Speech by Minister of Finance Sigrid Kaag at the opening ceremony of MUNISH, The Hague

Speech | 04-11-2022

Esteemed delegates,

What a pleasure it is to be here surrounded by young people who are passionate about international cooperation.
Clearly you are interested in complex issues, in working with others, and in seeking unity amid division.

This is the start of three extraordinary days.
Three days in which you will discuss some very thorny problems.
Problems for which we in the ‘real’ world don’t have easy solutions.
Problems on which countries may have very differing views or perspectives.
At the same time, it is precisely those problems that require global partnerships.

International cooperation is a process of small steps forward followed now and then by one step back.
A process of compromise, nuance and diplomacy.
It may sound a bit dull, conjuring images of endless meetings and stuffy bureaucracy.
But the potential rewards are far from dull, and can directly impact people’s lives around the world.

What is more, international diplomacy can take you to amazing places and lead to fascinating encounters.
It deepens and broadens your perspective.

I believe that all our work should be based on one basic principle: connection.
And the same goes for all of you in the coming days.
The simple knowledge that, despite our differing interests, our underlying desire is the same: we all want a good life for ourselves and our loved ones.
And for decades now, the United Nations has played a key role as we strive to achieve peace, justice and prosperity for people around the world.
It is an ambitious aim, but that does not mean we should stop trying.

You have a pretty packed programme over the next few days. And that makes sense: there is a lot going on in the world.
So the theme of this year’s conference – ‘Multilateral Cooperation: The Path Towards Peace and Justice’ – is more relevant than ever.

A war with no end in sight.
A serious nuclear threat that we hoped was a thing of the past. Soaring prices worldwide and food scarcity, which are hitting the poorest people especially hard.
An unstable energy market.
Global warming and the resulting climate disasters that are devastating millions of lives around the world.

Such a long list of suffering might cause some to despair.
But in fact it should spur us to action.
I’m sure you all feel the same way – otherwise you wouldn’t be here.

It was this sense of a need for action that motivated me during all the years I worked for the United Nations.
Because the international community can and must take responsibility.
For fighting poverty and hunger.
For stopping climate change.
And it must strive for peace and justice.
For human rights and democracy.

‘We need a coalition of the world’ as Secretary-General Guterres put it at the General Assembly in September.
And although it is not perfect, the United Nations represents our most serious attempt to build one.

Here countries work together in the broadest sense.
It may not be easy, but we achieve a lot.
Take the Sustainable Development Goals, which we have been working on together since 2015.
Goals to stop hunger and poverty.
To provide good healthcare and education for all.
And strive for gender equality.
To name but a few.

It is encouraging that we managed to formulate these global ambitions, and we have taken steps, big and small, to achieve them.
But some major threats are putting this agenda – and indeed humanity itself – in danger, as the UN itself has pointed out.

Geopolitical turmoil and climate change are adversely affecting the lives of people all over the globe.

When I mention geopolitical turmoil, of course I am talking about the horrific war in Ukraine.
The Netherlands condemns in the strongest possible terms Russia's military aggression against Ukraine.
Russia’s unprovoked and unjustified military action is a gross violation of international law which is undermining European and global security and stability.

Putin’s aggression has served only to bring greater unity.
Both NATO and the European Union are united in condemnation of his deeds and in their resolve to stop him.
The United Nations should also display this unity and stand firm for the principles we laid down in the UN Charter.
The principles on which our cooperation is built.

The UN Security Council is an important instrument in achieving peace and security, and we stand by President Biden’s recent calls for reform to make it more effective and better suited to today’s challenges.

The most acute challenges facing the global economy are directly related to the war in Ukraine, and they affect people across the globe.

First and foremost, the war has had a massive humanitarian and financial impact on Ukraine, and our top priority is to support the Ukrainian people.

Secondly, we face the risk of a food crisis in the world’s most vulnerable countries.
345 million people are currently suffering from acute food insecurity.
Most of them are located in Sub-Saharan Africa.
We need to provide adequate support to countries at urgent risk of food shortages.

Thirdly, in many countries, people are struggling to make ends meet due to high energy prices.
Fiscal policy should protect vulnerable households by offering temporary, targeted support to counter the cost-of-living crisis.

Here, we face competing aims as we tailor support to those who need it:
on the one hand, we need to safeguard sensible fiscal and budgetary policy at a time of rising interest rates;
and on the other we need to ensure our climate ambitions remain intact by preserving incentives to reduce energy consumption.

The latter point is an important one.
We need to take care that the many problems we face today – however major and urgent – do not cloud our focus on the future.

In fact, climate change is no longer a ‘future’ problem.
This summer we witnessed devastating floods in Pakistan, wildfires in Alaska and countless record-breaking heatwaves across the globe.

So we don’t have the luxury of simply pressing the pause button. If we don’t act now, even more people worldwide will slide into poverty, be forced to flee their homes, or fall victim to climate disasters.
Generally speaking, your generation understands the urgency far better than mine.
The world can count itself lucky that you will be the leaders of the future.
But make your voice heard today.

The latest UN climate report was more alarming than ever. The Emissions Gap Report 2022 found that the international community is falling far short of the Paris goals, with no credible pathway to 1.5 degrees in place. 
Only an urgent, system-wide transformation can avoid climate disaster.  

This Sunday, COP27 will start in Sharm El-Sheikh – the first climate conference to be held in Africa – a continent which is suffering greatly from the impact of climate change.
And although these words may seem jaded because we have used them so often: now is the time to prove that we are serious – or we will put in peril the future of humanity.

We need to work both on mitigation and adaptation.
And developed countries have an extra responsibility to help developing countries adapt to new circumstances.

Most people would not associate the Ministry of Finance with climate action, but they would be wrong.
Everything depends on financial flows, after all.
Do we finance sectors that pollute the environment?
Or do we support sustainable initiatives?
Finance ministers have a range of policy instruments for climate action: taxation, economic modelling, subsidies and regulation.

We, the shareholders of international financial institutions like the IMF and the World Bank, have decided to continually increase our investment in the global energy transition, in combating climate change, and in dealing with the dramatic impact it is already having.

And I’m pleased to say that my counterparts and I now have forum in which we can inspire, encourage and learn from each other: the Coalition of Finance Ministers for Climate Action, which I will be co-chairing with Indonesia from next April.

Action is needed on all fronts: at international level, within the EU, in the national arena and by the financial sector, the business community and consumers.
And here too, cooperation is key.

Esteemed delegates,

‘It is when we all play safe that we create a world of utmost insecurity’.
These words were written by former UN Secretary-General Dag Hammarskjöld, in his book Markings.

There will always be a need for people willing to stand up and take risks.
People with the courage to make their voice heard.
And sadly that requires more courage than ever today, in this time of polarisation and hate speech, which often plays out on social media but has direct consequences in the real world.

I hope you will make your voice heard, not only during this Model United Nations conference, but going forward as well.
I hope you will work together, in the spirit of fostering connections and respecting differences, to forge a better, safer and greener world.
We need it now more than ever.

But for now, let me wish you three fantastic, instructive and inspirational days.
I hope your encounters with fellow students from around the world will lead not only to new perspectives but also to new friendships.
And above all, don’t forget to have fun.
That can lead to wonderful things!

Thank you.