Anjali Sharma
GG News Bureau
UNITED NATIONS, 23rd April. UN chief Antonio Guterres on Monday called for a “surge in investment” to give developing countries a chance to build better lives for their people.
According to UN estimates, the world is facing an annual financing gap of about $4 trillion to achieve sustainable development, left countries with hardly any resources to invest in better education, healthcare, renewable energy or social protection.
Mr. Guterres said “The Sustainable Development Goals are hanging by a thread, and with them, the hopes and dreams of billions of people around the world,” as he addressed the UN Economic and Social Council’s2024 Forum on Financing for Development.
He urged countries to push for the SDG Stimulus of $500 billion annually in affordable long-term finance for developing countries, which he proposed in February 2023.
SG recalled that the Stimulus was welcomed by world leaders at the SDG Summit last year.
He stressed “now it’s time to move from words to action and deliver affordable, long-term financing at scale.”
Guterres called for greater representation of developing countries in global financial systems.
“The countries who need these systems and institutions most were not present at their creation – a lack of representation that continues to this day,” he said.
He underlined the urgent need change.
SG emphasized the Summit of the Future, which will be convened on 22-23 September in New York and the 2025 Financing for Development Conference in Spain as “key opportunities” to gather world leaders to reform the global financial architecture.
“Let’s make the most of these opportunities. Now is the time for ambition. Now is the time for reform,” Mr. Guterres urged UN Member States.
“Now is the time to shape a global economic and financial system that delivers for people and planet,” he said.
Paula Narváez, the ECOSOC President highlighted the need for the international financial architecture to channel sufficient resources towards the most vulnerable economies in the world.
She stressed the need to confront dated paradigms and to renew cooperation among nations to implement the 2030 Agenda for Sustainable Development and reminded delegates that the task at hand “is not an easy one”.
“We must work together, and we must unite all of our political capital and determination to address these challenges,” she said.
She noted the urgent needs of least developed countries and other low-income countries.
Paula Narváez called for ways to effectively coordinate public and private creditors, and ensuring that commercial creditors fulfil their obligations, as well as “significantly increasing” concessional financing.
President of the General Assembly Dennis Francis called for a “relentless focus” on the debt crisis.
He noted that in 2023, the global public debt reached a $313 trillion, and over the last decade, increasing far more rapidly in developing nations than in developed ones.
“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,” Mr. Francis said.
He noted that over 100 countries have been forced to choose between servicing their debt or invest in development.
“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. No nation I repeat, no nation – should be forced to gamble with their future,” he stressed.
He recalled the General Assembly’s first-ever Sustainability Week, which concluded on 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,” Mr. Francis added.
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