Fouzi Lekjaa, Morocco’s Minister Delegate for the Budget, emphasized “the need for profound reflection and collaborative efforts to overhaul the global financial system in response to the world’s pressing economic and financial challenges.
He highlighted the inadequacies of the current global financial system and its capacity to withstand these shifts, citing the string of crises and global economic shocks, from the COVID-19 pandemic to the ongoing geopolitical tensions and intensifying climate change.
Addressing a roundtable on reforming the global financial system, Lekjaa underscored the initial purpose of this system: to foster global economic and financial integration and stability, rooted in principles of transparency, efficient business operations, and equitable wealth distribution.
He further elaborated that “the profound changes the world has witnessed since the Bretton Woods Conference in 1944 have exposed the global financial system’s inadequate capacity to adapt to an ever-evolving economic and financial landscape, and consequently, to address crises, whether cyclical or systemic.”
There is a pressing need for a genuine multilateral framework that empowers developing countries to have an international voice comparable to that of developed nations.
The Minister Delegate for the Budget referred to the proposals made by António Guterres, the Secretary-General of the United Nations, noting that they “come at an opportune time to reopen the discussion on redesigning the global financial system to make it more equitable, more sustainable, and more flexible.”
He highlighted that these proposals, which contribute to the preparatory work for the upcoming Summit on the Future scheduled for September, also emphasize “the grievances of the countries of the south, which feel marginalized when it comes to setting the structure and operating rules of the global monetary and financial system.”
Therefore, Lekjaa explained that “this is a formal call to enhance the participation and representation of these countries in the process of reforming the global financial system and to consider their legitimate expectations to strengthen their capacity to finance development and achieve the sustainable development goals.”
He emphasized that “it is now necessary to make changes to the vision related to the executive and organizational model of international financial institutions, to increase the participation of developing countries in the management of these institutions, and thus lay the foundation for a new approach to development financing that takes into account national characteristics while encouraging regional integration initiatives.”
Speaking on regional integration, Lekjaa highlighted Morocco’s initiatives to enhance Africa’s economic potential, such as the Nigeria-Morocco gas pipeline project.
This project paves the way for deeper regional electricity market integration, showcasing the full potential of effective South-South cooperation.
He added that “it aims to boost energy security in dozens of African countries, contributing to their economic and social stability by creating jobs and improving regional economic competitiveness.”
The Minister Delegate also mentioned the Atlantic Initiative launched by King Mohammed VI to enhance the Sahel countries’ access to the Atlantic Ocean.
He noted that “this initiative aims to boost regional integration and development by strengthening economic cooperation to seize shared opportunities in strategic sectors, including infrastructure development and regional transportation.”
Lekjaa emphasized that “the Kingdom of Morocco, under the leadership of King Mohammed VI, has been committed for over two decades and fully understands the importance of issues related to reforming the international financial structure.”
He added, “our country is convinced that a multilateral approach based on cooperation and solidarity is the only way to tackle the challenges we face. This is why Morocco fully supports global efforts, particularly those by the UN Secretary-General, to reform the global financial system.”
Lekjaa explained, “alongside these guiding principles, the reform of the global financial system will benefit from focusing on the principles outlined in the Marrakech Declaration, adopted during last year’s annual meetings of the World Bank Group and the International Monetary Fund.
He elaborated further that “this aims to leverage multilateralism for inclusive and sustainable growth and calls for global cooperative action for a better future.”
The Minister Delegate highlighted that “the declaration emphasized the need to strengthen and modernize global cooperation by enhancing the performance of the global monetary and financial system, improving its adaptability, and aligning global governance structures with the demands of the 21st century.”
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