Excellencies,Distinguished Delegates,Ladies and Gentlemen,
Mobilizing financing is a major challenge in many countries to deliver on the Sustainable Development Goals.
In 2015, Member States established, through the Addis Ababa Action Agenda, a global framework for financing sustainable development. This includes over 100 concrete policy actions.
The Addis Agenda underscores the importance of all financing flows: public, private, international and domestic. But financing is not just about the money. At its core, the Addis Agenda is about domestic and international policy frameworks to mobilize financing flows, and align them with economic, social and environmental priorities.
Yet, four years after the adoption of the SDGs and Addis Agenda, financing remains a key bottleneck to implementation.
Excellencies,
The Addis Agenda called for the establishment of the Inter-Agency Task Force on Financing for Development. The Task Force monitors progress and advises governments on these issues.
Each year, the Task Force produces the Financing for Sustainable Development Report, which brings together expertise from almost 60 agencies and international institutions. The Department of Economic and Social Affairs is the substantive editor and coordinator of the Task Force. We work closely with the 5 major institutional stakeholders of the Financing for Development process: the IMF, World Bank, WTO, UNCTAD and UNDP.
The 2019 Financing for Sustainable Development Report was published in April for the ECOSOC Forum on Financing for Development follow-up. It found that despite signs of progress, investments that are critical to achieving the SDGs, remain underfunded.
Interest in sustainable financing is growing. And sustainability considerations are increasingly guiding public budgets and development cooperation efforts.
But in light of the significant challenges we face, the sustainability transition in financial systems is not happening at the required scale, nor at the required pace. The report is an urgent call for action to accelerate this transition, both through national and multilateral action.
The report also puts special emphasis on the five SDGs under in-depth review at the High-Level Political Forum underway. Each of its chapters highlight financing challenges and solutions for the SDGs under in-depth review. The report brings them together in separate boxes. We are also distributing key messages on these SDGs in booklets today.
Distinguished Delegates,
I am not able to reflect the full range of analysis and recommendations in this short intervention. However, but let me briefly highlight some key messages on these SDGs.
On economic growth and decent work (SDG 8), recent data confirms that global growth, which has likely peaked at 3 per cent, is insufficient to meet the SDGs in many countries. In most least developed countries (LDCs), per capita GDP growth is significantly below levels needed to generate enough employment and eradicate extreme poverty. Approximately 265 million workers live in poverty despite being employed. Gender disparities in workforce participation and pay remain wide. The 2019 report provides recommendations on how to address these challenges. This includes setting incentives through fiscal systems, addressing informality of businesses, and creating an enabling business environment.
On reducing inequalities (SDG 10), data finds that income inequality within countries has increased over the past three decades in about half the countries. Most people in the world live in countries with increasing income inequality.
The report identifies multiple causes to these trends – including technological change benefiting higher-skilled workers and growing monopoly power, particularly in the digital economy. It finds that financial markets have a dual impact on inequality. Financial inclusion can have a positive impact, while excess financialization may contribute to greater inequality. Tackling inequality requires national actions, such as:
Last but not least, on SDG 16 – the Task-Force analysis stresses the role of effective, accountable and transparent institutions as a key element of implementing sustainable development, on both international and national levels. Nationally, effective institutional coordination mechanisms are needed. For example, through the adoption of integrated national financing frameworks. International norms and institutions need to be revamped to be fit for purpose. The current crisis in multilateralism may in fact provide an opportunity to do so – for example, reform of multilateral trading system can be used to fully align it with sustainable development.
Excellencies,
If we stay on the current path, we will not meet the Sustainable Development Goals. To succeed, we need to accelerate progress on each of the Addis Ababa Action Areas. The 2019 FSDR provides recommendations to this end. I hope this event will deepen our understanding on solutions for achieving sustainable development.
Before opening the floor to the panel discussion, allow me to briefly thank the members of the IATF for their collaboration and excellent work. I also thank our distinguished panellists for contributing to the discussion this afternoon. Let me also express a warm welcome to the representatives of the major institutional stakeholders and all participants in the room.
I look forward to today’s discussion!
Thank you.
Mobilizing financing is a major challenge in many countries to deliver on the Sustainable Development Goals.
In 2015, Member States established, through the Addis Ababa Action Agenda, a global framework for financing sustainable development. This includes over 100 concrete policy actions.
The Addis Agenda underscores the importance of all financing flows: public, private, international and domestic. But financing is not just about the money. At its core, the Addis Agenda is about domestic and international policy frameworks to mobilize financing flows, and align them with economic, social and environmental priorities.
Yet, four years after the adoption of the SDGs and Addis Agenda, financing remains a key bottleneck to implementation.
Excellencies,
The Addis Agenda called for the establishment of the Inter-Agency Task Force on Financing for Development. The Task Force monitors progress and advises governments on these issues.
Each year, the Task Force produces the Financing for Sustainable Development Report, which brings together expertise from almost 60 agencies and international institutions. The Department of Economic and Social Affairs is the substantive editor and coordinator of the Task Force. We work closely with the 5 major institutional stakeholders of the Financing for Development process: the IMF, World Bank, WTO, UNCTAD and UNDP.
The 2019 Financing for Sustainable Development Report was published in April for the ECOSOC Forum on Financing for Development follow-up. It found that despite signs of progress, investments that are critical to achieving the SDGs, remain underfunded.
Interest in sustainable financing is growing. And sustainability considerations are increasingly guiding public budgets and development cooperation efforts.
But in light of the significant challenges we face, the sustainability transition in financial systems is not happening at the required scale, nor at the required pace. The report is an urgent call for action to accelerate this transition, both through national and multilateral action.
The report also puts special emphasis on the five SDGs under in-depth review at the High-Level Political Forum underway. Each of its chapters highlight financing challenges and solutions for the SDGs under in-depth review. The report brings them together in separate boxes. We are also distributing key messages on these SDGs in booklets today.
Distinguished Delegates,
I am not able to reflect the full range of analysis and recommendations in this short intervention. However, but let me briefly highlight some key messages on these SDGs.
On economic growth and decent work (SDG 8), recent data confirms that global growth, which has likely peaked at 3 per cent, is insufficient to meet the SDGs in many countries. In most least developed countries (LDCs), per capita GDP growth is significantly below levels needed to generate enough employment and eradicate extreme poverty. Approximately 265 million workers live in poverty despite being employed. Gender disparities in workforce participation and pay remain wide. The 2019 report provides recommendations on how to address these challenges. This includes setting incentives through fiscal systems, addressing informality of businesses, and creating an enabling business environment.
On reducing inequalities (SDG 10), data finds that income inequality within countries has increased over the past three decades in about half the countries. Most people in the world live in countries with increasing income inequality.
The report identifies multiple causes to these trends – including technological change benefiting higher-skilled workers and growing monopoly power, particularly in the digital economy. It finds that financial markets have a dual impact on inequality. Financial inclusion can have a positive impact, while excess financialization may contribute to greater inequality. Tackling inequality requires national actions, such as:
- progressive tax systems,
- public spending on social protection and public services, including education, and
- anti-trust and other regulatory frameworks.
- It also requires increased international efforts, including through official development assistance and international tax cooperation.
- pricing externalities, such as carbon emissions,
- promoting more meaningful sustainability reporting by corporations, and
- encouraging disclosure of climate risks in the financial sector. Bold actions are required in this area as greenhouse gas emissions continue to increase, with dire consequences for communities worldwide.
Last but not least, on SDG 16 – the Task-Force analysis stresses the role of effective, accountable and transparent institutions as a key element of implementing sustainable development, on both international and national levels. Nationally, effective institutional coordination mechanisms are needed. For example, through the adoption of integrated national financing frameworks. International norms and institutions need to be revamped to be fit for purpose. The current crisis in multilateralism may in fact provide an opportunity to do so – for example, reform of multilateral trading system can be used to fully align it with sustainable development.
Excellencies,
If we stay on the current path, we will not meet the Sustainable Development Goals. To succeed, we need to accelerate progress on each of the Addis Ababa Action Areas. The 2019 FSDR provides recommendations to this end. I hope this event will deepen our understanding on solutions for achieving sustainable development.
Before opening the floor to the panel discussion, allow me to briefly thank the members of the IATF for their collaboration and excellent work. I also thank our distinguished panellists for contributing to the discussion this afternoon. Let me also express a warm welcome to the representatives of the major institutional stakeholders and all participants in the room.
I look forward to today’s discussion!
Thank you.
File date:
Friday, July 12, 2019