[NEW DELHI] Singapore Prime Minister Lee Hsien Loong on Sunday (Sep 10) urged leaders of the Group of 20 (G20) countries to pursue reforms of multilateral institutions in order to address the world’s development challenges.

While noting that the World Trade Organisation (WTO) remains the best guarantor of common growth and effective and resilient supply chains, PM Lee said its rules need to keep pace with digital transformation and remain relevant for the modern economy.

“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,” he said in his speech at the final session of the G20 summit in New Delhi, titled One Future.

Many disputes among WTO members remain in a state of limbo, as the United States has since 2017 blocked the appointment of new judges to the trade organisation’s appellate body that is responsible for reviewing appeals.

In their consensus declaration on Saturday, leaders of the G20, which comprises 19 major and emerging economies and the European Union, committed to “conducting discussions with a view to having a fully and well-functioning dispute settlement system accessible to all members by 2024”.

PM Lee said that there was also a need to reform the international financial architecture so that it can better respond to the challenges of sustainable development.

GET BT IN YOUR INBOX DAILY

Start and end each day with the latest news stories and analyses delivered straight to your inbox.

Sign UpVIEW ALL

In particular, he said, there was a need to encourage multilateral development banks to make better and more efficient use of their balance sheets to carry out their mandates.

He noted the need for innovative ways to increase and mobilise development funding from the private sector to complement and amplify public funds.

PM Lee stressed at the annual forum that “multilateralism is yet alive”, even as he noted that cooperation among nations to address global issues had weakened.

He cited the conclusion in March of a new agreement under the United Nations (UN) Convention on the Law of the Sea, which ensures the conservation and sustainable use of marine biological diversity of areas beyond national jurisdiction, as a reason for “cautious optimism” regarding multilateralism.

The G20, which includes countries such as the United States, China, Russia and Japan, makes up about 85 per cent of global gross domestic product and two-thirds of the world’s population.

Singapore is not a member of the G20 but is regularly invited to take part in its meetings.

The Republic is the convener of the Global Governance Group, an informal grouping of 30 small and medium-sized members of the UN.

PM Lee is attending the annual forum at the invitation of Prime Minister Narendra Modi on behalf of India, which holds the rotating G20 presidency for 2023.

“The G20’s leadership in reinvigorating multilateralism is urgently needed to respond to the development challenges,” he said. THE STRAITS TIMES