Multilateralism still alive but mandates and rules should be refreshed: PM Lee at G20 summit

NEW DELHI: Multilateralism remains alive but the mandates and rules of existing institutions should be refreshed, said Singapore’s Prime Minister Lee Hsien Loong on Sunday (Sep 10) at the Group of Twenty (G20) summit in New Delhi.

This includes pushing on with World Trade Organization (WTO) reforms and ensuring that WTO rules keep pace with digital transformation. The international financial architecture also needs to be reformed to respond to the challenges of sustainable development, said Mr Lee.

The Prime Minister was speaking at the third session of the two-day summit in India’s capital. India holds the G20 rotating presidency this year and is seeking to promote inclusive growth and sustainable development under the theme of “One Earth, One Family, One Future”.

Singapore is not a G20 member but has been regularly invited to take part in past summits and related meetings, usually as the convenor of the Global Governance Group. Mr Lee is attending the G20 summit this weekend at the invitation of his Indian counterpart Narendra Modi.

Speaking to global leaders at the session on Sunday, Mr Lee said that while multilateralism was “under pressure” and weakened, the recent conclusion of a high seas treaty under the United Nations Convention on the Law of the Sea provides “reason for cautious optimism”.

The historic treaty, adopted in March, would allow the establishment of marine protected areas and allow other conservation efforts on the high seas – ocean areas that exist outside national borders and have previously never had a legal mechanism to cover them.

"While weakened, multilateralism is yet alive. With leadership and will, we can address today’s challenges," said Mr Lee.

"One priority is to refresh the mandates and rules of existing multilateral institutions. These have been the foundation for growth and development over the last seven decades."

There is a need to sustain the rules-based multilateral trading system as embodied by the WTO.

Mr Lee noted that this “remains the best guarantor of common growth, as well as effective and resilient supply chains”, but its rules will need to keep pace with digital transformation and remain relevant for the modern economy, as well as bolster global food and energy security.

“We therefore urge the G20 to provide a strong impetus to advance negotiations on WTO reform, in particular, to restore a fully-functioning dispute settlement system as soon as possible.”

Another is to reform the international financial architecture to support sustainable development and protect the global commons. The latter refers to resource domains or areas that lie outside of the political reach of any one nation-state, such as the high seas and outer space.

Mr Lee said Singapore “strongly” supports efforts put forth by India, as the host of G20 this year, to study reforms of the multilateral development banks. These banks, such as the World Bank, are supranational institutions set up by multiple states to provide assistance to developing countries.

“The urgency and scale of the financing needs are tremendous,” he added, noting that better and more efficient use of the balance sheets of these banks should be encouraged as a start.

New and innovative ways to scale up and mobilise development funding from the private sector will also be needed, to help complement and amplify the impact of public funds.

“We will need all hands on deck,” said Mr Lee.

“The G20’s leadership in reinvigorating multilateralism is urgently needed to respond to the development challenges. Singapore will do our best to contribute our part, both individually and collectively, as we have always done.”