Latest news with #UNDevelopmentProgramme
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'.
Arab News
6 days ago
- Business
- Arab News
Leveraging African capital for African needs
Like many other multilateral forums, the upcoming Fourth International Conference on Financing for Development may well produce impressive declarations and laudable promises. But will lofty rhetoric be translated into concrete progress in lowering the structural and systemic barriers to financing development in Africa, including deteriorating debt sustainability, dwindling concessional finance and declining access to affordable capital? Africa's debt crisis did not emerge overnight. It is the result of years of chronic underfinancing, which forced countries to borrow for even the most basic investments. Between 2010 and 2021, the share of Africa's public external debt owed to private creditors rose from 30 percent to more than 44 percent. And private loans mean very high interest rates, which run in the 7 percent to 10 percent range, on average, with some countries, such as Ghana and Zambia, facing rates above 12 percent. The problem lies partly with credit ratings agencies, which tend to take a pro-cyclical approach, downgrading countries — and driving up borrowing costs — precisely when they are most vulnerable. Between 2021 and 2023, for example, Moody's downgraded Ethiopia, Ghana and Tunisia to 'deep junk' status, despite their fiscal consolidation efforts. Such decisions are not only opaque — they reflect external risk perceptions, rather than empirical criteria. According to the UN Development Programme, credit rating agencies' inflated risk perceptions cost the 16 African countries that issued bonds an estimated $74.5 billion by 2020. Global banking regulations, which were tightened in the wake of the 2008 global financial crisis, further constrain Africa's access to finance. The Basel III framework, introduced in 2011 under the auspices of the Bank for International Settlements, increased minimum capital-adequacy ratios, introduced a minimum leverage ratio and raised liquidity coverage requirements. Such changes diminished international lenders' appetite for risk — and, thus, their willingness to work with African borrowers. By 2020, many African countries' debt burden was so heavy that any unexpected crisis would plunge them into severe debt distress. And then the COVID-19 pandemic arrived. To be sure, the G20 devised interventions to help debt-distressed countries: the Debt Service Suspension Initiative and the Common Framework for Debt Treatments. But the results were mixed. When Chad, Ethiopia, Ghana and Zambia sought relief through the Common Framework, they faced protracted negotiations, uncertain timelines and tightened conditionality — all of which heightened perceived risk and deterred market reentry. Profit-shifting by multinationals to low- or no-tax jurisdictions, together with illicit financial flows, are an additional drain on African countries' resources. According to UN Trade and Development, Africa loses more than $88.6 billion to illicit financial flows each year — nearly equivalent to the continent's annual infrastructure financing gap. Rather than fight for incremental global reforms, Africa should focus on building robust regional and continental financing mechanisms. Carlos Lopes Meanwhile, the promise of official development assistance continues to unravel. According to the Organisation for Economic Co-operation and Development, total net assistance to Africa in 2024 was just $42 billion, representing a 1 percent decline in real terms from the previous year. At the same time, donor countries reported $27.8 billion in 'in-donor refugee costs' — up from $12.8 billion in 2021 — which is counted toward their official development assistance contributions. Today, high-income countries are cutting their aid budgets further, with the US the most extreme example. Many argue that the key to closing the development financing gap lies in strengthening African representation at institutions like the International Monetary Fund and broadening access to existing debt relief and development financing mechanisms. But such reforms can achieve only so much in a system that is structurally misaligned with Africa's needs. Rather than fight for incremental global reforms, Africa should focus on building robust regional and continental financing mechanisms that leverage African capital for African needs. The African Development Bank, with its clear development mandate and ability to catalyze broad-based action, can act as the cornerstone of such an African financing system. The African Export-Import Bank, with its trade finance instruments and growing influence, would also have a role to play, as would sovereign wealth funds, national development banks, pension funds and others. These institutions should pool resources, co-invest in strategic sectors and devise new instruments to mitigate risk and enhance credit provision. For example, African-based guarantee schemes that reduce the cost of capital for investments in infrastructure and the green transition would create incentives for lending to small and medium-size enterprises and support the establishment of shared standards — vital to facilitate regional financial integration. At the same time, African countries must boost revenue by strengthening tax administration, closing loopholes and reducing exemptions. Regional cooperation, together with new digital tools, can go a long way toward measuring companies' profits, tracking cross-border flows and identifying systemic tax evasion. Multilateral financial institutions still have an important role to play in delivering financing to Africa, but their approach must change fundamentally. For starters, far more lending should take place in local currencies, thereby reducing countries' vulnerability to exchange rate volatility. Longer repayment periods and respect for national policy priorities are also essential. Africa has a young population, vast natural resources and fast-growing digital networks. But it lacks the financial sovereignty to make the most of these and other assets. African leaders must stop lobbying for access to frameworks that do not serve their countries' interests and start asserting control over their own financial future. This means mobilizing capital, building institutions and defining their own criteria for development success. The Fourth International Conference on Financing for Development can help to kick-start this process, but only if participants recognize that closing the development financing gap is a political problem, not a technical one.
Bloomberg
20-06-2025
- Science
- Bloomberg
Trust in AI Strongest in China, Low-Income Nations, Study Shows
A United Nations study found a sharp global divide on attitudes toward artificial intelligence, with trust strongest in low-income countries and skepticism high in wealthier ones. More than 6 out of 10 people in developing nations said they have faith that AI systems serve the best interests of society, according to a UN Development Programme survey of 21 countries seen by Bloomberg News. In two-thirds of the countries surveyed, over half of respondents expressed some level of confidence that AI is being designed for good.
RNZ News
29-05-2025
- Business
- RNZ News
Concern about HIV cases in Fiji children after four deaths
A 3d rendered illustration of HIV. Photo: 123rf Fiji's Ministry of Health is raising concern about a growing number of HIV cases in children, after four young patients have died this year. Consultant Pediatrician Dr. Miriama Thaggard from Labasa Hospital said in one case, with a child quickly deteriorating, they were thinking maybe it's HIV. So they tested the baby, and the baby was positive. FBC reported that as of 27 May, there have been 19 new pediatric HIV cases reported this year. The health ministry is urging early testing. On 23 January, Fiji declared an outbreak of HIV . Dr Ratu Atonio Rabici Lalabalavu announced 1093 new HIV cases from the period of January to September 2024. In early December, the Fiji Medical Association called on the government to declare an HIV outbreak "as a matter of priority". As of mid-December, 19 under-fives were diagnosed with HIV in Fiji. Before the declaration, the UN Development Programme delivered 3000 antiretroviral drugs to Fiji to support the HIV response. The country's health ministry said in January that funding for HIV programmes in Fiji has dropped in recent years. The Fiji Times reported the permanent secretary of the Ministry of Health and Medical Services, Dr Jemesa Tudravu, saying financial resources for HIV programs have decreased from FJ$5 million (US$2.2m) in 2011 to FJ$1.2million (US$529,492) by 2016. "The government funding support reduced in 2012, and in 2013 it has slowly built up again in 2016 and 2018," he said. "However, the support from international funding has markedly reduced." A report released in mid-2024 showed that in 2023, 6.7 million people living with HIV were residing in Asia and the Pacific, making it the world's largest epidemic after eastern and southern Africa. The US president Donald Trump's plan to slash foreign aid has derailed efforts to contain growing HIV epidemics in the Asia Pacific and caused some programs to be suspended. Cameron Hill, a senior researcher with the Development Policy Centre at the Australian National University, said in March the Australian government has seen that the projects that are likely to be cut, that it is most concerned about, are TB and HIV programmes in PNG and Fiji. "So, what it has done in this budget is it has taken some of the money it was going to spend on global programmes, global health, global education programmes, and shifted that money across to help buttress health programmes, particularly in PNG, Fiji."
Scoop
28-05-2025
- Business
- Scoop
Sanctions Relief For Syria Offers ‘Powerful Message Of Hope,' Says UN Migration Agency
27 May 2025 After more than a decade of conflict and severe economic stagnation, lifting the punitive measures will encourage long-term recovery and peacebuilding in Syria, Amy Pope, IOM Director-General, said in a statement. 'The lifting of sanctions sends a powerful message of hope to millions of displaced Syrians, both within the country and across the region,' she said. $800 billion lost UN estimates suggest that the Syrian economy lost over $800 billion during the 14-year civil war. According to a UN Development Programme (UNDP) report, if the current annual growth rate continues, Syria's economy will not return to its pre-conflict gross domestic product (GDP) levels until 2080. The sanctions relief from the US, UK and EU – covering around $15 billion in restricted assets and trade measures – could unlock important investment opportunities for rebuilding key infrastructure, IOM said. Most of these sanctions were originally imposed during the Assad era and have long been blamed for Syria's hindering economic recovery. Alongside the sanctions relief, Saudi Arabia and Qatar pledged to pay $15.5 million of Syria's arrears to the World Bank. Together with Türkiye, they also offered to fund public salaries and support energy infrastructure. These changes reflect 'momentum from re-engagement and reconstruction,' IOM added. A country torn apart The Syrian conflict, which began March 2011 after pro-democracy protests against Bashar Al-Assad, lasted almost 14 years. During this time, tens of thousands of Syrians were killed and countless more disappeared. The fighting and insecurity also displaced more than 10 million civilians – within the country or as refugees outside its borders. Poverty rates tripled, affecting 90 per cent of the population, with 66 per cent living in extreme poverty. Since the end of the war in December 2024 with the overthrow of the Assad regime, half a million Syrian refugees have returned. A further 1.5 million internally displaced persons (IDPs) have also returned to their places of origin. They returned home amidst great hope for the future of Syria, but also severe economic projections. 'Hope must be matched with concrete support,' Director General Pope said. 'Syrians need not just the ability to return but the means to rebuild their lives in safety and dignity.' Moving from relief to resilience The UN estimates that over 16.5 million Syrians – roughly 70 per cent of the population – continue to require humanitarian assistance. But funding shortfalls have complicated aid efforts. Already in the last week of May, only 10 per cent of the estimated $2 billion needed between January and June to assist eight million Syrians has been received. Ms. Pope noted that it is important for the Syrian people and economy to begin moving towards longer-term solutions outside of humanitarian aid. 'While humanitarian assistance remains critical, IOM urges donors and development partners to expand their focus to medium- and long-term recovery. A transition from relief to resilience is not only necessary – it is urgent,' she said.
