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Scoop
7 hours ago
- Business
- Scoop
Hope Renewed For Keeping The Promise Of The SDGs As World Leaders Head To Sevilla For The FFD4
4th International Conference on Financing for Development, June 30-July 3 New York, 25 June 2025 – Amid mounting debt burdens and declining investment, to reduced aid and growing trade barriers, world leaders will gather in Sevilla next week for the Fourth International Conference on Financing for Development (FFD4). Access to food, health, education and water provides communities around the world a path out of poverty. But billions of people live in countries that pay more in interest on debt than on health or education. Against this backdrop, the high-level gathering marks a pivotal moment for the international community to reaffirm that the ambition and commitments made to sustainable development in the landmark 2015 Addis Ababa Action Agenda, remain strong; that international cooperation is delivering progress and action; and that the promise of the Sustainable Development Goals (SDGs) endures. Speaking at a press briefing today, UN Deputy Secretary-General Amina Mohammed stressed the need for immediate action, 'A decade after world leaders embraced the 2030 Agenda and the Addis Ababa Action Agenda, we remain off course – the system is failing those it was meant to uplift. 'But Sevilla offers a chance to change course – to catalyze investment, address the debt and sustainable development crisis, and reform the rules of the system to put people's needs at the center,' she added. 'It sends a powerful message to the world that despite persistent headwinds, international cooperation is delivering progress and there is renewed hope in keeping alive the promise of the SDGs.' In his remarks at the press briefing, Ambassador Héctor Gómez Hernández, Permanent Representative of Spain to the United Nations highlighted, 'This conference is an appeal to action and we have the extraordinary opportunity to send a very strong message to defend the international community's commitment to multilateralism.' In Sevilla, the global community will formally agree to a range of actions that advance the financing for development agenda. To unlock investment, member states will double support for mobilizing domestic resources, triple lending by Multilateral Development Banks, and remove constraints to private capital in frontier markets. To address the debt crisis, new initiatives will be launched to scale up debt swaps and debt pause clauses, and a borrowers' forum will be established to share experience and coordinate approaches. To create a fairer financial system, member states will advance efforts to give developing countries greater voice in decision-making and call for a review of the role of Special Drawing Rights that assist countries in emergencies. Co-facilitator of the negotiation process, Ambassador Chola Milambo, Permanent Representative of Zambia to the United Nations noted that the negotiated outcome document sent a message of hope to the world, 'That we can tackle the financial challenges that stand in the way of the SDGs and that multilateralism can still work.' From Sevilla to the upcoming G20 Summit in Johannesburg, momentum is building to deliver solutions across debt, trade, financing and investment in support of the 2030 Agenda. About FFD4 The Fourth International Conference on Financing for Development (FFD4), to take place in Sevilla, Spain, from 30 June to 3 July 2025, will bring together world leaders to advance solutions to financing challenges threatening the achievement of sustainable development. Governments, international organizations, financial institutions, businesses and civil society will commit to financing our future through a renewed global framework for financing for development. The Conference is expected to adopt the Compromiso de Sevilla, an intergovernmentally negotiated outcome, which was approved for adoption by consensus at the Fourth Preparatory Committee Meeting for FFD4 (17 June 2025). The Conference will mark the beginning of implementation of the outcome document, signaling a new phase of collective action on financing for development. Coalitions of countries and diverse stakeholders will announce ambitious commitments and solutions under the Sevilla Platform for Action that will operationalize the renewed financing framework and move from dialogue to delivery.
Straits Times
2 days ago
- Business
- Straits Times
Explainer-What is the UN's development conference in Seville, and what can it achieve?
FILE PHOTO: World Bank President Ajay Banga attends the Milken Institute Global Conference 2025 in Beverly Hills, California, U.S., May 5, 2025. REUTERS/Mike Blake/File Photo FILE PHOTO: Nigeria's Amina Mohammed, Deputy Secretary-General of the United Nations, looks on during the official opening of the World Economic Forum on Africa in Cape Town, South Africa September 5, 2019. REUTERS/Sumaya Hisham/File Photo Explainer-What is the UN's development conference in Seville, and what can it achieve? LONDON - Global leaders will kick off the once-a-decade Conference on Financing for Development (FFD4) in Seville, Spain, on Monday, which aims to improve the world's aid and financial architecture. Ambitious reforms to everything from global tax to climate-focused funding are on the agenda. What is the event, who will attend, and what can it achieve? WHAT IS IT? The fourth such conference brings together political, financial and trade leaders to formulate a coherent approach to issues bedevilling global development - from aid to trade to debt. Leaders will formally adopt a 38-page document - dubbed the "Seville Commitment" - which was painstakingly negotiated and agreed prior to the event. It will be a blueprint for development financing for the coming decade, but it is a political commitment, rather than a legally binding agreement. The first FFD's "Monterrey Consensus" in 2002 produced targets for rich countries to spend 0.7% of gross national product on official development assistance and supported the Heavily Indebted Poor Countries Initiative, which eventually yielded billions in debt relief. The last FFD, in Addis Ababa in 2015, produced the 17 sustainable development goals that have guided multilateral funding for the past decade, and focused attention on strengthening taxation and stemming illicit financial flows. This year's backdrop is particularly challenging, with widespread aid cuts across the rich world - and climate change scepticism from U.S. President Donald Trump. WHAT ARE THIS YEAR'S OBJECTIVES? The Seville Commitment focuses on reforms to help poor nations adapt to climate crises, such as debt swaps, natural disasters debt pause clauses and an exploration of "global solidarity levies", which could tax highly polluting activities - or the super-rich - to finance sustainable development. It also targets progress towards better debt restructuring frameworks and innovations to boost funding, such as multilateral development banks' efforts to leverage special drawing rights. Leaders will also launch the Seville Platform for Action, which would form alliances to expedite concrete progress on the goals. WHO WILL BE THERE? UN Deputy Secretary-General Amina Mohammed said on Wednesday that more than 70 heads of state and government would attend. They include French President Emmanuel Macron, South African President Cyril Ramaphosa - this year's G20 chair - and sustainable finance rock stars such as Barbados Prime Minister Mia Mottley. World Bank President Ajay Banga is expected, along with development bank chiefs, the Gates Foundation and other campaign groups. Notably absent, however, is the United States, which withdrew during negotiations after it tried, unsuccessfully, to strip climate, sustainability and gender equality from the Seville Commitment. WHAT IMPACT COULD IT HAVE? The U.S. absence, and continued discord over the approach to certain other issues, such as debt, could hobble the event's impact. Trump's opposition to goals such as global tax rule changes could make success on that subject tougher. Meanwhile, disagreements between African leaders and key lending nations, such as China, over a debt convention also bedevil substantive progress. But sources said the event could be more successful without U.S. attendees trying to water down objectives, and there is a strong consensus that the world must take urgent action on issues such as climate adaptation funding. WHAT IS THE BACKDROP? The U.N. pegs the global financing gap for sustainable development at a whopping $4 trillion. Multilateral lenders are working to boost funding - but the cash they have been able to mobilise thus far is in the hundreds of billions, not trillions. At the same time, the average interest costs for developing countries as a share of tax revenues nearly doubled since 2014. China's lending to Africa has turned net negative as loan repayments come due, and an estimated 3.3 billion people - and more than half of Africans - live in countries that spend more on debt than health. REUTERS Join ST's Telegram channel and get the latest breaking news delivered to you.
Reuters
2 days ago
- Business
- Reuters
Explainer: What is the UN's development conference in Seville, and what can it achieve?
LONDON, June 26 (Reuters) - Global leaders will kick off the once-a-decade Conference on Financing for Development (FFD4) in Seville, Spain, on Monday, which aims to improve the world's aid and financial architecture. Ambitious reforms to everything from global tax to climate-focused funding are on the agenda. What is the event, who will attend, and what can it achieve? The fourth such conference brings together political, financial and trade leaders to formulate a coherent approach to issues bedevilling global development - from aid to trade to debt. Leaders will formally adopt a 38-page document, opens new tab - dubbed the "Seville Commitment" - which was painstakingly negotiated and agreed prior to the event. It will be a blueprint for development financing for the coming decade, but it is a political commitment, rather than a legally binding agreement. The first FFD's "Monterrey Consensus" in 2002 produced targets for rich countries to spend 0.7% of gross national product on official development assistance and supported the Heavily Indebted Poor Countries Initiative, which eventually yielded billions in debt relief. The last FFD, in Addis Ababa in 2015, produced the 17 sustainable development goals that have guided multilateral funding for the past decade, and focused attention on strengthening taxation and stemming illicit financial flows. This year's backdrop is particularly challenging, with widespread aid cuts across the rich world - and climate change scepticism from U.S. President Donald Trump. The Seville Commitment focuses on reforms to help poor nations adapt to climate crises, such as debt swaps, natural disasters debt pause clauses and an exploration of "global solidarity levies", which could tax highly polluting activities - or the super-rich - to finance sustainable development. It also targets progress towards better debt restructuring frameworks and innovations to boost funding, such as multilateral development banks' efforts to leverage special drawing rights. Leaders will also launch the Seville Platform for Action, which would form alliances to expedite concrete progress on the goals. UN Deputy Secretary-General Amina Mohammed said on Wednesday that more than 70 heads of state and government would attend. They include French President Emmanuel Macron, South African President Cyril Ramaphosa - this year's G20 chair - and sustainable finance rock stars such as Barbados Prime Minister Mia Mottley. World Bank President Ajay Banga is expected, along with development bank chiefs, the Gates Foundation and other campaign groups. Notably absent, however, is the United States, which withdrew during negotiations, opens new tab after it tried, unsuccessfully, to strip climate, sustainability and gender equality from the Seville Commitment. The U.S. absence, and continued discord over the approach to certain other issues, such as debt, could hobble the event's impact. Trump's opposition to goals such as global tax rule changes could make success on that subject tougher. Meanwhile, disagreements between African leaders and key lending nations, such as China, over a debt convention also bedevil substantive progress. But sources said the event could be more successful without U.S. attendees trying to water down objectives, and there is a strong consensus that the world must take urgent action on issues such as climate adaptation funding. The U.N. pegs the global financing gap for sustainable development at a whopping $4 trillion. Multilateral lenders are working to boost funding - but the cash they have been able to mobilise thus far is in the hundreds of billions, not trillions. At the same time, the average interest costs for developing countries as a share of tax revenues nearly doubled since 2014. China's lending to Africa has turned net negative as loan repayments come due, and an estimated 3.3 billion people - and more than half of Africans - live in countries that spend more on debt than health.
Scoop
3 days ago
- Business
- Scoop
$1 Towards A Girl's Education = $3 For The Global Economy: That's How Development Works
Thursday, 26 June 2025, 6:33 am Every dollar invested in girls' education yields an average return of $2.80 – translating into billions in additional GDP. Similarly, each dollar spent on water and sanitation saves $4.30 in healthcare costs. Simple math, not miracles These aren't miracles – they're measurable outcomes. Maths doesn't recognize gender or infrastructure; it simply reflects the truth in numbers. And those numbers make a compelling case: helping countries with the least resources benefits everyone, including those with the most. Even a single dollar, strategically invested, can make a profound difference. For example, allocating just $1 per person annually to combat non-communicable diseases could prevent nearly seven million deaths by 2030. Likewise, every dollar spent on disaster risk reduction can save up to $15 in recovery costs. Yet despite such compelling evidence, development aid is often misunderstood – seen by some as mere charity, and by others as a vehicle for profiteering. Equity, not charity The latest UN Development Programme report on Afghan women entrepreneurs challenges the skeptics. It highlights that these women are not seeking charity – they're asking for a fair chance to succeed. Earning their own income gives them a measure of independence, which in turn strengthens the communities they live in. Against all odds, they are generating income, creating jobs, and building fuller, more enriching lives. Expanding access to public and private financing, guaranteeing loans, offering preferential terms in international markets, and reinforcing support networks can fuel business growth and foster a more prosperous future – whether in Afghanistan or Ecuador, or anywhere in between. FFD4 faces strong headwinds These examples – from education and health to entrepreneurship and disaster resilience – paint a clear, data-driven narrative: smart investments in development pay dividends for everyone. That message should be front and center at the upcoming Fourth UN Conference on Financing for Development which will be held in the Spanish city of Sevilla, from 30 June to 3 July. But the summit, known by its clunky acronym FFD4, faces stiff headwinds. Even as countries negotiating at UN Headquarters in New York agreed a week ago on a sweeping outcome document – set to be adopted at the close of the conference and intended to guide the future of global development aid – some nations are pulling back. Notably, the United States has announced it will not send a delegation to Sevilla at all. And even though there are some notable exceptions, including Spain, which has increased its development financing budget allocations by 12 per cent, the uncertain landscape ahead has led UN Secretary-General Antono Guterres to lament that 'global collaboration is being actively questioned.' This questioning is reflected in the $4 trillion annual deficit in development financing, as well as the abandonment of earlier commitments and delivery of aid by donors at what the Secretary-General has called 'a historic speed and scale.' Moreover, the Sustainable Development Goals, signed by all world leaders just 10 years ago, are a long way off track. What is at stake in Seville? Success in Sevilla 'will require other countries to fill the global leadership vacuum and demonstrate credible commitment to multilateral cooperation, which is essential for our survival,' states Jayati Ghosh, professor of economics at the University of Massachusetts, Amherst. Meaningful steps forward must include deep reforms of the international financial system. As it stands, it fails to meet the needs of developing countries while steadfastly protecting the interests of wealthier nations. Consider this: developing countries face interest rates at least twice as high as those paid by developed nations. And today, the average rates charged by private creditors to these countries have reached their highest levels in 15 years. What aid gives, debt takes away Developing countries spent a record $1.4 trillion on external debt service in 2023, the highest in 20 years. Meanwhile, in 2024, more than 1.1 billion people live in developing countries where external debt servicing accounts for more than 20 per cent of government revenue, and nearly 2.2 billion live in developing countries where the percentage is higher than 10 per cent. Interest payment on this debt hinders development by preventing investment in health infrastructure and education services, to cite just two examples. Debt restructuring is therefore essential, because much of the hope for development is lost in the give and take of aid and debt. Promoting investment in what works Eradicating hunger, advancing gender equality, protecting the environment, confronting climate change, and saving our oceans are not radical ideas. Despite claims from some highly ideological viewpoints that the Sustainable Development Goals represent an extremist agenda, they are, in fact, a shared baseline – an urgent set of priorities that humanity demands and that the leaders of 193 countries committed to in 2015. Despite the noise made by those who oppose development aid and multilateralism, they are a minority, says Spain's Secretary of State for International Cooperation. Ana Granados Galindo sees Seville as 'a beacon of global solidarity.' Meanwhile, as the world gears up for FFD4, mathematics, statistics, and Afghan women continue to work their common sense 'development magic'.
Scoop
19-06-2025
- Business
- Scoop
Ahead Of UN Summit, Countries Finalise Landmark ‘Compromiso De Sevilla'
On Tuesday, Member States at UN Headquarters endorsed the finalized outcome document, known as the Compromiso de Sevilla (the Seville Commitment), following months of intensive intergovernmental negotiations. It is intended as the cornerstone of a renewed global framework for financing sustainable development, particularly amid a widening $4 trillion annual financing gap faced by developing countries. A reinvigorated framework Co-facilitators of the outcome document – Mexico, Nepal, Zambia and Norway – hailed the agreement as an ambitious and balanced compromise that reflects a broad base of support across the UN membership. 'This draft reflects the dedication, perseverance, and constructive engagement of the entire membership,' said Ambassador Alicia Buenrostro Massieu, Deputy Permanent Representative of Mexico. 'Sevilla is not a new agenda. It is a strengthening of what already exists. It renews our commitment to the Addis Ababa Action Agenda and aligns fragmented efforts under a single, reinvigorated framework,' she added. Nepal's Ambassador Lok Bahadur Thapa called the outcome a 'historic opportunity' to confront urgent financing challenges. 'It recognizes the $4 trillion financing gap and launches an ambitious package of reforms and actions to close this gap with urgency,' he said, highlighting commitments to boost tax-to-GDP ratios and improve debt sustainability. United States withdrawal The agreement came despite sharp divisions on several contentious issues, culminating in the United States decision to exit the process entirely. 'Our commitment to international cooperation and long-term economic development remains steadfast,' said Jonathan Shrier, Acting US Representative to the Economic and Social Council. 'However, the United States regrets that the text before us today does not offer a path to consensus.' Mr. Shrier voiced his country's objection to proposals in the draft, which he said interfered with the governance of international financial institutions, introduced duplicative mechanisms, and failed to align with US priorities on trade, tax and innovation. He also opposed proposals calling for a tripling of multilateral development bank lending capacity and language on a UN framework convention on international tax cooperation. Renewal of trust Under-Secretary-General for Economic and Social Affairs Li Junhua welcomed the adoption of the document, calling it a clear demonstration that 'multilateralism works and delivers for all.' He praised Member States for their flexibility and political will in finalizing the agreement, despite challenges. 'The FFD4 conference presents a rare opportunity to prove that multilateralism can deliver tangible results. A successful and strong outcome would help to rebuild trust and confidence in the multilateral system by forging a renewed financing framework,' Mr. Li said. For the common good The Sevilla conference, to be held from 30 June to 3 July will mark the fourth major UN conference on financing for development, following Monterrey (2002), Doha (2008) and Addis Ababa (2015). It is expected to produce concrete commitments and guide international financial cooperation in the lead-up to and beyond the 2030 deadline of the Sustainable Development Goals (SDGs). 'We firmly believe that this outcome will respond to the major challenges we face today and deliver a real boost to sustainable development,' said Ambassador Thapa of Nepal.
