Foreign Secretary Ed Miliband has called for a fundamental reset of the international financial system at the World Bank and International Monetary Fund annual meetings in Bangkok.
He set out four priorities: easing unsustainable debt burdens, increasing private investment, strengthening preparedness for shocks and improving support for countries affected by conflict and instability.
The proposals include longer repayment terms and better rates where appropriate, faster debt restructuring and greater use of mechanisms that allow payments to pause after major disasters.
The Government says only 2 per cent of crisis finance is currently arranged in advance even though 35 per cent of crises are predictable. A £25 million UK investment this year is reported to have mobilised more than £150 million for climate insurance in low-income countries.
Miliband also pointed to UK support that helped the International Finance Corporation mobilise more than $1 billion of private capital through the London Stock Exchange for emerging markets.
The Foreign Secretary said the programme would shape Britain's work with international financial institutions and give developing countries a stronger voice. He linked the case for reform to UK interests in stable trade, supply chains and security.
