United Nations Secretary-General Antonio Guterres has advocated for the reform of the Security Council and the Bretton Woods Institutions, stating that these entities reflect power relations of the past and need to adapt to the “realities of today’s world.”

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Speaking in Hiroshima, Japan, during the G7 summit, he emphasized that the existing global financial structure has become “outdated, dysfunctional, and unfair,” and has failed to offer a reliable safety net in the face of recent crises such as the COVID-19 pandemic and the Russian invasion of Ukraine.

Our international financial architecture is outdated, dysfunctional and unfair.

It's time to think seriously about the reform.

— António Guterres (@antonioguterres) May 20, 2023

Addressing the growing sentiment among developing nations about the lack of progress in reforming these outdated institutions, Guterres mentioned the robust growth forecast for India’s economy and the substantial contribution of China and India to global growth, expected to account for about 50 percent by 2023. The diminished economic clout of the G7 nations was also highlighted; the group’s share of global GDP has reduced significantly over the past few decades.

Guterres noted that the discussions at the G7 summit, which included leaders from key emerging economies, would potentially influence the trajectory of institutional reforms. The meeting’s host, Japan, ensured the participation of figures from the Global South, such as Indian Prime Minister Narendra Modi, Brazilian President Luiz Inacio Lula da Silva, and Indonesian President Joko Widodo.