Brazil's Lula slams neoliberal globalization, calls for taxes on super rich at G20

Lula addressed delegates from the world's most powerful economies, slamming neoliberalism and the UN Security Council, saying its inaction poses a threat to world peace.

In his opening remarks during the second session of the summit, he discussed the G20’s success in managing the 2008 financial crisis by agreeing on $4 trillion in stimulus measures which prevented the global economy from collapsing but also created unequal power dynamics that left most of the world in a dire state.

"At that moment, the choice was made to save banks rather than help people. The decision was made to assist the private sector instead of strengthening the state," he said.

"The world began to grow again, but the wealth generated did not reach the most needy. It is no surprise that inequality fosters hatred, extremism and violence, or that democracy is under threat. Neoliberal globalization has failed."

Citing Africa's current external debt, which he said exceeds the resources the continent needs to bankroll key infrastructure as well as health care and education, the Brazilian leader called for revising the financial policies that severely affect underdeveloped countries.

"A 2% tax on the wealth of ultra-rich individuals could generate resources on the order of $250 billion per year to be invested in addressing the social and environmental challenges of our time," said Lula.

He also criticized the UN Security Council, which he considered a "hostage" of its five permanent members -- the US, Russia, China, France and the UK -- thanks to the overwhelming veto power these countries hold.

"This year, global governance reform was definitively added to the G20’s agenda. For the first time, the group went to the UN, and with the support of 40 other countries approved a call to action. But this call is only a wake-up call. The omission of the Security Council has itself been a threat to international peace and security," said Lula.