Latest news with #FourthInternationalConferenceonFinancingforDevelopment
Bangkok Post
9 hours ago
- Business
- Bangkok Post
UN conference seeks foreign aid rally as Trump cuts bite
MADRID - Spain will host a UN conference next week seeking fresh backing for development aid as swingeing cuts led by US President Donald Trump and global turmoil hinder progress on fighting poverty, hunger and climate change. French President Emmanuel Macron, South Africa's Cyril Ramaphosa and Daniel Noboa of Ecuador will headline the around 70 heads of state and government in the southern city of Seville from June 30 to July 3. But a US snub at the Fourth International Conference on Financing for Development underlines the challenges of corralling international support for the sector. Joining the leaders are UN chief Antonio Guterres, more than 4,000 representatives from businesses, civil society and financial institutions, including World Bank head Ajay Banga. Such development-focused gatherings are rare -- and the urgency is high as the world's wealthiest countries tighten their purse strings and development goals set for 2030 slip from reach. Guterres has estimated the funding gap for aid at $4 trillion per year. Trump's evisceration of funding for USAID -- by far the world's top foreign aid contributor -- has dealt a hammer blow to humanitarian campaigns. Britain, France, Germany, the Netherlands and Belgium are among the other rich nations that have announced recent aid cuts as economic and security priorities shift and national budgets are squeezed. From fighting AIDS in southern Africa to educating displaced Rohingya children in Bangladesh, the retreat is having an instant impact. The UN refugee agency has announced it will slash 3,500 jobs as funds dried up, affecting tens of millions of the world's most vulnerable citizens. International cooperation is already under increasing strain during devastating conflicts in the Middle East and Ukraine, while Trump's unpredictable tariff war plunges global trade into disarray. - Debt burden - Reforming international finance and alleviating the huge debt burden under which low-income countries sag are key points for discussion. The budgets of many developing nations are constrained by servicing debt, which surged after the Covid-19 pandemic, curbing critical investment in health, education and infrastructure. According to a recent report commissioned by the late Pope Francis and coordinated by Nobel laureate economist Joseph Stiglitz, 3.3 billion people live in countries that fork out more on interest payments than on health. Critics have singled out US-based bulwarks of the post-World War II international financial system, the World Bank and the International Monetary Fund, for reform. Seville represents "a unique opportunity to reform an international financial system that is outdated, dysfunctional and unfair", Guterres said. At a preparatory meeting at UN headquarters in New York in June, countries except the United States unanimously agreed a text to be adopted in Seville. The document reaffirms commitment to achieving the 2030 UN sustainable development goals on eliminating poverty, hunger and promoting gender equality. It focuses on reforming tax systems, notably by improving the Global South's representation within international financial institutions. The text also calls on development banks to triple their lending capacity, urges lenders to ensure predictable finance for essential social spending and for more cooperation against tax evasion. The United States said it opposed initiatives that encroach on national sovereignty, interfere with international financial institutions and include "sex-based preferences". - Lack of ambition? - While the European Union celebrated achieving a consensus, NGOs have criticised the commitment for lacking ambition. For Mariana Paoli, global advocacy lead at Christian Aid, the text "weakens key commitments on debt and fossil fuel subsidies -- despite urgent calls from the Global South". "Shielded by US obstructionism, the Global North continues to block reform. This isn't leadership -- it's denial." Previous failures by rich countries to keep their promises have eroded trust. After promising to deliver $100 billion of climate finance a year to poorer nations by 2020, they only hit the target in 2022. Acrimonious negotiations at last year's UN climate summit in Azerbaijan ended with rich countries pledging $300 billion in annual climate finance by 2035, decried as too low by activists and developing nations. Independent experts have estimated the needs upwards of $1 trillion per year. Spain will be the first developed country to host the UN development finance conference. The inaugural edition took place in Mexico in 2002, followed by Qatar in 2008 and Ethiopia in 2015.
Int'l Business Times
15 hours ago
- Business
- Int'l Business Times
UN Conference Seeks Foreign Aid Rally As Trump Cuts Bite
Spain will host a UN conference next week seeking fresh backing for development aid as swingeing cuts led by US President Donald Trump and global turmoil hinder progress on fighting poverty, hunger and climate change. French President Emmanuel Macron, South Africa's Cyril Ramaphosa and Daniel Noboa of Ecuador will headline the around 70 heads of state and government in the southern city of Seville from June 30 to July 3. But a US snub at the Fourth International Conference on Financing for Development underlines the challenges of corralling international support for the sector. Joining the leaders are UN chief Antonio Guterres, more than 4,000 representatives from businesses, civil society and financial institutions, including World Bank head Ajay Banga. Such development-focused gatherings are rare -- and the urgency is high as the world's wealthiest countries tighten their purse strings and development goals set for 2030 slip from reach. Guterres has estimated the funding gap for aid at $4 trillion per year. Trump's evisceration of funding for USAID -- by far the world's top foreign aid contributor -- has dealt a hammer blow to humanitarian campaigns. Britain, France, Germany, the Netherlands and Belgium are among the other rich nations that have announced recent aid cuts as economic and security priorities shift and national budgets are squeezed. From fighting AIDS in southern Africa to educating displaced Rohingya children in Bangladesh, the retreat is having an instant impact. The UN refugee agency has announced it will slash 3,500 jobs as funds dried up, affecting tens of millions of the world's most vulnerable citizens. International cooperation is already under increasing strain during devastating conflicts in the Middle East and Ukraine, while Trump's unpredictable tariff war plunges global trade into disarray. Reforming international finance and alleviating the huge debt burden under which low-income countries sag are key points for discussion. The budgets of many developing nations are constrained by servicing debt, which surged after the Covid-19 pandemic, curbing critical investment in health, education and infrastructure. According to a recent report commissioned by the late Pope Francis and coordinated by Nobel laureate economist Joseph Stiglitz, 3.3 billion people live in countries that fork out more on interest payments than on health. Critics have singled out US-based bulwarks of the post-World War II international financial system, the World Bank and the International Monetary Fund, for reform. Seville represents "a unique opportunity to reform an international financial system that is outdated, dysfunctional and unfair", Guterres said. At a preparatory meeting at UN headquarters in New York in June, countries except the United States unanimously agreed a text to be adopted in Seville. The document reaffirms commitment to achieving the 2030 UN sustainable development goals on eliminating poverty, hunger and promoting gender equality. It focuses on reforming tax systems, notably by improving the Global South's representation within international financial institutions. The text also calls on development banks to triple their lending capacity, urges lenders to ensure predictable finance for essential social spending and for more cooperation against tax evasion. The United States said it opposed initiatives that encroach on national sovereignty, interfere with international financial institutions and include "sex-based preferences". While the European Union celebrated achieving a consensus, NGOs have criticised the commitment for lacking ambition. For Mariana Paoli, global advocacy lead at Christian Aid, the text "weakens key commitments on debt and fossil fuel subsidies -- despite urgent calls from the Global South". "Shielded by US obstructionism, the Global North continues to block reform. This isn't leadership -- it's denial." Previous failures by rich countries to keep their promises have eroded trust. After promising to deliver $100 billion of climate finance a year to poorer nations by 2020, they only hit the target in 2022. Acrimonious negotiations at last year's UN climate summit in Azerbaijan ended with rich countries pledging $300 billion in annual climate finance by 2035, decried as too low by activists and developing nations. Independent experts have estimated the needs upwards of $1 trillion per year. Spain will be the first developed country to host the UN development finance conference. The inaugural edition took place in Mexico in 2002, followed by Qatar in 2008 and Ethiopia in 2015.
France 24
16 hours ago
- Business
- France 24
UN conference seeks foreign aid rally as Trump cuts bite
French President Emmanuel Macron, South Africa's Cyril Ramaphosa and Daniel Noboa of Ecuador will headline the around 70 heads of state and government in the southern city of Seville from June 30 to July 3. But a US snub at the Fourth International Conference on Financing for Development underlines the challenges of corralling international support for the sector. Joining the leaders are UN chief Antonio Guterres, more than 4,000 representatives from businesses, civil society and financial institutions, including World Bank head Ajay Banga. Such development-focused gatherings are rare -- and the urgency is high as the world's wealthiest countries tighten their purse strings and development goals set for 2030 slip from reach. Guterres has estimated the funding gap for aid at $4 trillion per year. Trump's evisceration of funding for USAID -- by far the world's top foreign aid contributor -- has dealt a hammer blow to humanitarian campaigns. Britain, France, Germany, the Netherlands and Belgium are among the other rich nations that have announced recent aid cuts as economic and security priorities shift and national budgets are squeezed. From fighting AIDS in southern Africa to educating displaced Rohingya children in Bangladesh, the retreat is having an instant impact. The UN refugee agency has announced it will slash 3,500 jobs as funds dried up, affecting tens of millions of the world's most vulnerable citizens. International cooperation is already under increasing strain during devastating conflicts in the Middle East and Ukraine, while Trump's unpredictable tariff war plunges global trade into disarray. Debt burden Reforming international finance and alleviating the huge debt burden under which low-income countries sag are key points for discussion. The budgets of many developing nations are constrained by servicing debt, which surged after the Covid-19 pandemic, curbing critical investment in health, education and infrastructure. According to a recent report commissioned by the late Pope Francis and coordinated by Nobel laureate economist Joseph Stiglitz, 3.3 billion people live in countries that fork out more on interest payments than on health. Critics have singled out US-based bulwarks of the post-World War II international financial system, the World Bank and the International Monetary Fund, for reform. Seville represents "a unique opportunity to reform an international financial system that is outdated, dysfunctional and unfair", Guterres said. At a preparatory meeting at UN headquarters in New York in June, countries except the United States unanimously agreed a text to be adopted in Seville. The document reaffirms commitment to achieving the 2030 UN sustainable development goals on eliminating poverty, hunger and promoting gender equality. It focuses on reforming tax systems, notably by improving the Global South's representation within international financial institutions. The text also calls on development banks to triple their lending capacity, urges lenders to ensure predictable finance for essential social spending and for more cooperation against tax evasion. The United States said it opposed initiatives that encroach on national sovereignty, interfere with international financial institutions and include "sex-based preferences". Lack of ambition? While the European Union celebrated achieving a consensus, NGOs have criticised the commitment for lacking ambition. For Mariana Paoli, global advocacy lead at Christian Aid, the text "weakens key commitments on debt and fossil fuel subsidies -- despite urgent calls from the Global South". "Shielded by US obstructionism, the Global North continues to block reform. This isn't leadership -- it's denial." Previous failures by rich countries to keep their promises have eroded trust. After promising to deliver $100 billion of climate finance a year to poorer nations by 2020, they only hit the target in 2022. Acrimonious negotiations at last year's UN climate summit in Azerbaijan ended with rich countries pledging $300 billion in annual climate finance by 2035, decried as too low by activists and developing nations. Independent experts have estimated the needs upwards of $1 trillion per year. Spain will be the first developed country to host the UN development finance conference. The inaugural edition took place in Mexico in 2002, followed by Qatar in 2008 and Ethiopia in 2015.
Euronews
a day ago
- Business
- Euronews
Two European countries in ‘red zone' of climate finance vulnerability
A new index has identified the countries most vulnerable to climate shocks. More than two billion people live in 'red zone' nations, where the risk of a major hazard or disaster is high and access to finance is dwindling, it reveals. Two-thirds of the 65 nations in this most at-risk list are in Africa, but it also includes two in Europe: Cyprus and Ukraine. Built by Columbia Climate School in the US with support from The Rockefeller Foundation, the Climate Finance (CliF) VulnerabilityIndex is intended to provide more comprehensive risk assessments, and ultimately help direct aid to those who need it most. How does debt increase climate vulnerability? 'Climate shocks are becoming more frequent and intense, yet many of the nations facing the highest threats are also heavily indebted, limiting their access to financial markets,' says Jeff Schlegelmilch, Associate Professor of Professional Practice of Climate and Director of the National Centre for Disaster Preparedness at the Columbia Climate School. Heatwaves, floods, cyclones, droughts and other extreme events are all on the rise as the climate heats up. Though predictions are rife with uncertainties, these climate disasters could result in more than 14.5 million deaths and $12.5 trillion (around €10.7 trillion) in global economic losses by 2050, according to the World Economic Forum. Meanwhile the United Nations Environment Programme (UNEP) estimates that the annual adaptation financing gap - the amount countries need to adapt to climate change - could be as much as $387 billion (€331 billion) a year. At the same time, high borrowing costs and limited access to finance keep many nations trapped in a cycle of climate disaster response and recovery, the researchers say, unable to really advance their climate mitigation and adaptation. 'Traditional aid models based on GDP per capita or income level don't capture the unique and growing risks of climate exposure along with limited access to capital to manage these risks,' adds Schlegelmilch. 'The CliF Vulnerability Index provides a more realistic picture of risk, including the access to financing to address climate vulnerabilities.' Eric Pelofsky, Vice President for Global Economic Recovery at The Rockefeller Foundation, says the index is an important conversation-starter, on the eve of the Fourth International Conference on Financing for Development in Seville next week. 'By using the CliF Vulnerability Index, donors and funders can prioritise support for countries that are potentially living one disaster away from crisis.' Why are Cyprus and Ukraine 'red zone' nations? The Red Zone is dominated by countries in sub-Saharan Africa, which comprise 43 (66 per cent) of the 65 countries in the danger area where climate vulnerability and financial weakness overlap. The index makes four forecasts per country: using a 2050 or 2080 timeline, as well as 'optimistic' and 'pessimistic' climate scenarios. 10 African nations appear in the bottom 10 countries across all four scenarios: Angola, Burundi, The Gambia, Guinea-Bissau, Eritrea, Lesotho, Malawi, South Sudan, Sudan, and Zambia. Saliem Fakir, Executive Director of The African Climate Foundation, says the index complements its own work advocating for 'more systemic approaches to adaptation in Africa for countries suffering by high debt distress.' Ukraine and Cyprus also appear in the red zone; Cyprus in the 2050 optimistic, 2050 pessimistic, and 2080 pessimistic scenarios. Ukraine in 2050 optimistic and 2080 optimistic scenarios. This is primarily due to non-climate hazards, which are nonetheless included in the data. Cyprus is prone to earthquakes, while conflict in Ukraine makes it vulnerable. These factors impact disaster management, climate adaptation systems and pressures on finance, a spokesperson for Columbia Climate School and Rockefeller Foundation explains. European nations are better represented among the list of nations best equipped to deal with climate shocks. Eight of these top 10 countries are OECD members, and half are in Europe: Denmark, Estonia, Norway, Switzerland, Sweden, as well as South Korea, Japan and the US.
Scoop
4 days ago
- Business
- Scoop
What Is Financing For Development?
22 June 2025 These are part of 17 goals agreed by nearly every country, called the Sustainable Development Goals (SDGs). The plan is to hit these targets by 2030. But we're falling behind. One big reason? There just isn't enough consistent funding to make real progress. That's why world leaders, economists, and other decision-makers are meeting at the end of this month in Sevilla, Spain, for a major event called the Fourth International Conference on Financing for Development. It's being called a 'once-in-a-decade opportunity' to rethink how the world pays for sustainable development. What is financing for development? At its core, financing for development works to answer a simple question – how does the world pay for a fairer and more balanced system of aid, trade and development? The answer from the global community has been to create a system which mobilizes the entire international financial architecture – taxes, subsidies, trade, financial and monetary policies — towards the development agenda. The architecture aspires to be as inclusive as possible, engaging a wide array of funding sources empowering countries to become more self-sufficient so their citizens can lead healthy, productive, prosperous and peaceful lives. Financing for development is basically about 'changing the way the system works to make it so that developing countries are able to…actually invest in their futures,' Shari Spiegel, Director of Financing for Sustainable Development at the UN's Department of Economic and Social Affairs (DESA), told UN News. Among these sources of financing are multilateral development banks that provide financial and technical support to developing countries. Revised international and national trade and tax policies also work to jump-start developing economies. And, official development assistance (ODA) creates a channel through which aid from developed countries can flow directly to developing countries. Why is financing for development important? From rising debt and falling investment to shrinking aid and missed development goals, the current system is failing the people it is meant to serve. People everywhere are paying the price: Debt is rising, investment is falling, and donor aid is shrinking. 600 million people could still be living in extreme poverty by 2030 if we don't change course and it will take many more decades to reach the SDGs. Today, 3.3 billion people live in countries that spend more on paying off debt than on health or education. Moreover, billions of people will continue to live in countries which must prioritize debt payments over development. That means less money for schools, hospitals, clean water, and jobs – the basics that people need to thrive. And for the people who face the consequences of the world's inaction, this is an unacceptable timeline. What systemic changes need to be made? With trade barriers growing and official development assistance decreasing annually, a business-as-usual approach to financing for development is unsustainable. The upcoming conference in Sevilla provides an opportunity to change course, to mobilize finance at scale and reform the rules of the system to put people's needs at the centre. The conference will bring together countries, civil society representatives and financial experts to discuss new approaches to financing for development. Crucially, this conference will also give developing countries a seat at the table, so their needs are addressed in international financial decision-making. What role does debt play? In the current financing system, developing countries continue to pay exorbitant amounts to service their debt while also facing borrowing costs which can be as much as two or four times higher than their developed counterparts. These costs tend to rise especially during or directly after times of crisis, creating a feedback loop through which developing countries cannot afford to develop the very structures which would enable them to pay these costs. 'Faced with sky-high debt burdens and cost of capital, developing countries have limited prospects of financing the sustainable development goals,' the UN Secretary-General, António Guterres said. What can be expected from the conference? The Secretary-General has said that it will take 'big ideas' and 'ambitious reforms' to get back on track to ending poverty, hunger and inequality. '[The conference] presents a unique opportunity to reform an international financial system that is outdated, dysfunctional and unfair,' UN chief António Guterres has said. Member States reached agreement on a draft which will launch an ambitious package of reforms and actions countries need to take to close the $4 trillion financing gap. The United States pulled out of the conference process on Tuesday during final negotiations over the outcome document, saying that it couldn't get on board with the draft. Reform will come in part from effectively mobilizing all stakeholders – private and public, formal and informal, developing and developed – and aligning their incentives and commitments towards a sustainable future. This includes emphasising multilateralism as the foundation of all development, increasing taxes which directs public funds towards international development goals, lowering the cost of capital for developing countries, restructuring existing debt and searching for even more innovative methods of finance. 'Sevilla is a moment in time. It's really the beginning, not the end of the process. So now the question is, how do we implement the commitments?' said Ms. Spiegel. Reforming a broken financing system is challenging but Ms. Spiegel is optimistic that multilateralism is up to the task.
