Kenyan President William Ruto has strongly criticized the global lending system, labeling it as unfair and punitive, during an interview Today, Thursday, at a summit in Paris focused on reshaping the international financial order to better assist developing nations in combating poverty and climate change.
Mr.Ruto did not hold back in expressing his dissatisfaction. He highlighted the significant disparity in interest rates, with poorer countries often paying up to eight times more than wealthier nations due to being perceived as risky borrowers.
The president emphasized that Kenya is not seeking handouts but rather advocating for a more equitable system. He voiced his frustration with the portrayal of Africans as victims of climate change who are constantly seeking favors and complaining. Instead, he emphasized the importance of equal participation in finding solutions.
Ruto’s focus lies on attracting private investment for Kenya’s development rather than relying solely on traditional development aid. However, he also called for comprehensive reforms within institutions such as the International Monetary Fund (IMF) and the World Bank.
The Kenyan President further expressed the need for a reconsideration of debt management strategies for developing nations and proposed the implementation of international taxes on shipping, aviation, and financial transactions.
Kenya currently spends approximately $10 billion annually to service its debt, and Ruto believes that redirecting these funds toward the country’s development would have a substantial and immediate impact. He suggested converting the debt owed to international lenders into a long-term loan facility with a grace period, allowing Kenya to fulfill its financial obligations without burdening its progress.
Ruto’s stance aligns with the summit’s objective of reshaping the global financial system to better support developing countries. The French President, Emmanuel Macron, also emphasized the need for change, stating that countries should not have to choose between reducing poverty and protecting the planet. The failure of wealthy nations to fulfill their pledge of providing $100 billion in annual aid by 2020 to help developing countries address climate change has strained trust between nations.