Guterres Calls for Reform of the UN Security Council

The UN Secretary-General António Guterres has called for reforms of the UN Security Council and the Bretton Woods institutions. He made this statement to reporters during the G7 summit.

According to him, "the Bretton Woods system and the Security Council reflect the balance of power of states in 1945."

“The global financial architecture is outdated, dysfunctional, and unjust,” Guterres said. The head of the global organization noted that, in light of the economic shocks resulting from the COVID-19 pandemic and the conflict in Ukraine, it has failed to perform its core function of the “global security network.”

“It is time to reform both the Security Council and the Bretton Woods institutions. Essentially, it is a redistribution of power that corresponds to the realities of today’s world,” Guterres stated.

The third global monetary system was outlined by the Bretton Woods agreement in 1944. The pound sterling and the dollar became reserve currencies. However, it was the dollar that became the only currency partially convertible to gold, and, as a result, the main means of international payments. This system failed just 23 years later, as its collapse began with the slowdown of economic growth in leading countries and accelerated with several economic crises. Amid this backdrop, the US faced enormous deficits in its balance of payments and printed unlimited dollars to cover them, undermining the reliability of the currency.