Amid Global Crises, Multilateral Support Critical for Most Vulnerable States, Delegates Underline, as Second Committee Takes Up Macroeconomic Policy
The world is in the midst of multidimensional macroeconomic crises and urgently requires reform of the international financial system to ensure COVID‑19 recovery and sustainable development, United Nations experts and Member States warned today as the Second Committee (Economic and Financial) took up the issue.
Shari Spiegel, Chief of the Policy Analysis and Development Branch in the Financing for Sustainable Development Office of the Department of Economic and Social Affairs, presented three reports, beginning with the Secretary-General's report on the follow-up and implementation of the texts resulting from the International Conferences on Financing for Development (document A/77/223). She noted gross domestic product (GDP) growth in developing economies will decline and global growth will contract, with soaring energy prices driving inequality and presenting a difficult environment for policymakers. Central banks are raising interest rates, with the risk of capital flowing out of developing countries. More than 20 developing countries have foreign bond yields of more than 10 per cent. One in five countries faces fiscal and financing problems, while many are over-indebted.
Presenting the Secretary-General’s report on international financial system and development (document A/77/224), she observed that the current system has not allocated resources properly or dealt with risks and shocks or changed with the world. Since the 2008 financial crisis, the international financial system has been strengthened, but risks persist. Many countries have borrowed at near-zero interest rates, but with rates rising, there are risks of market volatility. Addressing International Monetary Fund (IMF) special drawing rights, she explained that they should be directed to countries most in need.
Taking up the Secretary-General’s report on international coordination and cooperation to combat illicit financial flows (document A/77/304), she cited corruption, tax avoidance and tax evasion. The first asset recovery data survey since 2014 found that 59 States reported recovering nearly $10 billion in proceeds of corruption frozen, blocked or confiscated since 2010. Action is needed in three main areas: better application of existing standards; strengthening international standards to fill gaps and respond to changing risks; and improving national enforcement capabilities. Transparency must be the foundation of these efforts, but without political coordination, all the issues addressed by the report will not find a long-term solution.
The representative of Antigua and Barbuda, speaking on behalf of the Alliance of Small Island States, noted that the negative and slow growth rates facing much of the world are reminiscent of the hardship and struggle that should have become notations in history. Recalling the Secretary-General’s report, which states that the external debt stocks of small island developing States has reached new record levels of $66.1 billion, raising the ratio of debt service costs to export revenues from 37 per cent in 2019 to 41.1 per cent in 2021, he said: “Our fiscal space is no longer limited, it just doesn’t exist.” States such as his have their backs against a wall, he added.
The representative of Nigeria, speaking on behalf of the African Group, warned that her continent is not on track to meet its goal of eradicating poverty in one generation. Pointing out that the volume of African trade remains low, at 3 per cent of global trade, she stressed that expanding and diversifying Africa’s participation in international trade and global value chains will enable it to reduce poverty on a large scale and transform its economy. The continent needs financial support of up to $400 billion between 2021 and 2025, she noted.
The representative of Malawi, speaking on behalf of the Group of Least Developed Countries stressed those States, being the most vulnerable, are the hardest hit by all crises. Despite international commitments to double the least developed countries’ share of global exports by 2020, it remains below 1 per cent, roughly the same level as in 2011. The trade deficit reached $84 billion in 2021 — around 7 per cent of their GDP. Meanwhile, she noted the share of public debt as a share of GDP increased from 45 to 57 per cent between 2015 and 2021, and the public and publicly guaranteed debt service increased by 27 per cent. As a result, the countries on average dedicate 14 per cent of domestic revenue to interest payments compared to the 3.5 per cent that developed countries spend.
The representative of Botswana, speaking on behalf of the Group of Landlocked Developing Countries, stressed that financing for development has become difficult precisely when those States required the opposite. Highlighting the need for enhanced levels of ODA, she added that special attention should be given to alleviating of transport connectivity constraints and natural resource reliance. She called for debt restructuring and suspension of debt reservicing, as a coordinated global effort is imperative to finding lasting solutions.
The representative of Bahamas, speaking on behalf of the Caribbean Community (CARICOM), emphasized that developing countries, and particularly small island developing States, lack the capacity to respond independently to global crises. Multilateral support is necessary and crucial, and it should be targeted with decisive action. He called for a restructured international financial architecture, adding that IMF should redirect the unused portion of its $650 billion allocation of special drawing rights to those places where it is most needed.
Reports were also presented by the Acting Director, Division of International Trade and Commodities, United Nations Conference on Trade and Development (UNCTAD); President of the Trade and Development Board; Head of the Debt and Development Finance Branch in the Division on Globalization and Development Strategies, UNCTAD; Senior Statistician of UNCTAD; and Director of the Investment and Enterprise Division, UNCTAD.
Also speaking were the representatives of Pakistan (on behalf of the “Group of 77” developing countries and China), Indonesia (on behalf of the Association of Southeast Asian Nations), Venezuela (on behalf of the Group of Friends in Defence of the Charter), Colombia (on behalf of Like-Minded Group of Countries Supporters of Middle-Income Countries), Sierra Leone, Egypt, Qatar, Thailand, Ghana, Zimbabwe, Bangladesh, Nigeria, Fiji, El Salvador, Namibia, Burkina Faso, Ethiopia, Peru, China, Venezuela, Saudi Arabia, Morocco, Iraq, Maldives, Cuba, Russian Federation, Myanmar, Cambodia, Malaysia, Costa Rica, Viet Nam, Ecuador, Niger, Zambia, Kenya, Cameroon, Mexico, Norway, Iran and Belarus.
Representatives of the International Anti-Corruption Academy, United Nations Industrial Development Organization (UNIDO) and the International Trade Centre also spoke.
The Committee will meet again at 10 a.m. on Friday, 7 October.
Introduction of Reports
MIHO SHIROTORI, Acting Director, Division of International Trade and Commodities, United Nations Conference on Trade and Development (UNCTAD), delivering the Secretary-General’s report on International trade and development 2022 (document A/77/207), said international trade is vital in mitigating the ongoing cost-of-living crisis concerning food and energy. International trade helps developing countries materialize their natural comparative advantage in renewable energy production, when combined with technology transfer and capacity-building. The current cost-of-living crisis resulted from a fragile and uneven recovery from the COVID-19 crisis. In the second quarter of 2021, international trade rebounded and by the end of that year, global merchandise trade increased by 13 per cent from the pre-pandemic period.
However, poorer countries and those that lacked economic diversification had their trade increase only by 4 per cent or less, she said. Lower export revenues and reduced remittance receipts exacerbated their financial constraint. Then, coming on the heels of the COVID-19 pandemic, the war in Ukraine has inflicted supply shocks to food and fuels, which heightened the risk of food and energy insecurity through massive price rises. High energy prices drive inflationary pressure, for example, increasing the cost of maritime transport, which carries over 80 per cent of the volume of international merchandise trade. The freight rate surge can directly impact global consumer prices, as UNCTAD estimates that a 1 per cent increase in the freight rate can increase global consumer prices by 1.6 per cent in 2023.
International trade helps developing countries become competitive producers and exporters of renewable energy over the long run. The report demonstrates how developing countries are poised to become competitive exporters of renewable energy, she noted, thanks to their comparative advantage of high solar insolation and high-speed wind regimes. Hydrogen also represents an attractive export opportunity to developing countries. She noted that the Twelfth Ministerial Conference of the World Trade Organization (WTO) in June successfully concluded with very useful Ministerial Declarations, such as the one on food security. The Second Committee (Economic and Financial) may consider multilateral or regional trading frameworks that will encourage and facilitate technology transfer and capacity-building in renewable energy production in a commercially sound and sustainable manner.
Turning to the Creative Economy Outlook, as transmitted in a note by the Secretary-General (document A/77/500), Ms. SHIROTORI cited one section dedicated to reporting the implementation of the resolution at the seventy-fourth session, titled “International Year of Creative Economy for Sustainable Development, 2021”, (document A/RES/74/198). The resolution stresses that creative industries help developing countries benefit from new and dynamic growth opportunities in world trade. It also stresses the importance of compiling regular, reliable and comparable data on the contribution of the creative economy to sustainable development through, among others, trade in creative goods and services.
The 2021 International Year of Creative Economy for Sustainable Development successfully raised awareness, facilitated discussions and promoted cooperation and networking to improve the environment for all stakeholders in the creative economy. She noted the responses from 33 countries, of which 22 are members of the “Group of 77” developing countries and China, demonstrated how the creative economy had become a sector of growing social, political and economic importance. The Outlook presents examples of national strategies for the creative economy, such as those from Cambodia, Canada, Nicaragua and the United Arab Emirates. The survey results also demonstrated how each country measures the creative economy differently, with some measuring it in terms of the creative economy’s contribution to the gross domestic product (GDP). Other countries estimate it by the number of employees in so-called creative sectors.
She cited one UNCTAD approach in measuring trade in “creative goods” and “creative services”. The Creative Economy Outlook 2022 presents that the global exports of creative goods increased by 20 per cent between 2010 and 2020, from $419 million in 2010 to $524 million in 2020. But the exports of creative services vastly exceeded those of creative goods: the global exports of creative services (which cover audio visual services, information services, research and development, and cultural, recreational and heritage services, among others) increased from $487 billion in 2010 to $1.1 trillion in 2020. All the trade statistics in creative industries are available on the UNCTAD Stat website at the following URL: https://unctadstat.unctad.org/wds/ReportFolders/reportFolders.aspx?IF_ActivePath=P%2c10&sCS_ ChosenLang=en.
South-South trade in creative goods has almost doubled in the past two decades, she noted, primarily in exports of jewelleries, interior design products, recorded media, fashion and toys. The Outlook 2022 also reveals how new technologies, such as 3D printing, artificial intelligence and virtual reality, fundamentally change some creative industries, she noted.
She affirmed that the pandemic accelerated the shift towards e-commerce and digital platforms and the scope for the transformation of the creative economy. Developing countries must catch up by providing adequate digital infrastructure and a regulatory environment. She stated the Committee may promote efforts to develop a coherent way to measure the creative economy that all countries can apply regardless of their levels of development. It is essential to map and measure the role of creative industries, including their contribution to international trade. More and better data is needed to measure creative industries’ contribution to inclusive economic transformation and sustainable development, and it is important to involve every authority and institution working in the cultural and creative sector, national statistical offices and central banks in compiling data for measuring the contribution of the creative economy to GDP, employment, trade and well-being.
BAHTIJORS HASANS (Latvia), President of the Trade and Development Board, presented the reports of that body (document A/77/15). He stressed that the war in Ukraine came on top of an already delicate global situation and as a direct consequence, threats to multilateralism, global economic uncertainties and instability in the financial market, as well as the increase in maritime transportation costs, have all been accentuated. Outlining individual topics, he shared that the Board discussed how capital markets and sustainable finance can be utilized to revive global progress towards attaining the Sustainable Development Goals. On the least development capacities, he added, the Board concluded that mainstreaming development of productive capacities in the countries is a necessary condition for boosting their capacities to respond to and recover from the crisis.
He went on to highlight that the Board concluded that inter-African tariff barriers and non-tariff measures need to be reduced, while outlining agrifood processing and automobile industries as a potential driver of the continent’s transformative growth. Turning to digital data and its implications on development, he stated that the Board called for a full participation of all countries to ensure that data flows securely across borders, while ensuring equality in the distribution of benefits within and between countries and addressing risks related to human rights. On development issues in the occupied Palestine territory, the Board stressed the importance on the pace of recovery in removing the constraints imposed by the occupation, he added.
SHARI SPIEGEL, Chief of the Policy Analysis and Development Branch in the Financing for Sustainable Development Office of the Department of Economic and Social Affairs, presented three reports, beginning with the Secretary-General's report on the follow-up and implementation of the texts resulting from the International Conferences on Financing for Development (A/77/223). The report covers progress made since the adoption in 2015 of the Addis Ababa Action Agenda and the Sustainable Development Goals, reviewing the challenging global environment, the difficulties to be overcome, in particular the consequences of the rapid changes that are shaking the world, and proposing courses of action to achieve the ambitions of the agreements and the objectives in the new context of financing for sustainable development.
GDP growth in developing economies will decline and global growth will contract, she noted, with soaring energy prices driving inequality and presenting a difficult environment for policymakers. Central banks are raising interest rates, with the risk of capital flowing out of developing countries. More than 20 developing countries have foreign bond yields of more than 10 per cent. One in five countries faces fiscal and financing problems, while many are over-indebted. However, all is not gloomy, she stated, referring to agreements on tax cooperation and advances in financing for development. Although official development assistance (ODA) has reached historic levels, it does not match national commitments, and funds are not always directed to the most vulnerable countries, she noted. Even if there are solutions at the country level, since most States cannot do it alone, multinational action is needed.
Presenting the Secretary-General’s report on international financial system and development (A/77/224), she observed that the current system has not allocated resources properly or dealt with risks and shocks or changed with the world. Since the 2008 financial crisis, the international financial system has been strengthened, but risks persist. Many countries have borrowed at near-zero interest rates, but with rates rising, there are risks of market volatility. Addressing International Monetary Fund (IMF) special drawing rights, she explained that they should be directed to countries most in need. She further underlined that achieving the Sustainable Development Goals requires a real transformation of the international financial system. With this in mind, the Secretary-General has called for long-term funding, and the global financial safety net should be strengthened and adapted to new challenges, she stated, adding that global governance must also be reformed.
Taking up the Secretary-General’s report on international coordination and cooperation to combat illicit financial flows (A/77/304), she cited corruption, tax avoidance and tax evasion. She noted it is the first such report and highlights the ways in which Member States can meet their commitment to eventually eliminate illicit financial flows. The report highlights that the Financial Action Task Force decided in March 2022 to strengthen the ownership standard for legal persons. As a result, countries committed to Task Force standards are now required to ensure that beneficial ownership information is held by a public authority or body operating as a beneficial ownership registry.
The first asset recovery data survey since 2014 found that 59 States reported recovering nearly $10 billion in proceeds of corruption frozen, blocked or confiscated since 2010. The Secretary-General indicates that despite progress, many challenges remain in the fight against illicit financial flows. Action is therefore needed in three main areas: better application of existing standards; strengthening international standards to fill gaps and respond to changing risks; and improving national enforcement capabilities. Transparency must be the foundation of these efforts, but without political coordination, all the issues addressed by the report will not find a long-term solution.
STEPHANIE BLANKENBURG, Head of the Debt and Development Finance Branch in the Division on Globalization and Development Strategies, UNCTAD, presented the Secretary‑General’s report on external debt sustainability and development (document A/77/206). She noted that external debt stocks of developing countries rose to $11.9 trillion in 2021, up from $11.3 trillion in 2020. While this overall increase was largely driven by positive developments such as the recovery from the pandemic, she added that such positive developments were offset by some factors. Those factors were, she continued, that the level of insolvency indicators remained high for all country groups in 2021; the average group performances masked large in-group differences in performance; and the positive momentum of the first three quarters of 2021 had been largely reversed since the last quarter of 2021 and into 2022.
Considering this trend, she stated that the multilateral response to increasingly unsustainable external debt burdens in a growing number of developing countries remains insufficient, adding that “the time has come to redouble efforts and reach political consensus for more substantive, structurally effective debt relief, delivered in a more systematic manner.” In this regard she emphasized the need for a multilateral framework for sovereign debt restructurings and relief to facilitate the timely and orderly resolution with all creditors involved. Along these lines, she shared that the report has made two recommendations — establishing a publicly accessible registry for debt data of developing countries to further strengthen debt transparency, as well as the use of the forthcoming multidimensional vulnerability index for the allocation of development financing.
ANU PELTOLA, Senior Statistician of UNCTAD, presented sections of the “Sustainable Development Goals Pulse Report”, which is available on the United Nations website, and the Report on illicit flows 2022, formerly referred to as the “Trade and Development Report”, which will be issued at a later date. Introducing the key message of the standalone report on illicit financial flows, prepared in consultation with United Nations Office on Drugs and Crime (UNODC), and the relevant sections of UNCTAD’s Sustainable Development Goals Pulse online publication, in response to resolution A/RES/76/196, she highlighted three critical aspects: agreement on concepts to measure illicit financial flows; capacity development and pilot testing of methods to track illicit financial flows; and recommendations for further work.
UNCTAD and UNODC are custodian agencies of Sustainable Development Goal (SDG) indicator 16.4.1 on illicit financial flows, and at the request of Member States, the two agencies have developed concepts and methods to measure different types. In March 2022, all Member States endorsed the resulting “Conceptual Framework for the Measurement of Illicit Financial Flows”. As a result, there is a globally agreed definition for the statistical measurement of illicit financial flows. She noted there is a need to streamline work to use harmonized concepts and methodologies to quantify those flows using the best possible data available to national authorities.
She further noted that capacity development efforts need to be strengthened to improve statistical capacity to track illicit financial flows and design more effective measures to curb them. In May 2022, the Committee of Experts of the Conference of African Ministers underlined the need “to build the capacity of African countries to tackle the gaps in institutional architecture, with a view to developing their ability to track, measure and report on the evolution of illicit financial flows under SDG 16.4.1, and to devise measures to curb illicit financial flows”. Now 22 countries have pilot tested measurement methods using common statistical standards and resources made available by UNCTAD and UNODC.
She stressed that support to Member States needs to be strengthened to enable full benefits from the methods, tools and resources developed to launch global reporting on Goal indicator 16.4.1 on illicit financial flows, and enable a more coherent and targeted policy response. The 22 pilot studies have shown the flows can be measured, and do so mainly by reusing existing data, though there is a need to improve data quality, fill gaps and strengthen infrastructure, skills and resources. The ability to measure illicit financial flows will convert in the possibility to curb them and recover stolen assets, thus maximizing the investment on capacity-building.
She noted the need to support country-level risk profiles to inform the policy processes to curb the flows and commission further work on illicit trade, in line with the Bridgetown Covenant which expanded UNCTAD’s mandate into illicit trade. An effective policy response will require investment in technical and institutional capacities of developing countries to prevent them from losing out on tax revenues due to continued capacity and legal constraints on the implementation of needed reforms. With the notable progress in digital data, statistical methods and tools to track illicit financial flows, the international community will be better equipped to undertake more informed and targeted policy measures.
JAME ZHAN, Director of the Investment and Enterprise Division, UNCTAD, introduced a dedicated section of the World Investment Report 2022, as transmitted in the note by the Secretary-General (document A/77/499). While global foreign direct investment (FDI) flows in 2021 totalled $1.58 trillion, up 64 per cent from the exceptionally low level in 2020, he added that the food, fuel and finance crises caused by the war in Ukraine will put significant downward pressure in 2022. Similarly, he noted that the prospect for international investment in sectors related to the Sustainable Development Goals point to a decline in 2022, underscoring that more than 60 per cent of international private investment in sectors relevant to climate change are invested in developed countries.
Citing an UNCTAD estimate that the value of sustainability-themed investment products in global financial markets grew to $5.2 trillion in 2021, he stressed that concerns remain about greenwashing and the real impact of sustainability-themed investment products — because such products lack consistent standards and high-quality data to assess their credentials. Touching upon the Base Erosion and Profit Shifting project, which is expected to be implemented in early 2024, he expressed that both developed and developing economies are expected to benefit substantially from increased revenue collection. He further recommended that the international community should alleviate the constraints that developing countries, especially least developed States, face in taking advantage of the introduction of the global minimum tax. Specifically, he proposed scaling up technical assistance to developing countries to support Base Erosion and Profit Shifting implementation; adopting a multilateral solution to remove implementation constraints posed by the International Investment Agreement; and establishing a mechanism to return any revenues raised by developed home countries that should have accrued to developing host countries.
The representative of Egypt noted that there is a problem with the international debt architecture, asking which policy priorities at the national level can help address unsustainable external debt burdens. He further asked how increased cost of living and monetary tightening in advanced economies will affect developing countries’ external debt sustainability in the future.
Ms. BLANKENBURG responded that the tightening of monetary and fiscal policy has a direct impact on debt sustainability because it increases the cost of debt. Consecutive interest rate increases by the Federal Reserve System are estimated to cost developing countries $510 billion, which is three times ODA. She reiterated that it is high time for Member States to reconsider if there are grounds to build on the Group of 20 (G20) framework, and addressed reallocation of special drawing rights.
The representative of Pakistan asked what can be done to accelerate investment in the Sustainable Development Goals in developing countries. He also asked what is needed to scale up the availability and accessibility of sustainability-themed funds for developing countries.
Malawi’s representative asked for briefers’ recommendations regarding the rules governing the operations of both international financial institutions as well as the national Governments.
The representative of Brazil asked whether there have been more trade restrictions than trade liberalization policies in the past years or months. He also asked to elaborate on the prospects of FDI globally and in developing regions.
South Africa’s delegate asked for elaboration on why inflation has continued in developing States despite developed countries’ efforts in raising interest rates. He further asked what further measures linked to trade they would recommend in fighting inflation in developing countries.
Responding to the representatives of Brazil and South Africa, Ms. SHIROTORI underscored the importance of focusing on the factors that determine the stability of the global value chain as well as on what the international community can do in this regard. On fighting inflation, she pointed out that reducing or eliminating speculative activities in sectors such as grains and energy has the potential to take out “quite a big portion” of the inflationary pressure in many developing countries.
Ms. SPIEGEL responded that when private investors see risk, they don’t invest. Risk perception must be lowered, she said, citing the role of public sector development banks and rethinking blended finance with the private sector. There is a lot of greenwashing going on, and a lot of instruments are not sustainable. She further addressed how to align taxonomies, and the branding of funds. It is important to strengthen the global financial safety net, and support development with special drawing rights. She stressed two issues on debt: countries in immediate crisis about to default, and those paying 20 per cent of revenue to service debt.
JOERG WEBER, speaking on behalf of Mr. ZAHN, said there are indications that some developing countries will not see FDI recovery in 2022. Investment in the Sustainable Development Goals and climate will suffer. He further cited national frameworks for sustainable finance, the sustainable stock exchange initiative and the importance of international cooperation.
MOHAMMAD AAMIR KHAN (Pakistan), speaking on behalf of the “Group of 77” developing countries and China, said financial structures were negotiated by the rich, for the rich. The income gap between industrial and developing countries has significantly widened, and while efforts by United Nations agencies have been made to reform the Bretton Woods and WTO regimes, they have been unsuccessful. The level of support required for the Addis Ababa Action Agenda had fallen short — even before the pandemic. The series of external shocks to the global economy, spike in the prices of commodities and goods, climate change and geopolitical tensions have had a disproportionate impact on the poorest countries and peoples. Interest rates are rising and “third world” currencies are depreciating, pushing over 100 million people back into poverty, with developing countries facing the triple challenge of meeting their needs of food, fuel and finance. Over 50 developing countries are in debt distress and many may need to default.
While commending efforts by the Secretary-General to assist the poorest and most vulnerable, he stressed there is no real road map to rebalance systemic deficiencies of the global economic system and the relationship between capital, labour and the environment. It is essential to create new special drawing rights and reallocate those unused, address the debt distress of nearly 60 developing countries and mobilize at least $100 billion for climate finance. He also called for a review of the role of credit rating agencies to reduce reliance of subjective evaluation of risk, and mobilization of $1 trillion annually in quality investment in infrastructure in developing countries. It is similarly critical to discuss fair taxation and reform the international trading system. The international community must work towards an equitable international technology regime to bridge the digital gap, and eliminate unilateral coercive measures against developing States.
TUMASIE BLAIR (Antigua and Barbuda), speaking on behalf of the Alliance of Small Island States and aligning himself with the “Group of 77” developing countries and China, noted that the negative and slow growth rates facing much of the world are reminiscent of the hardship and struggle that should have become notations in history. Recalling the Secretary-General’s report, which states that the external debt stocks of small island developing States has reached new record levels of $66.1 billion, raising the ratio of debt service costs to export revenues from 37 per cent in 2019 to 41.1 per cent in 2021, he said: “Our fiscal space is no longer limited, it just doesn’t exist”. This increase is far more than any other country grouping; at the same time, many small island developing States do not qualify for concessional financing, or the emergency loans being doled out by international financial institutions, he pointed out.
States such as his have their backs against a wall, he added, highlighting the importance of the “Small Island Developing States Compact” and meeting the commitments that the international community agreed on in 2014 through the Samoa Pathway and as far back as 1992 when small island developing countries attained the global classification as a special case for sustainable development. Rejecting the imposition of unilateral coercive economic measures against developing countries, he called on the international community to adopt and implement a multidimensional vulnerability index. Furthermore, the creation of a loss and damage fund at the twenty-seventh session of the Conference of the Parties to the United Nations Framework Convention on Climate Change is critical in addressing the economic impact of climate change on small island developing States, he emphasized.
MOHAMMAD KURNIADI KOBA (Indonesia), speaking on behalf of the Association of Southeast Asian Nations (ASEAN) and aligning himself with the Group of 77, said that States must strengthen solidarity to build back better and be resilient. ASEAN is strengthening its cooperation with others to address COVID-19 pandemic challenges and to prepare for future public health emergencies. A high vaccination rate enabled the ASEAN economy to grow by 3.4 per cent in 2021 and the region is optimistic that that momentum will continue this year and next.
He added that States must “walk the talk” and strengthen international trade and development. For ASEAN, keeping markets open to trade and investment strengthens the resiliency and sustainability of regional supply chains, he said, noting that the Regional Comprehensive Economic Partnership Agreement — which entered into force on 1 January and created the world’s largest free trade area — will contribute significantly to economic recovery. More innovative financing mechanisms are needed to generate development financing, he continued, citing as examples the ASEAN Infrastructure Fund and the ASEAN Sustainable Development Goals Bond Toolkit for issuing bonds which are aligned with the Goals.
REGINA KUMASHE AONDONA (Nigeria), speaking on behalf of the African Group and aligning herself with the Group of 77, stated that her continent is not on track to meet its goal of eradicating poverty in one generation. Pointing out that the volume of African trade remains low at 3 per cent of global trade, she stressed that expanding and diversifying Africa’s participation in international trade and global value chains will enable it to reduce poverty on a large scale and transform its economy. Referring to the establishment of the African Continental Free Trade Area, she underscored that it represents opportunities to create employment and reduce the impact of commodity price volatility, as well as provide increased resilience to global shocks and promote the exchange of a more diverse set of goods.
Addressing the structural challenges limiting the region’s export capacity, she highlighted the need for trade frameworks that help to expand and diversify the continent’s access to export markets. She added that such frameworks would contribute to increased investments in sectors other than natural resources and help to build up productive capacities, improve digital connectivity and enhance access to infrastructure through the creation of special economic zones. Noting that the continent needs financial support of up to $400 billion between 2021 and 2025, she said that the Debt Service Suspension Initiative and other multilateral measures are still insufficient to meet its development needs. She further expressed concern that “Africa’s decomposition indicates that the debt dynamics have mainly been driven by accumulated depreciation in exchange rates, growing interest expenses and high primary deficits”.
LORATO MOTSUMI (Botswana), speaking on behalf of the Group of Landlocked Developing Countries, highlighted the development challenges faced by members of the bloc, due to geopolitical tensions as well as the global macroeconomic imbalances caused by the lagging impact of extraordinary fiscal and monetary policies enacted by developed economies in the face of the pandemic. Financing for development has become difficult precisely at the time when landlocked developing countries required the opposite, she noted, adding that while it is understandable for developed economies to introduce appropriate measures to combat inflation, it is critical to be cognizant of the deep reverberations that such policies can have on the rest of the world. Highlighting the need for enhanced levels of ODA, she added that special attention should be given to the alleviation of transport connectivity constraints and natural resource reliance.
Turning to debt sustainability, she pointed out that nine landlocked developing countries were at a high risk of debt distress and two are already in debt distress. Calling for debt restructuring and suspension of debt reservicing, she added that a coordinated global effort involving all stakeholders, including the private sector, is imperative to finding lasting solutions. Also pointing to the importance of private investment in landlocked developing countries, particularly in dynamic manufacturing and service sectors, she highlighted the need for investment guarantees, blended finance, interest rate subsidies and impact financing instruments. The current unprecedented moment presents an opportunity to set the foundation for long-term economic resilience, provided all stakeholders work together in a spirit of solidarity, she emphasized.
STAN ODUMA SMITH (Bahamas), speaking on behalf of the Caribbean Community (CARICOM) and associating himself with the Group of 77, emphasized that developing countries, and particularly small island developing States, lack the capacity to respond independently to global crises. Multilateral support is necessary and crucial, and it should be targeted with decisive action. He called for a restructured international financial architecture, explaining that a system driven by development, rather than by debt, will open the way to more innovation and solution-based tools for accessing development financing which drives social and economic sustainability.
He reiterated CARICOM’s call for repositioning the financial system to provide liquidity where it is most needed, debt swaps to fund implementation of the Goals, increased multilateral funding and debt relief for middle-income countries and small island developing States. IMF should redirect the unused portion of its $650 billion allocation of special drawing rights to those places where it is most needed, and for processes for the rechannelling and reallocation of those rights to be accelerated without delay for the benefit of developing countries, he added.
JOAQUÍN ALBERTO PÉREZ AYESTARÁN (Venezuela), speaking on behalf of the Group of Friends in Defence of the Charter of the United Nations, stressed that the global multifaceted crises are exacerbated by the illegal promulgation and implementation of unilateral coercive measures which, not only constitute a flagrant violation of the purposes and principles enshrined in the Charter, but also constitute a deliberate attack on the right to development of millions of peoples. On financing for development, he called on international financial institutions to create conditions that will allow for greater access to financing on favourable terms and without politicization of any kind, while also calling for greater participation of developing countries in all relevant economic decision-making bodies and institutions. He also stressed the importance of achieving a fair and equitable international trading system that pays special attention to the vulnerabilities of developing countries, promotes sustainable development and excludes the imposition of unilateral coercive measures.
Highlighting that ODA remains the main source of international financing for development for many countries in the global South, he urged developed countries to fulfil their commitments. Also recalling that South-South cooperation is a complement to, rather than a substitute for North-South cooperation, he reiterated the importance of observing the principle of “common but differentiated responsibilities”, as well as that of “special and differential treatment” for developing countries. Turning to debt sustainability, he further called on multilateral and commercial creditors to take immediate action and ensure that proper assistance be provided to all developing countries in need.
AGNES MARY CHIMBIRI MOLANDE (Malawi), speaking on behalf of the Group of Least Developed Countries and associating herself with the Group of 77, stressed those States, being the most vulnerable, are the hardest hit by all crises. Despite international commitments to double the least developed countries’ share of global exports by 2020, it remains below 1 per cent, roughly the same level as in 2011. The trade deficit reached $84 billion in 2021 — around 7 per cent of their GDP. She cited good news is that the Doha Programme of Action has reset the target to double their exports.
While the average interest cost for developed countries is around 1 per cent, the least developed States are paying around 8 per cent. Meanwhile, she noted the share of public debt as a share of GDP increased from 45 to 57 per cent between 2015 and 2021, and the public and publicly guaranteed debt service increased by 27 per cent. As a result, the countries on average dedicate 14 per cent of domestic revenue to interest payments compared to the 3.5 per cent that developed countries spend. The States urgently need a new round of comprehensive debt relief measures to address the burgeoning debt problem, with investment remaining mostly stagnant at around 2 per cent of the total global share.
On agenda item 17, she noted donors continue to fail to meet their commitment to provide 0.7 per cent of ODA per gross national income. Developed countries must fulfil their pledge to provide $100 billion in annual climate finance and assume the major responsibility to reduce global emissions and reach the net zero target well before 2050. Calling for reallocation of special drawing rights from $250 billion to provide additional liquidity, she stressed “if we don’t swim together, we will sink together”.
MANUELA RÍOS SERNA (Colombia), speaking on behalf of the Like-Minded Group of Countries Supporters of Middle-Income Countries, called for systemic reforms to the international financial system and the current development cooperation paradigm to increase fiscal space, allowing concessional resources and technical cooperation in a more effective, fair and equitable way. The universal application of measures of progress that go beyond GDP must be at the centre of these reforms. International financial institutions, multilateral development banks and development partners need to stop using income per capita as the sole criteria to allocate their financial resources. She noted the work advanced by the high-level expert panel on the multidimensional vulnerability index has served as an inclusive and consultative example on how to move towards the recognition of vulnerabilities, external shocks and resilience as critical factors to be considered when discussing access to financing.
Structural gaps and endogenous factors remain widely unattended under the current development cooperation paradigm — particularly harmful for middle-income countries, which have experienced major setbacks in their hard-won development gains, particularly on extreme poverty, inequalities, the creation of decent job, food security and the development of universal systems of education, health and social protection, among others. She proposed the initiation of an intergovernmental process in consultation with relevant stakeholders, including international financial institutions, multilateral development banks and regional commissions, to establish the set of measures of progress on sustainable development that complement or go beyond GDP.
ALAN EBUN GEORGE (Sierra Leone), aligning himself with the Group of 77, African Group and the Group of Least Developed Countries, said that his Government over the last two years has focused more on domestic revenue mobilization with the implementation of an Integrated National Financing Framework, to strengthen resilience. This has included the operation of an integrated tax administration system that gives taxpayers access to an online portal to register and de-register for taxes, file their returns and receive payment notices. It also rolled-out an electronic cash register system for businesses to boost goods and services tax and established tax offices in dense business areas.
AHMED MAGDY MOHAMED RASHAD ABDELAAL (Egypt), aligning himself with the Group of 77 and the African Group, called on development partners to ease the debt burdens of developing countries, including all public and private creditors, and make necessary reforms to the international debt architecture. He stressed the importance of concerted, multilateral efforts to create a more stable macroeconomic environment to guide developing countries back on track to achieving the Sustainable Development Goals. International financial and trade institutions must work with the international community to take effective measures to maintain the stability of global financial markets and supply chains to facilitate the free flow of trade and to promote global economic recovery.
WASMIAH ALDHIDAH (Qatar), aligning herself with the Group of 77, and noting that the second part of the Fifth United Nations Conference on the Least Developed Countries will be held in her country in 2023, expressed hope that the event will mark a turning point in efforts to respond to the expectations and aspirations of the least developed countries. On the pandemic, she shared that her country has provided roughly $70 million to various organizations including COVAX and the World Health Organization (WHO), with a view to ensuring that there was enough medical equipment to deal with the pandemic. To tackle climate change, she further noted that its Government fund provides assistance to least developed countries and landlocked countries to boost their food security and come up with sustainable solutions to building their capacity and increasing their resilience.
LOUISMONGKOL SAPKU (Thailand), aligning himself with the Group of 77 and ASEAN, reaffirmed the Government’s unwavering commitment to uphold the rules-based multilateral trading system, with WTO at its core. To safeguard an open and non-discriminatory environment in the digital age, the international community must foster inclusive digital ecosystems to enable cross-border trade and transactions. As the host economy of Asia-Pacific Economic Cooperation (APEC) 2022, Thailand will further discussions on trade in environmental goods and services and empower its medium and small businesses to tap into the potential of green technologies as the world shifts to a low-carbon economy.
JESWUNI ABUDU-BIRRESBORN (Ghana), associating himself with the Group of 77 and the African Group, encouraged the development of trade to deal with the consequences of the pandemic and the current crisis in Ukraine. He voiced concern about restrictions on international trade due to the conflict, which is undermining the global supply of goods. He stressed the importance for Africa of diversifying its economy and trade within the framework of the creation of the African Continental Free Trade Area. However, he voiced regret over the lack of political will to move from words to deeds. Addressing debt burdens, he recommended relieving the pressures on African countries through the reform of the international financial system.
TAPIWA ROY RUPENDE (Zimbabwe), aligning himself with the Group of 77, African Group, Group of Landlocked Countries and the Group of Friends in Defence of the Charter of the United Nations, stated that in the face of the growing crisis, the voices of the countries with pre-existing vulnerabilities including those on his continent, least developed and landlocked countries must not only be included but should be at the centre of discussions at this Committee. Underscoring the situation where most countries in the global South remain vulnerable due to their dependence on commodities trade, he described this situation as a “serious indictment of the current trading architecture”. Highlighting that the unilateral measures imposed on his country by “some Western Powers” that hinder its full participation in the global economy violate the Charter, he pointed out that such measures negatively impact the well-being of its people and their right to development. He further stressed that it is crucial that ODA providers make efforts to meet the 0.7 per cent commitment to accelerate the world’s recovery from the pandemic.
NIRUPAM DEV NATH (Bangladesh) noted that the financing system is not aligned with the Sustainable Development Goals and has proven unable to cope with global shocks such as the pandemic. He called for reforms for access to affordable and long-term financing. He called for launching a global discussion, including at the next International Conference on Financing for Development and emphasized that countries are at risk of facing, or already facing, over-indebtedness. Seeking to emphasize the importance of comprehensive measures to alleviate debt and meet the specific needs of the most vulnerable countries, he stressed that no one should be left behind in terms of vaccine availability, funding or new technologies. Large sums of money are needed with very low interest rates to deal with this crisis — however, the response by developed countries has been lacking.
REGINA KUMASHE AONDONA (Nigeria), aligning herself with the Group of 77, said there is an urgent need to address the systemic imbalance and institutional deficiencies in the global tax treaties and tax structure. This situation has created an unsuitable international tax system with a taxing rights regime that hinders effective measures to combat tax abuses, especially those by multinational corporations. That creates a real dilemma for most developing countries. A fairer international tax regime will potentially eliminate financial secrecy jurisdictions, as well as tax havens, that enable base erosion and profit shifting around the world.
PATRICIA CHAND (Fiji), aligning herself with the Group of 77 and the Alliance of Small Island States, said climate change is the most significant threat to humanity since the Second World War and people and communities across Cuba, Puerto Rico, Florida and Pakistan are on the frontlines. There is the Paris Agreement and the 1.5°C commitment to follow. What recently happened in Pakistan and Florida cannot be allowed to be the new normal. The international community needs to work together to secure $100 billion in core financing for climate change; agree and implement a loss and damage facility; and begin discussions for a post-2025 framework of no less than $750 billion, of which there must be a dedicated window for small island developing States.
WALTER JOSÉ MIRA RAMIREZ (El Salvador), aligning himself with the Group of 77 and the Like-Minded Group of Countries Supporters of Middle-Income Countries, said that to make up for the delay in attaining the Sustainable Development Goals, the international community needs to move from reiterating commitments concerning financing for development to taking concrete steps that can foster implementation. While middle-income countries account for 75 per cent of the global population, he added, international cooperation towards that group of countries has been “somewhat limited with a low allocation of multilateral funds”. In this regard he stressed the urgent need to amend the financial architecture and global governance to go beyond the references based on income per capita, and to promote a precise and fair allocation of resources. On the national level, he shared that his Government has taken measures to ensure a better environment for investment, economic stability and greater trading opportunities.
AUDREY FAY GANTANA (Namibia) lamented that there is still no forum for tax collaboration at the international level. However, Namibia has emplaced structures to make its tax administration more efficient, even if the national fiscal space appears limited. She urged the international community to institute a fairer and more transparent international system, further calling for eliminating coercive measures that affect countries like Cuba and Zimbabwe.
SEYDOU SINKA (Burkina Faso), aligning himself with the African Group, Group of 77, Group of Least Developed Countries and the Group of Landlocked Developing Countries, stated that his country faces several macroeconomic challenges including: diversification of expertise; local processing of exports; making improvements in products which are produced for the domestic and international markets; fighting against unfair competition; and improving its national certification system. Debt as a means of funding development has increased to $11 billion in 2021, which mostly consists of domestic debt. Debt servicing increased by 23.4 per cent per annum between 2017 and 2021 with overwhelmingly domestic debt as opposed to external debt, he added. Stressing that his country has lived through an unprecedented security crisis for years, he pointed out that the current transition has focused on combating terrorism, restoring territorial integrity and responding to the humanitarian crisis. He called for support of its partners “to ensure that this transition is crowned with success”.
NEBIYU TEDLA NEGASH (Ethiopia), aligning himself with the Group of 77 and the African Group, underscored the importance of taking action at all levels to address the implementation gaps of the Addis Ababa Action Agenda, in light of the profound economic crisis triggered by the pandemic. He emphasized that to establish a more favourable economic and financial environment aligned with the 2030 Agenda, the international community needs to mobilize resources from the private sector. Highlighting that his country has faced resource constraints, including rising debt, which poses impediments to sustainably financing its development programmes, he stressed the need to design and implement coordinated policy frameworks, in line with national contexts, regarding the growing debt and financial vulnerabilities of developing countries.
DIEGO BELEVÁN (Peru), associating himself with the Like-Minded Group of Countries Supporters of Middle-Income Countries, said a sustainable world requires more intelligent investment. One of the major problems is the need to choose between short-term and long-term priorities. He stressed that with the use of GDP as indicators, States will not be able to attain any goals. During the pandemic, many States increased their debt to deal with the recession it brought on. On 28 October 2021, Peru issued sustainable bonds for the first time in its history, showing that investors are interested in those products even if they come from developing States. He noted they were intended to fund environment and health care, further stating that 40 per cent of global GDP has been affected by the crisis. There must be alternative forms of financing that are realistic. Calling for amending the production of goods and services, from food to transport to fuel, financing for development does not come from a vacuum and must be tailored to circumstances and changing needs.
GUO JINGNAN (China), aligning herself with the Group of 77, stressed that countries, especially those with advanced economies, need to adopt responsible fiscal and monetary policies to avoid any spillover to other countries leading to inflationary spirals, volatile exchange rates and increases in debt. On climate change, she stressed that countries should honour their ODA commitments and the $100 billion climate financing pledge. The international community should reject trade protectionism and promote the liberalization of trade and investment. Noting that international financial institutions should play a constructive role in preventing systemic risks, she highlighted the importance of giving various countries greater representation in international economic and financial governance.
JOAQUÍN ALBERTO PÉREZ AYESTARÁN (Venezuela), speaking in his national capacity and associating himself with the Group of 77, recalled that his country is subject to 913 economic and financial sanctions applied by the United States and the European Union, which have cost it losses of $150 billion. In addition, 30 tons of gold from Venezuela deposited in the Bank of England are frozen, preventing the country from obtaining medical supplies and operating its hospitals and computer networks. However, he affirmed that despite this situation, Venezuela’s economy shows signs of recovery and is pursuing the path of sustainable development.
BANDAR KHALIL (Saudi Arabia), aligning himself with the Group of 77, stressed that as a hub for international trade, his country has undertaken measures to ensure greater stability in the international oil market. In its Vision 2030 plan, he underscored, Saudi Arabia seeks to overhaul its financial structures to strike a better balance in terms of tax receipts and spending. On tackling illicit financing, he spotlighted the Riyadh Initiative, a global network of authorities tasked with enforcing the law on this issue.
MERYEM HAMDOUNI (Morocco) said there will be no global recovery without an international financial system that supports the Sustainable Development Goals. Citing the Secretary-General’s idea of launching a plan to support the sustainable development of developing countries, she called for the reform of the international financial system and urged the international community to resolve the issue of indebtedness, in particular of African countries. She further recalled the Marrakesh Declaration, which calls on the Bretton Woods institutions to help the indebtedness of African countries by launching specific drawing rights and increasing ODA. She called for an inclusive approach to access to finance, and for the use of new financing criteria other than those linked to GDP. She encouraged private and foreign direct investment, as well as climate finance for adaptation, in favour of African and developing countries.
The representative of Iraq, aligning himself with the Group of 77, reiterated the need for an equitable international trade system as well as to keep markets open and predictable, especially in the areas of energy and food. While his country has supported the prosperity of the world economy since the beginning of the twentieth century as an oil producer, it has become the most vulnerable in front of climate change. In this regard he emphasized that all the measures taken to address climate change should be more realistic and bring into consideration the economic realities and the differences from one country to another.
HUSSAIN AZHAAN MOHAMED HUSSAIN (Maldives), aligning himself with the Group of 77 and the Alliance of Island States, said that his country faces mounting risks from climate change as the pandemic shows the importance of strengthening resilience to all types of external shocks. As the effects of climate change intensify, the international community needs to urgently accelerate investments in climate adaptation, mitigation and resilience. He looked forward to a results-oriented Climate Change Conference in Egypt in November. The latest Intergovernmental Panel on Climate Change report clearly shows the window to act towards limiting global temperature rise is rapidly closing. He called on all partners to work together in good faith to finalize a loss and damage financial mechanism that benefits all countries, especially the most vulnerable.
PEDRO LUIS PEDROSO CUESTA (Cuba), associating himself with the Group of 77, Alliance of Small Island States and the Group of Friends in Defence of the Charter, said the pandemic has exacerbated pre-existing structural problems in developing countries. They prioritized spending on health care and social protection, while seeing their economies contract. Fiscal restrictions have prevented Governments from taking measures to protect their people. External factors have hindered previous progress towards sustainable development, and it is lamentable that very few developed States are still fulfilling their commitments to provide 0.7 per cent of their GDP for ODA, while some spend trillions on their militaries. He stressed the urgency of lasting solutions for external debt, and structural changes to the international trading system. The multilateral trading system cannot be used for narrow interests, he stated, rejecting the use of unilateral coercive measure including the 70-year unjust embargo imposed by the United States Government.
BORIS A. MESCHCHANOV (Russian Federation), aligning himself with the Group of Friends in Defence of the Charter of the United Nations, and noting that his country has allocated $1 billion in ODA every year, stressed that the international community must step up its joint efforts to deliver on the Sustainable Development Goals. Stressing the need for stable trading conditions underpinned by WTO principles, he made a proposal to abolish all barriers against developing countries including those erected for political purposes or to gain a competitive advantage. “We need to move away from the veto power of a narrow group of countries,” he added.
KYAW MOE TUN (Myanmar), aligning himself with the Group of 77, stated that all the economic and financial achievements made by his country’s elected civilian Government were overturned by the illegal military coup in February 2021. Pointing out that over 40 per cent of his country’s population are living below the national poverty line, he underscored that “current detrimental economic conditions and the multidimensional ruins of the coup highlight the absolute inability of the military to govern the country”. Only if the military dictatorship is eliminated and democracy is restored can his country continue towards the fulfilment of the Sustainable Development Goals, he added.
SOMOLY HENG (Cambodia), aligning herself with the Group of 77 and ASEAN, stated that developing the green economy through promoting energy transition, leveraging green technology and investing in digital infrastructure is the top priority of her Government. She added that that this policy will also bridge the growing digital divide and generate a new source of growth. To achieve the Sustainable Development Goals by 2030, she stressed that international financial institutions, United Nations agencies and the private sector must do much more in mobilizing and securing adequate and sustainable resources to that end.
The representative of Malaysia, aligning himself with the Group of 77 and ASEAN, stressed that developing countries need special drawing rights and ODA more than ever to bridge the funding gap for attaining the Sustainable Development Goals, which has expanded up to $135 trillion. Reiterating the need to reform the international financial architecture to ensure a more just and effective system that balances the needs of universal development, he also emphasized that the imposition of unilateral coercive measures was counter-productive and hampered the overall efforts towards achieving recovery from the decline in the Human Development Index for two successive years. Calling for a free and open trade and investment architecture, he underscored that trade policies must be non-discriminatory and tailored to facilitate the implementation of the Sustainable Development Goals.
MARITZA CHAN VALVERDE (Costa Rica), associating herself with the Group of 77 and the Like-Minded Countries Supporters of Middle-Income Countries, said that trade volume increased by just 4 per cent in developing countries, compared to 13 per cent globally. It is essential to review the international financial system, by applying the principles of prevention, preparation and reaction. Frameworks that consider the multidimensional aspects of the Addis Ababa Action Agenda are also necessary for future economic and financial choices, she continued. In that sense, the multidimensional development index should be an essential tool to establish a very precise picture of the needs of each country. She stressed that developing economies are forced to make a choice between implementing the Sustainable Development Goals and paying off debt. It is a moral duty to respond to the needs of the most vulnerable countries to achieve sustainable development.
THANH HOAI LE (Viet Nam), aligning himself with the Group of 77 and ASEAN, stressed that the global financial and economic structure should be more inclusive. Developing countries can and should play a more important role in the decision-making process at international financial institutions. Noting that access to concessional finance should be expanded to provide better platforms and resources for developing countries, he further urged Member States and stakeholders to finalize the development of the multidimensional vulnerability index. Reiterating the special challenges faced by middle-income countries in mobilizing external resources for sustainable development, he echoed the call for developed countries to fulfil their commitments, including allocating 0.7 per cent of their gross national income to ODA and upholding the annual $100 billion commitment for climate adaptation and mitigation.
TEODORO SANTIAGO DURÁN MEDINA (Ecuador), aligning himself with the Group of 77 and the Like-Minded Group of Countries Supporters of Middle-Income Countries, stressed that the international community needs to uphold commitments for cooperation for development, particularly those pertaining to ODA, through providing additional, predictable and sufficient financial resources. Noting that the support provided by multilateral banks is critical in the current socioeconomic context, he called for their technical advice and implementation of measures that go beyond GDP to provide credit on favourable terms. Touching on the need to diversify the global productive base, he emphasized that broadening access to agricultural and industrial products from developing countries will contribute to creating jobs and help them pay their debt.
MAHAMAN MOUSSA (Niger), associating himself with the Group of 77, Group of Least Developed Countries and the Group of Landlocked Developing Countries, said that in regard to the security context in the country, the Government has spared no effort to increase economic growth — which reached 4.6 per cent in 2021, somewhat below the 8 per cent mark hoped for. Combating terrorism and stemming the pandemic are fully in line with their Sustainable Development Goals, he added. He also reported that Niger has a food security initiative and is working to improve production. He called on all the country’s partners to mobilize towards economic and social development plans.
THERESAH CHIPULU LUSWILI CHANDA (Zambia) called on Member States, especially developed countries, to eliminate trade restrictions and trade distortions in the world market, especially in the agricultural sector where domestic supports, dumping and export subsidies are prevalent. The negative impact of these practices hurt trade, bring about price distortions and hurt the competitiveness of goods in developing countries. Turning to the international financial system and development, he said he agreed with the Secretary-General’s report that reform of the governance of the international financial institutions is needed, in line with the Istanbul Principles that aim to give emerging and developing countries a greater voice and representation.
TONY OWEKE (Kenya), aligning himself with the Group of 77 and the African Group, stated that developing countries are experiencing a vicious cycle of depending on costly loans to finance Government budgets, used to assuage the impacts of the COVID-19 pandemic, and then having to engage in fiscal consolidation to service debt to avoid credit downgrades. This, in turn, impacts long term economic growth and necessitates further borrowing. Pointing out that the monetary tightening by advanced economies increases the cost of debt servicing for developing countries, he stressed: “the situation of unsustainable external debt that we currently face is not just emblematic of an insufficient international debt architecture, but a wider international financial system.”
NELLY BANAKEN ELEL (Cameroon), aligning herself with the Group of 77, stressed that while international trade is a powerful driver of economic growth, protectionist measures have had a negative impact on the global value chains. Given that the burden of external debt serves as a brake on progress, it was important to come up with sustainable and global solutions for debt relief and debt cancellation, which need to be implemented without delay under the auspices of the United Nations, the World Bank and IMF. “If we are not inclined to pay a fair and equitable price for the fruit of the labours of African farmers, how can we even talk about leaving no one behind?” she asked the Committee.
RODOLFO RETA (Mexico) called for the multidimensional vulnerability index to be used regarding access to development funds for developing countries. The international financial system must adapt, turning towards financing climate action. No effort to achieve the Goals can succeed without the involvement of the private sector — an important partner alongside the public sector, he added. He further said that his country is developing a project to address the fight against money laundering and the fight against terrorism. Urging the international community to reform the international financial system, he noted he is open to the idea of organizing a Fourth International Conference on Financing for Development.
RAFEA ARIF (Norway), stressing that ODA must underpin national efforts towards attaining the Sustainable Development Goals and therefore must be “catalytical” by leveraging funds from many sources, stated that her country will continue to be among its top contributors measured by the share of gross national income. Underscoring that national efforts should be supported by an enabling multilateral framework, she noted that this is not the case when the international community allows structures that facilitate illicit financial flows to siphon resources away. Highlighting that financial secrecy and tax evasion erode trust in democracy, she pointed out that the international community must address the systemic weaknesses that allow such illicit flows to continue.
NOOSHIN TEYMOURPOUR (Iran), aligning himself with the Group of 77 and the Group of Friends in Defence of the Charter of the United Nations, and noting that the unilateral policies by “some significant players” cast doubt on the effectiveness of multilateral financing and trading systems, stressed that the international community should ensure that financing for development in no way “becomes hostage to coercive and restrictive agendas”. In the same vein, he added that the current trading system has become a target of harsh unilateral behaviour, putting the whole international system at risk. Recalling that commitments by developed States towards ODA have never been achieved in over five decades, he urged them to fulfil the unmet commitments to developing countries.
ALENA KAVALEUSKAYA (Belarus) stated that the economic and trade sanctions imposed on her country are at odds with the Charter of the United Nations and constitute a violation of international law. Noting that restrictive economic, financial and trading measures hinder sustainable economic development, especially in developing countries, she further stressed that unilateral coercive measures undermine their financial and debt sustainability as well as their trading potentials. In ensuring sustainable development, she added that assistance from bilateral donors and more ODA are needed, with due regard for national interests and the real needs of recipient countries.
THOMAS STELZER, International Anti-Corruption Academy, stressed the importance of combating illicit financial flows and returning stolen assets to eradicate poverty. He denounced the corruption of officials, the weakness of control structures and the vulnerability of international systems, especially in countries and territories that do not have effective policies against corruption or money laundering, while new technologies and alternative payment methods contribute to this scourge. The Academy assists States with training, research and outreach, he noted, further considering that the establishment of national and international frameworks is essential to protect the international financial systems. He recommended the creation of a coordination mechanism to ensure financial integrity.
RALF BREDEL, United Nations Industrial Development Organization (UNIDO), said that in a world confronted by interconnecting crises, investment, trade and industry can be motors of economic development only if they are fair and sustainable. He shared that UNIDO’s Global Quality and Standards Programme builds capacities in developing countries and provides them with global “goods” such as the Quality Infrastructure for Sustainable Development Index, the Standards Compliance Analytic Tool or the LabNet. Also working closely with Governments and companies to enhance industrial and trade capacities, he added, UNIDO takes part in investment promotion, training and capacity-building particularly for small and medium-sized enterprises, and initiatives aimed at upscaling youth and women entrepreneurship. He further shared that UNIDO also supports countries to enhance essential industrial infrastructure that can spur sustainable industrial development, including special economic zones and eco-industrial parks.
RIEFQAH JAPPIE, International Trade Centre (ITC), stated that for trade to positively affect development, it needs to be more inclusive, more environmentally sustainable, supported by an enabling business ecosystem and must be future focused. She stressed that inclusive trade supports micro-, small and medium-sized enterprises, the backbone of all economies globally, to be more competitive and integrated into regional and global value chains. As the joint agency of the United Nations and WTO, she added, ITC works on the ground to enhance the capacity of micro-, small and medium-sized enterprises in developing and the least developed countries to engage in international trade. She further shared that 80 per cent of ITC’s technical assistance is dedicated to least developed countries, landlocked countries, small island developing States and sub-Saharan Africa.