We won’t achieve sustainable development unless countries, institutions and peoples work together

By Li Junhua, United Nations Under-Secretary-General for Economic and Social Affairs, and Secretary-General of the Fourth International Conference on Financing for Development

Political leaders will gather at the Fourth International Conference on Financing for Development (FFD4) in Sevilla, Spain, on 30 June – 3 July, to put in place a renewed global financing framework for sustainable development.

They do so at a moment of great uncertainty, faced with a challenging global economy, rising trade barriers, simmering geo-political tensions – and a sustainable development crisis. Multilateralism itself is increasingly being questioned. 

Unless urgent action is taken, the world will miss its promised deadline of 2030 for delivering on the internationally agreed Sustainable Development Goals (SDGs). That is why it is so critical to make Sevilla a success; to catalyze a global investment push for a sustainable future. 

The SDGs are not just abstract global targets; they represent the lives and livelihoods of people all over the planet. If our climate and poverty targets are not met, people suffer.

Between 2000 and 2023, 2.6 per cent of the global population lost their lives, were injured, or became homeless due to climate disasters. And, at current rates of progress, some 600 million people will continue to live in extreme poverty in 2030 and beyond.

Sadly, we have fallen well behind where we need to be. Developing economies are not growing at anywhere near the rates they did in the first decade of the millennium, when the world made rapid progress on poverty eradication. Their growth rates are projected to be around 4 per cent through 2025, well below average growth rates of over 6 per cent in the early 2000s. 

More than $4 trillion dollars in additional investment is needed in developing countries every year to achieve the SDGs. Yet, amid tightening financing constraints, investment has declined and the SDG financing gap is widening rather than closing. 

Sevilla conference is an opportunity  

Facing the urgent need to rescue the SDGs and reinvigorate multilateral action, governments will come together at FFD4 in Sevilla. They will adopt a package of reforms to address the SDG financing gap and reform the international financial architecture to make it fit for purpose for today’s challenges. The FFD4 outcome document currently being negotiated proposes, among other things: 

• An indicative target floor for tax revenue at 15 per cent of GDP to increase domestic public resources, and a doubling of support to help countries raise more revenue.
• A development cooperation architecture that puts developing countries in the lead and coordinates donors around countries’ national strategies and plans.
• Tripling the lending by multilateral development banks and improving operations of the entire system of public development banks.
• Scaling up private financing by incentivizing investment in critical areas such as infrastructure, for example through guarantees and public-private funding opportunities.
• Enhancing debt transparency through a single global debt registry; scaling up support to help countries reduce their interest burdens and borrowing cost; and an improved debt restructuring architecture that meets the need of developing countries.
• Strengthening the global financial safety net.
• More voice and representation for developing countries in global economic decision-making.

Multilateralism is the answer 

Global problems require global solutions. But conflicts, falling aid budgets, and rising trade barriers are creating strains across economic and financial policy areas, hindering international cooperation among countries. 

The lack of trust among countries, governments and people also stems from promises not met. Countries, especially richer ones, have not delivered on many pledges in the last two decades - on global governance reform; on providing aid to developing countries; on reducing emissions and on paying for climate damage.

Nationally, many governments are rolling back their pledges on domestic reforms to tackle corruption and inequality, including gender inequality.

The Sevilla conference can bring the SDGs back on track through commitments to scale up affordable financing and investment and reform the international financial architecture. Success at FFD4 would rebuild faith in multilateralism and international cooperation. 

Global leaders recognize that time is running out on the SDGs. FFD4 is a once-in-a-decade opportunity to strengthen multilateralism and deliver an international financial system that works for people and planet.