In Davos speech, UN chief highlights private sector role in pandemic recovery

By United Nations Secretariat

In Davos speech, UN chief highlights private sector role in pandemic recovery

The private sector has a key role to play in lifting countries out of both the COVID-19 and climate crises, UN Secretary-General António Guterres told international business leaders.

“We need you more than ever to help us change course, end fragility, avert climate catastrophe and build the equitable and sustainable future we want and need”, he said in a speech to the Davos Agenda gathering of the World Economic Forum, which is taking place online this year instead of in the Swiss Alps.

The Secretary-General addressed the forum as the UN released its latest report which warns that global economic recovery from the pandemic remains precarious.

Time to change course

COVID-19 has generated the worst economic crisis for nearly a century, exposing inequalities and fragilities both within and among countries, Mr. Guterres said, speaking from New York.

“We have reached a moment of truth. In 2021 we must address these fragilities and put the world on track. It is time to change course and take the sustainable path. And, this year, we have a unique opportunity to do so. We can use our recovery from the COVID-19 pandemic to move from fragilities to resilience,” he stated.

The Secretary-General emphasized that pandemic recovery must be inclusive while also tackling climate change and biodiversity loss.

Vaccines for all

“Inclusive and sustainable recovery around the globe will depend on the availability and effectiveness of vaccines for all, immediate fiscal and monetary support in both developed and developing countries, and transformative longer-term stimulus measures”, he said.

While COVID-19 vaccines have been developed, distribution has been uneven, he said, as richer nations have received doses while the world’s poorest countries have none.

Reiterating that vaccines must be seen as global public goods, he called for funding for the COVAX Facility, the mechanism working to ensure equal access to all countries.

Mr. Guterres also underlined the need to address structural inequalities that have made so many societies vulnerable, including through debt relief for countries that need it.

Flick the ‘green switch’

On climate change, the Secretary-General stressed that the central goal this year is to build a global coalition to achieve carbon neutrality by 2050.

“Every country, city, financial institution and company needs to adopt credible plans backed by intermediate goals for transitioning to net zero emissions by 2050, and to take decisive action now to put themselves on the right path,” he said, adding “every sector must do its part, from aviation and agriculture to transport, shipping and industry.”

The world also needs to “flick the ‘green switch’” to renewable energy, which will create new jobs and a healthier future. The UN chief said all of this is within reach, as more countries register their commitment.

He called for private sector action towards achieving a sustainable future for all, and in implementing the Paris Agreement on Climate Change, which seeks to limit global warming.

Women and girls bear the brunt

The pandemic also pushed 131 million more people into poverty, many of whom were women, children, and members of marginalized communities. The crisis has disproportionately affected women and girls, who have faced an increased risk of devastation, poverty, and violence.

Although some $12.7 trillion in massive and timely stimulus measures prevented a total collapse of the world economy and averted another ‘Great Depression’, the last manifest in the 1930s, the stark disparity in the size of these packages mean developed and developing countries will be on different paths to recovery.

Additionally, financing stimulus packages has increased public debt globally by 15 percent, representing a potential burden for future generations unless investments are made to promote growth.