Development financing is suffocating, according to Guterres at the UN summit in Seville.
The Fourth International Conference on Financing for Development (FFD4) is currently underway in Seville, Spain, bringing together world leaders, international organizations, financial institutions, civil society, and private sector actors. The four-day summit, which kicked off on Monday and will continue until Thursday, is a critical global event aimed at addressing urgent financing challenges that threaten the achievement of the Sustainable Development Goals (SDGs) and assessing progress nearly a decade after key global agreements such as the 2030 Agenda, the Paris Agreement, and the 2015 Addis Ababa Action Agenda.
The primary objective of FFD4 is to review and reform the global financial architecture, promote a more equitable, inclusive, and transparent international economic order, and mobilize financing for sustainable development. The conference seeks to close the estimated USD 4 trillion annual financing gap needed to achieve the SDGs by 2030.
Key financial challenges addressed at FFD4 include shrinking Official Development Assistance (ODA), ongoing debt crises, the need for tax reform, combating illicit financial flows, and enhancing domestic resource mobilization. The decline in ODA, which saw a 7.1% drop between 2023 and 2024, threatens the financing available to developing countries for economic development and welfare. Meanwhile, the ongoing debt crisis and debt sustainability issues in many developing nations undermine their capacity to invest in SDGs and climate action.
In his opening speech, United Nations Secretary-General António Guterres lamented that development and international cooperation face strong headwinds. He emphasized the need for a reform of the global debt system, describing it as unjust and unsustainable. Spanish Prime Minister Pedro Sánchez, hosting the conference, argued that such gatherings matter because without financing, there are no development policies, and without development policies, there will be more inequality and conflicts.
The 'Seville Pledge', a final document of FFD4, aims to repair the global support system for development. It seeks to mobilize internal resources for priority areas such as healthcare and education, strengthen tax systems, and combat tax evasion. Sánchez stated that countries like Spain are dedicated to defending and promoting multilateralism, as the world needs strong UNs to tackle global challenges.
Guterres insisted that this is not a crisis of figures, but of people, citing families going hungry, children not receiving vaccines, and girls forced to leave school. Achieving the SDGs requires an investment of more than $4 trillion a year. The Secretary-General emphasized that financing is the engine of development and that it is drowning.
In conclusion, FFD4 is a pivotal moment for the international community to recommit and coordinate on financing sustainable development, tackle structural inequalities in global finance, and develop innovative and inclusive financial solutions amid shrinking cooperation and increasing global challenges. The conference underscores the urgency to address these challenges to ensure a more equitable, sustainable, and peaceful world.
- The 'Seville Pledge', finalized at the FFD4 conference, aims to boost internal funding for essential sectors like healthcare and education, enhance tax systems, and combat tax evasion, which are critical for achieving the SDGs.
- António Guterres, United Nations Secretary-General, highlighted the need for radical reform in the global debt system during his opening speech at the FFD4, asserting that the current system is unjust and unsustainable.
- Prime Minister Pedro Sánchez, hosting the FFD4, underscored the importance of these meetings, stating that financing is the driving force behind development policies, and its absence will lead to increased inequality and conflicts in the world. Furthermore, he emphasized that countries like Spain are dedicated to upholding and promoting multilateralism to tackle global challenges.
