Private Sector Luncheon on Financing for Development
– As delivered –
Statement by H.E. Mr. Miroslav Lajčák, President of the 72nd Session of the UN General Assembly, at Private Sector Luncheon on Financing for Development
Excellencies, Deputy-Secretary-General, distinguished delegates, ladies and gentlemen,
I want to thank the International Chamber of Commerce and UNCTAD for organising this crucial event.
I am very glad to be here, to address you all this afternoon. I have very high expectations for your discussion today.
In 2015, the United Nations adopted 2030 Agenda for Sustainable Development which is universal and relates to every country. But we need financial resources to implement this masterplan.
And, in doing so, I will make three main points.
The first is that there is good – and bad – news to report.
I will start with the bad.
In simple terms, we do not have enough money to achieve the Sustainable Development Goals.
There is a vast gap between the plan we set for ourselves, and the resources we have to carry it out. And, to close this gap, we will need about $5-7 trillion dollars per year.
But, we are not even close to that. In developing countries, investment in SDG-related sectors falls about $2.5 trillion below what is needed.
The good news, however, is that the money is out there. We just need to unlock it.
And, the private sector holds the key. That is my second point today.
Public investment cannot power Sustainable development alone. We knew this – even before the ink had dried on the 2030 Agenda.
Just look at institutional investors. The pension funds, insurance companies, or investment funds of our global economy. In the 34 OECD countries alone, these entities currently have enough capital under their management to fund almost the entire 2030 Agenda.
So, like I said, the money is out there.
To get to it, however, we need to do two main things:
First, we must address the barriers which stop finance from flowing to the countries that need it the most.
Because, too much of our capital is staying where it has always been. It is gathering in pools, within familiar borders. We need to turn these pools into rivers. And we need to make them flow in new directions. In particular, over these borders, and into developing countries.
Currently, private investment makes up less than 20% of financial flows to Least Developed Countries. We need to see this figure increase. And the only way to do this is to identify the barriers – and to break them down.
But, secondly, we need to address a different kind of obstacle: the kind that is hampering private investment in the SDGs themselves. This obstacle is affecting developed and developing countries alike. And, it puts the entire 2030 Agenda at risk.
Yes, we have seen business champions of Sustainable Development emerge. Many of them are sitting around these tables today. And, their advocacy and investment are having tangible results on the ground.
This is very positive. But it is still the exception – not the norm.
Private finance accounts for too little SDG investment. For example, private investment in climate change represents only 20% of overall funding.
In simple terms, we do not have enough money to achieve the Sustainable Development Goals. […] The good news, however, is that the money is out there. We just need to unlock it.
Most of us, here, know that Sustainable Development is good for people. We know it is good for the planet. And we know that it can be good for business too. But we cannot take for granted that this is common knowledge.
Those of us who negotiated the SDGs; those of us who championed the SDGs – we have a job to do.
It is up to us to bring these goals to the market. We cannot wait for private investors to come knocking on the doors of this building. We need to do the knocking.
We need to show why the SDGs are a smart investment. We need to highlight the reciprocal gains that can be made. We need to stress that the SDGs can grow the economic pie, rather than biting into it. We need to reaffirm that the Sustainable Development can let us all win.
And that is why, for my third point, I want to call on us to talk more.
There have been many valuable discussions on SDG financing. In fact, I attended two events on this subject last month, at the World Economic Forum in Davos.
But, we need to talk more often. We need to talk more consistently. We need to talk to new actors – and not always to those who are eager to listen. We need to talk about our ideas. And we need to talk about their follow-up.
Talking is not enough. But the more we do it, the more we interact. And the more likely we are to act.
For this, the United Nations must lead the charge.
On 11 June, I will organise an event on SDG financing. It will bring together different actors. It will showcase best practices of business engagement in the 2030 Agenda. It will provide a space for new kinds of discussions. And it will incubate stronger partnerships.
This even must feed into other UN process dealing with financing. And, I will work closely with colleagues – in particular Deputy-Secretary-General Mohammed – to ensure that this happens.
And, so, I hope to welcome many of you back to this building, on June 11 for the event on financing for SDGs.
Until then, good luck in your discussions today, which will help to identify solutions to the challenges we are facing.
As I said, we have a job to do. SDGs are so important that we must deliver. Failure is not an option. I am certain that everyone in this room understands this and is taking this seriously.
Thank you all again.
