United Nations Secretary-General Antonio Guterres has underscored the continued importance of the Group of 77 and China, calling it an indispensable pillar of multilateralism at a time when international cooperation is under growing strain from multiple global crises.

Speaking on Wednesday at a ceremony marking the annual change of presidency of the G77, Guterres said the world is entering the year facing severe challenges, including ongoing conflicts, widening inequality, rising debt burdens, and an erosion of trust in global institutions.

“We begin this year amid raging conflicts, widening inequalities, mounting debt burdens, and an erosion of trust,” Guterres said. “That is why we need a renewed commitment to cooperation — in a truly interconnected, multipolar world. And that is why the Group of 77 and China remain indispensable.”

He praised the bloc for repeatedly demonstrating unity and collective strength in advancing the interests of developing nations within the UN system. The G77, founded in 1964 with 77 countries, has grown to include 134 member states and today serves as the largest coalition of developing countries at the United Nations. India is a founding member of the group.

At the ceremony, Iraq formally handed over the presidency of the G77 to Uruguay. Iraq’s Permanent Representative to the UN, Lukman Al-Faily, passed the ceremonial gavel to Uruguay’s Foreign Minister Mario Lubetkin, marking the transition in leadership.

Lubetkin said Uruguay was assuming the presidency at a critical juncture for both the United Nations and the rules-based international order. He emphasized that global instability and mounting geopolitical challenges make collective action more essential than ever.

“We will defend the interests of our group, and we will strengthen its position within the UN system,” Lubetkin said. He added that growing international challenges “require ever more collective cooperation to reach our common goals in the context of an international law that is ever more affected.”

Guterres outlined several priority areas where the G77 must continue to play a leadership role, particularly in advocating for reforms to global governance structures. He called for changes that would give developing countries greater representation and influence in international financial institutions, which he said remain skewed in favor of advanced economies.

Another major concern highlighted by the UN chief was the widening global digital divide, which he said is being intensified by the rapid development of artificial intelligence. Without coordinated global action, he warned, technological advances could deepen inequality rather than reduce it.

“We must ensure the digital age becomes an engine of inclusion — not an accelerator of inequality,” Guterres said. He stressed the need to close gaps in computing power, access to data, research capacity, technical skills, and safety standards.

Pointing to stark disparities, Guterres noted that more than 80 countries currently lack the basic capacity to design, build, or deploy artificial intelligence systems, placing them at risk of being left behind in the emerging digital economy.

The G77 has increasingly positioned itself as the collective voice of the Global South, advocating South-South cooperation and coordinated responses to development challenges. As global tensions rise and multilateralism faces mounting pressure, Guterres said the unity and leadership of the G77 will remain central to shaping a more inclusive and equitable international order.