Embracing Political Leadership on Global Challenges
As I stand before you today, I am acutely aware of the expertise present on this panel, and I appreciate the opportunity to share my thoughts before we hear from the true specialists in the field. My aim is to articulate the political leadership that the UK can and should provide on pressing global issues, particularly as we approach our G20 presidency in the coming year. I believe that such leadership is both essential and capable of effecting meaningful change.
To begin with, I hold the conviction that the UK’s foreign policy must directly address the intertwined challenges of debt, development, and climate change, grounded in both our values and our national interests. It is crucial to illustrate how these elements are not only moral imperatives but also vital to our own security and prosperity.
Secondly, while I draw inspiration from the history of UK leadership, I acknowledge that the landscape of 2026 presents challenges that differ significantly from those we faced two decades ago. We must adapt our strategies to meet the evolving demands of the global context.
Lastly, I intend to outline actionable steps the UK can take to advance these issues. However, before delving into these plans, it is essential to make a compelling case for why we must act now.
Recognising the Urgency of Climate and Development Issues
During my inaugural week as Foreign Secretary, I accepted the role of Governor to the World Bank, a position I believe marks a significant milestone as I may be the first British Foreign Secretary to attend the annual meetings in this capacity. My decision to take on this role stems from a deep-seated belief in the importance of climate, development, and debt issues. After nearly twenty years in climate advocacy, I am acutely aware that those nations least responsible for the climate crisis are experiencing its most severe consequences.
Two decades ago, discussions around climate change often revolved around hypothetical future scenarios. Today, however, we face a stark reality, particularly for small island states and numerous developing countries where climate change poses an existential threat. For many, the ongoing climate crisis compounds their struggles with unsustainable debt levels and urgent poverty alleviation needs.
Thus, the case for action is not solely rooted in ethics; it is also a matter of national interest. In our interconnected world, the opportunities and challenges we encounter are collective. Ensuring prosperity and growth globally not only benefits developing nations but also fosters economic gains for the UK. Conversely, we must confront the challenges posed by climate change, food security, energy security, and migration, as they will ultimately impact Britain if left unaddressed.
Ignoring the root causes of conflict in our foreign policy compromises our security. This is why I am here today, determined that the UK should take a leading role in addressing these urgent matters.
Learning from Past Leadership and Current Realities
Reflecting on previous UK leadership, I recall my time as an advisor in the Treasury during the 2000s. Collaborating with figures like Gordon Brown and Shriti Vadera, we worked on Development and Debt in preparation for the Gleneagles summit in 2005, which marked a significant intervention in global debt relief. The actions taken then continue to resonate today, serving as a reminder of the potential for impactful leadership.
However, the world has shifted dramatically since those times, and while we can draw on past successes, we must recognise the new challenges we face. Today’s discussions cannot merely replicate previous strategies; we must adapt and aspire to meet the heightened ambition of our predecessors.
Firstly, it is clear that our approach must be rooted in partnerships of equals, moving away from a narrative of wealthier nations simply providing assistance to poorer countries. We must also embrace the opportunities that emerging economies present for growth and innovation. This is not merely a narrative of deficits but one of potential and shared progress.
Secondly, we must acknowledge the increased difficulties that our world now faces. Current conflicts have surged to levels unparalleled since the Second World War, compounded by the repercussions of geopolitical tensions, rising food and fuel prices, and the ongoing impacts of climate change. The recent El Niño is poised to exacerbate these challenges, particularly for developing nations.
Proposing Solutions for Debt and Investment
The debt crisis has evolved, but its consequences have become even more severe than two decades ago. Debt servicing costs in sub-Saharan Africa have reached a 25-year high, with countries spending over three and a half times more on debt servicing than on education. This situation has been further complicated by rising interest rates in wealthier nations, which disproportionately affect the Global South.
Although many countries are managing to meet their debt obligations, they are effectively defaulting on their future prospects, sacrificing the potential of upcoming generations. Therefore, we urgently need a new deal on debt—one that allows for longer repayment periods and better refinancing options to create the necessary fiscal space for developing nations.
While the role of the private sector is vital, we cannot overlook the importance of ensuring that multilateral development banks (MDBs) and debtor nations fulfil their responsibilities. Some nations require deeper debt relief, and we must expedite the debt restructuring process through the G20’s Common Framework, working to improve the long-term architecture of debt management to avoid future crises.
Furthermore, it is essential that MDBs fully utilise their existing capacity to provide additional funding. Recent reports suggest that leveraging their balance sheets could unlock billions in fiscal space, significantly aiding those in need.
Addressing Climate Resilience and Fragility
As we pursue solutions for debt and investment, we must also confront the reality that gains can be swiftly undone by climate-related disasters. The increasing frequency and severity of extreme weather events—be it heatwaves, floods, or wildfires—underscore the need for a robust approach to resilience. This is a pressing concern in 2026 and cannot be overlooked.
While we continue to strive for emissions reduction, the need for adaptation and resilience must also be prioritised. Many impacts from climate change are already unavoidable, necessitating a shift in our financing strategies towards proactive preparedness rather than reactive disaster response.
Central to this approach is the requirement for timely, pre-arranged financial support. Currently, a mere 2% of crisis financing is set up in advance, despite the predictability of 35% of potential shocks. Rapid access to funding can save lives and mitigate damage following disasters, as demonstrated by previous instances where pre-arranged finance facilitated quick recoveries.
Finally, I must address the dire situation faced by fragile states. This decade risks being the first in over a generation without meaningful progress in reducing extreme poverty, a plight impacting over 800 million individuals. The regression in progress is closely tied to conflict and instability, with the repercussions of such strife crossing borders and affecting global stability.
Collaborating for a Better Future
In conclusion, the UK is poised to lead in addressing these pressing issues during our G20 presidency. Our focus will encompass debt restructuring, mobilising private sector investment, enhancing resilience, and addressing the challenges faced by fragile states. However, I emphasise that our efforts require collaboration with all stakeholders, including those in the Global South and civil society organisations.
It is crucial to recognise that politics is not solely the domain of politicians; it encompasses all members of society engaged in advocacy, campaigning, and policy-making. As we navigate the challenges ahead, let us channel the spirit of resilience and ambition demonstrated by those who came before us. The post-World War II generation rebuilt a fractured world, and we too must rise to the occasion.
With the spirit of cooperation, solidarity, and a commitment to justice, I am confident that together we can forge a better future. The UK Government stands ready to play its part in this collective endeavour. Thank you for your attention.