Trevor Manuel appointed to UN body as global debt crisis looms

The appointment of former minister of finance Trevor Manuel to serve in a group of prominent experts announced by the UN to find policy solutions to the debt crisis in the world, has been hailed as world recognition of the country’s talent.

UN secretary-general António Guterres named Manuel as part of the group last week.

He is not the first South African to be posted to UN structures to contribute in making a difference in various world situations.

Former deputy president Phumzile Mlambo-Ngcuka served under secretary-general and executive director of UN Women from 2013 to 2021 and judge Navi Pillay is the UN high commissioner for human rights since 2008.

Several others served in different agencies and fields including diplomacy, military peacekeeping and health care in the UN.

UN’s attempt to solve debt crisis

According to a UN statement on Friday, the group of prominent experts will promote actionable policy solutions and galvanise political and public support required to resolve the debt crisis.

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Its work will inform the Fourth International Conference on Financing for Development, an intergovernmental process facilitated by the UN from 30 June to 3 July, 2025, in Sevilla, Spain.

“The developing world is currently facing an unprecedented debt crisis, with dozens of countries struggling under the weight of debt service that threatens economic stability, social progress and sustainable development. And yet, to date, the global response has fallen short,” the UN said.

Besides Manuel, members of the group are Mahmoud Mohieldin, the UN, who will chair it with Paolo Gentiloni, former European commissioner for economy as co-chair and Yan Wang, senior academic researcher at the Boston University Global Development Policy Centre.

Neglecting local experts

Political analyst and international relations expert, Dr Jan Venter from North-West University, has an abundance of knowledge on how to govern correctly.

“I think it is recognised on an international level that we possess specific knowledge on South Africa, on Africa and specific knowledge on Third World economies and rehabilitation of Third World economies,” Venter said.

“For me it’s interesting that the government in South Africa is not harnessing that expertise. So, I am left wondering what other loyalties are driving the governing classes in SA to sideline experts. I think people like Trevor Manuel can make a tremendous contribution,” he added.

Manuel served in the Cabinet from 1994 to 2014.

IMF on global debt

Recently the International Monetary Fund (IMF) reported that global public debt was very high and expected to exceed $100 trillion (about R1.8 quadrillion), or about 93% of global gross domestic product(GDP) by the end of this year and to approach 100% of GDP by 2030.

This is 10 percentage points of GDP above 2019, that is, before the pandemic.

The IMF’s October 2024 Fiscal Monitor, indicated that while the picture was not homogeneous, public debt was expected to stabilise or decline for two thirds of countries.

However, it projected that future debt levels could be even higher than projected and much larger fiscal adjustments than currently projected were required to stabilise or reduce it with a high probability.

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The fiscal outlook of many countries might be worse than expected for three reasons; large spending pressures, optimism bias of debt projections and sizable unidentified debt.

The report cautioned countries to confront debt risks now with carefully designed fiscal policies that protect growth and vulnerable households, while taking advantage of the monetary policy easing cycle.

Venter affirmed the huge debt crisis that engulfed the entire globe and how first world countries were also badly hit by debt including US, Germany and France.

He said while South Africa had a prudent economic policy it was not assertive enough to address the country’s economic situation in the next few years.

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