Video Message
Colleagues,
Dear friends,
I¡¯m honoured to address this important dialogue on achieving a sustainable future for all.
Advancing policies and actions to overcome financing challenges is indeed an overarching priority.
The global context for achieving sustainable development could not be more challenging. Official Development Assistance is falling as aid budgets are being slashed. Unilateral actions and trade protectionism are on the rise. Many developing countries are burdened by high levels of debt. Rather than investing in a better future for their people, they spend more on debt servicing than on health and education.
At the same time, investment continues to elude countries and sectors that require financing the most.
This challenging moment underscores the paramount importance of the Fourth International Conference on Financing for Development, to be held in Spain. It¡¯s a lifeline ¨C a critical opportunity to reaffirm our collective commitment to multilateralism, and to address the financing challenges of developing countries.
The draft outcome document for FFD4 sets a high level of ambition -- a level that is necessary -- calling for transformative change to set the global economy on a new path.
Let me point to three concrete actions highlighted in the draft:
First, it calls for a strong SDG impact-focused investment push. This requires systemic reforms at both national and global levels, specifically to lower the cost of capital in many developing countries.
Countries should not be forced to divert resources from sustainable development towards servicing unsustainable debt levels.
That is why the draft calls for a debt facility to address the high cost of borrowing and initiate an intergovernmental process on debt at the UN.
The draft outcome also calls for enhanced access to concessional financing. A greater quantity in development financing must be accompanied by greater quality of flows.
Second, the draft stresses the need for a fundamental reform of the international development cooperation architecture, both in countries and globally.
Country leadership is critical, ensuring that international support can effectively serve nationally identified needs and priorities. To this end, we also need better coordination among all development partners, including Multilateral Development Banks, public development banks, the UN system and others. We need a cohesive, synergistic approach, not fragmented efforts.
Third, the draft underlines the need for deep reforms to the international financial architecture.
There is a compelling need for governance reform to strengthen the voice and representation of developing countries in decision-making and norm-setting.
Gaps in the global financial safety net need to be bridged to ensure that countries are more equipped to respond to crises. This includes a strengthened IMF and a new playbook for SDRs, to have more timely issuances and faster rechannelling to countries in need.
Dear Colleagues,
FfD4 presents a unique opportunity for us to commit to multilateral action on financing in the face of global uncertainty.
The Club de Madrid is a steadfast champion of multilateralism -- an important partner and plays an important role in ensuring an ambitious outcome in Sevilla.
Your expertise and commitment are vital to our shared success.
Thank you!