Remarks by the President of the General Assembly,
Mr. Dennis Francis,
at the Opening Segment of the ECOSOC Forum on Financing for Development
22 April 2024
[As Delivered]
Your Excellency, Paula Narvaez, President of the Economic and Social Council,
Mr. Secretary-General of the United Nations, Antonio Guterres,
Excellencies, Distinguished Delegates,
I appreciate your kind invitation, Madame President, to participate in this opening segment of ECOSOC Financing for Development Forum, held under the theme of “Embarking on the path toward the Fourth International Conference on Financing for Development, FfD4”.
This Forum and its theme is very timely, as we face a worsening development crisis – and time to overcome it is of the essence.
Financing challenges are at the very heart of this crisis – poised not only to imperil our 2030 aspirations, but the promise of the Addis Ababa Action Agenda on which they stand.
As we know too well, more than half of the SDG targets have seen weak or insufficient progress.
In fact, nearly a third are stalled or in reversal.
As the estimates make clear, adequate progress across the SDGs will require trillions in financing annually.
Development finance is more needed than ever – particularly for countries in the Global South.
This Forum, therefore, offers the opportunity to connect the dots and fill the gaps.
Excellencies,
We must start with a relentless focus on the debt crisis.
Global public debt reached a staggering $313 trillion in 2023.
Over the last decade, public debt has increased more rapidly in developing than in developed nations – with external debt stocks reaching an alarming $11.4 trillion.
Worse, developing countries are paying twice as much in interest on their total sovereign debt stocks than developed nations – hobbling them further as they try to ascend the development ladder.
Due to these constraints, more than 100 countries have been forced to make the unfortunate choice between servicing their debt – investing in their development, in other words, in their people.
All the while, nearly half of humanity – or 3.3 billion people – live in countries that spend more on interest payments than on education or health.
How do we expect countries to thrive under these conditions?
No nation – I repeat, no nation – should be forced to gamble with their future.
It is precisely for this reason that I organized a high-level thematic debate on debt sustainability and equality for all, during the General Assembly’s first-ever Sustainability Week which concluded last Friday.
As participants made clear: countries must be enabled to channel their resources towards uplifting their communities and building resilience – rather than servicing excessive debt.
Excellencies,
Thanks to the recent Financing for Sustainable Development Report released by the Inter-Agency Task Force on Financing for Sustainable Development, we can easily identify the trends.
First, we know that financing gaps are large and growing – with an additional $4 trillion of investment needed each year to help developing countries emerge from this vicious cycle; 50 per cent higher than pre-pandemic estimates.
Second, we know the global economic environment is becoming more challenging, amid slack economic growth, tighter financial conditions and fewer investments being made.
Inequalities – both within and between countries – meanwhile remain high, with particularly adverse effects on women and children.
Third, the international financial architecture – established in 1945 – is only exacerbating these vulnerabilities, constraining access to critically needed development finance and pushing developing countries to borrow from even more expensive sources.
Without urgent and necessary reform to the system and the unfair rules that hamper equal access and benefit, developing countries will forever remain trapped in debt and in under-development; mired in poverty, hunger and misery.
We need development that is resilient from shocks – from climate change and biodiversity loss, to conflict and fragility – ensuring that countries and people, together, can bounce back from adversity, whatever form it takes.
While I also look forward to the outcomes of the Spring Meetings of the World Bank and International Monetary Fund (IMF) held last week, I believe this Forum is the perfect opportunity to build more momentum to achieve our goals.
I anticipate that the outcome of this forum will not only build a firm foundation for the Fourth Financing for Development Conference in 2025, but will also provide critical inputs for the Summit of the Future in September – as the last big chances to course correct by the 2030 deadline.
As the Inter-Agency Task Force report makes clear – there are several actions we must take to bring the SDGs back on track.
First, we must close the financing gaps for SDGs, including climate investments at scale and with urgency.
Upholding the promise of the Addis Ababa Action Agenda and implementing the SDG Stimulus plan means we must work smarter, faster and fairer to help developing countries access both public and private sector investment.
Second, we must overhaul the global financial architecture to make it work better for all. The consensus is that the Bretton Woods system – as presently designed – can no longer effect the change for which it was intended over 78 years ago.
International financial institutions must be able to support the mobilization of stable, long-term financing at scale – and in turn, help developing countries achieve debt sustainability and ultimately accelerate the implementation of the SDGs.
And multilateral development banks must be empowered and supported to do this.
Third, we must rebuild trust – not only in our institutions, but also in local and national Governments.
By pursuing and building political support for necessary reforms, we stand a much better chance of rebuilding the social contract – among peoples and across societies – that is critical to our success.
Finally, we must innovate, formulate and finance new development pathways – especially through the use of blended concessional finance, as one of the best ways we can increase finance, mobilize private capital and fast track progress across the SDGs.
The SDG Investment Fair later this week offers an excellent opportunity for connecting Governments, investors and international financial institutions.
Excellencies,
Distinguished Delegates,
In closing, I must emphasize that it is up to us to make the most of the findings in the Inter-Agency Task Force report – to effectively address the regressive sequence of events.
To use a diverse mix of policies and tools to align financing flows and policies with the global economic, social and environmental priorities we set out nearly 10 years ago.
Financing for development is absolutely essential – if we are to achieve the SDGs and thus realize a safer, more equitable future.
It is high time to honour our commitments to ensure that no country and person is left behind.
I thank you.
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