy changes and concrete actions, if we are to avoid the gaps between developed countries and developing countries becoming a vicious circle, with the financing divide limiting countries' ability to invest in the SDGs and their resilience to external shocks.

Thank you.