Upcoming Financing for Development Conference ‘Perhaps Last’ Chance for Real Commitments, Deputy Secretary-General Tells Summit
Following is UN Deputy Secretary-General Amina Mohammed’s message for the opening of the Finance in Common Summit, held in Cape Town, South Africa, today:
I thank Remy Rioux and Adama Mariko from Finance in Common’s leadership, and this event’s co-hosts, the Development Bank of Southern Africa and the Asian Infrastructure Investment Bank, for bringing us together.
The world is dangerously off track in achieving the Sustainable Development Goals (SDGs). While we have made progress on many aspects of our development agenda, we have also faced multiple setbacks, including the pandemic, new conflicts, slowing global growth and escalating borrowing costs.
Looking ahead, accelerating climate impacts, crushing debt burdens, and the spectre of escalating trade and geopolitical tensions are darkening the horizon. The only way out of this storm is financing.
But, right now, developing countries are unable to mobilize SDG investments in the face of debt overhangs, capital flight, climate risks and illicit financial flows that bleed their economies dry. Even official development assistance (ODA), which has long provided a minimum safety net, is now under threat.
The fourth International Conference on Financing for Development in Sevilla in July will be a pivotal moment to renew the global financing framework and redouble our collective efforts to achieve the 2030 Agenda [for Sustainable Development]. It presents a significant, and perhaps the last, opportunity before 2030 for real financial commitments to turn aspirations into actions.
Addressing the sustainable development crisis requires two essential changes — both of which require the work of the institutions here at the Financing in Common Summit.
The first change is a massive investment push. The now-adopted Pact for the Future called for a massive financial stimulus to help developing countries invest in sustainable development.
This push must be publicly led, but designed to leverage private investment and innovation. It must work to mobilize capital at low cost. And it must focus on transformative investments that can yield the greatest impact. Public development banks are integral to meeting this challenge.
Doing so requires good governance, careful risk management and effective, independent management. Development banks also need clear direction from policymakers to align their operations with the 2030 Agenda.
The second change is reforming the international financial architecture. This was another key commitment in the Pact for the Future. The existing architecture was crafted 80 years ago when many countries were still under colonial rule.
It’s high time for change. This system needs to be fit for purpose in today’s world, which means putting developing countries squarely in the driver’s seat. The elevation of public development banks is a critical part of this change.
National banks are best placed to source projects and work with Governments to develop project pipelines that align with country priorities. MDB [Multilateral development bank] financing, co-financing and working with national development banks can all combine to expand developing country ownership and improve the efficiency of the international system.
The fourth International Conference on Financing for Development is uniquely placed to support this agenda. The zero draft of the Conference’s outcome document already contains ambitious proposals related to public development banks. While Member States will ultimately decide how to proceed, I urge you to support them.
Across this work and more, your engagement with the Financing for Development process will help ensure the Conference has political traction and the best chance of success. I wish you a successful Summit this week and hope to see you again in Sevilla.