As global inequality continues to deepen, Brazilian President Luiz Inácio Lula da Silva emphasizes the urgent need to connect democracy with material dignity. During a recent global meeting, he warned that without tangible improvements in citizens’ lives, democracy will be increasingly vulnerable to populism and authoritarianism.
Rising Awareness of Inequities
The world is witnessing a heightened awareness of the entrenched injustices within the international system. Many believe that unless those burdened by the decisions and actions of others can influence the multilateral framework, the system will be deemed unjust and illegitimate. The recent discourse reflects a growing call for reforms to ensure that the voices of vulnerable populations are heard and their needs addressed.
Progress Towards Global Restructuring
Encouragingly, there is a surge in momentum advocating for a reevaluation of the global order. In May, United Nations Secretary-General António Guterres launched a report titled “Counting What Matters,” which criticizes the long-standing deficiencies in measuring progress. While acknowledging that GDP remains a crucial metric, Guterres highlighted the necessity for a more comprehensive and humane accounting system that genuinely reflects our goals rather than obscuring the challenges we face.
Transforming Multilateralism
However, some observers express concerns that efforts to reshape multilateralism to benefit the global majority might simply perpetuate existing structures under new, symbolic leaders. To prevent this, the international community must focus on building effective mechanisms that grant greater fiscal autonomy to nations. A binding UN framework for sovereign debt restructuring could transform the rule-making and decision-making processes, ensuring that debtor countries have a seat at the negotiation table. Currently, nations like Malawi allocate a staggering 43% of their revenues to interest payments, a situation that could change drastically if they participated in debt negotiations.
Addressing Taxation and Wealth Concentration
On the taxation front, the UN’s framework for international tax cooperation presents a critical opportunity to establish comprehensive global tax rules. Although the OECD and G20 have made headway in setting a global minimum corporate tax rate, American multinationals have largely been exempt from strict regulations. An ambitious treaty could introduce a minimum effective tax rate that tackles profit shifting, ensuring all countries automatically exchange financial information.
Moreover, there is a pressing need for a coordinated wealth tax, akin to what Brazil proposed while chairing the G20 in 2024. A 2% annual tax on the world’s billionaires could generate hundreds of billions of dollars for public investment, underscoring that the necessary tools are already available; the challenge remains determining who will wield them.
Establishing Accountability
Additionally, the international community must create a permanent mechanism to verify the legitimacy of sovereign claims before populations are compelled to repay them. Instances of vast sums being embezzled from funds, such as the 1MDB scandal in Malaysia, often occur with scant accountability for the institutions involved, resulting in significant losses for citizens. A UN-led process to identify and cancel debts contracted through fraud or in defiance of the public interest could return the burden of risk to reckless lenders rather than the very people harmed by these financial dealings.
Implementing these changes cannot come from the top down. Governments advocating for wealth taxation globally frequently implement austerity measures or neglect to tax the wealthy within their own borders, as seen in countries like India, Brazil, and France. The new international system must be built on bridging these gaps, necessitating principled governance and citizens ready to shape these commitments and hold their leaders accountable.
Local movements also compel governments to act differently on the global stage, with promises made at international forums often remaining unfulfilled unless underpinned by grassroots mandates. Citizens must organize concurrently in their capitals and global conferences, as the responsive system they seek cannot be achieved on either front alone.
The cleaner who spends half her salary on commuting, the farmer unable to afford fertilizer, and the care worker whose contributions are undervalued in national accounts are realizing their disparate struggles are manifestations of a structural malfunction. The global system now demands the majority to shoulder the costs of a set of unwritten rules. Reforming this system will require transferring the pen of authority into their hands.
The choice isn’t merely between the old system and chaos; it is between a new order centered on the global majority and one that merely replaces a slightly different cast of symbolic figures. Civil movements are not peripheral to this more equitable system; they are its driving force. These coalitions understand the true dynamics of the global economy. The challenge now lies in ensuring that those shaping the new international institutions grasp these dynamics as well.
