Maximizing Finance for Development

22 February 2018

– As delivered –

Statement by H.E. Mr. Miroslav Lajčák, President of the 72nd Session of the UN General Assembly, at Briefing on World Bank’s Maximizing Finance for Development

 

 

Excellencies, Ladies and Gentlemen, Good Afternoon

It is my great pleasure to address you on such an important topic. It is also one of my top priorities during my presidency.

The United Nations has demonstrated its ability to deliver landmark plans – such as the 2030 Agenda and the Paris Agreement. These plans define our post-2015 approach to global development.

But what is more important is that they must amount to more than words on paper. They have the potential to lift billions out of poverty, halt climate change and ensure a decent life for all on a sustainable planet.

None of this will be possible if we cannot mobilize resources to implement them.

This is why the World Bank’s new initiative “Maximizing Finance for Development” is so important. The World Bank Group is both a traditional partner and a pioneer in innovative financing solutions.

Allow me to make a few brief points today.

 

First, public finance alone is not enough. Estimates show that there is an annual investment gap of $2.5 trillion dollars in major SDG sectors in developing countries alone. At the same time, experts agree that the global stock of financial assets is enough to meet the financing needs of the 2030 Agenda.

Thus, the solution becomes clear. We must leverage private finance and break the bottlenecks that prevent it from flowing towards global development agendas.

But there are many hurdles to get over. This brings me to my second point: the main challenges to boosting private investment for SDGs.

Last week, I hosted a lunch on this topic – financing for development. I listened to the inputs from member states, UN entities, international organizations, including the World Bank Group, and the private sector.

It is worth recalling some points raised:

  • Governments need to put in place the right policies to attract private investment in the Sustainable Development Goals;
  • Combatting “short-termism” remains a challenge. Short-term thinking limits investments in long-term projects that are good for sustainable development, particularly in infrastructure; and
  • There is still some difficulty in translating entrepreneurial enthusiasm to invest in sustainable development into concrete action on the ground.

The United Nations has demonstrated its ability to deliver landmark plans – such as the 2030 Agenda and the Paris Agreement. […] But what is more important is that they must amount to more than words on paper. They have the potential to lift billions out of poverty, halt climate change and ensure a decent life for all on a sustainable planet.

MIROSLAV LAJČÁK

President of the UN General Assembly

The challenges are not insurmountable. Neither is there an easy, ready-made solution to them all. Therefore, we need to urgently promote dialogue between governments and private sector to build better understanding and come up with concrete solutions.

On the United Nations’ side, we need to include different stakeholders. Provide them with platforms to share experiences and good practices. Engage a much wider audience. And explore innovative solutions together.

My third point is about how I intend to contribute this very important conversation about financing the Sustainable Development Goals.

On June 11th I will convene a high-level event on financing for the Sustainable Development Goals. The event will feature a wide range of representatives from all relevant sectors. It will be a space for sharing success stories, tackling challenges that block financial flows and explore innovative and transformative solutions.

The outcome of this high-level event will include a pack of solutions and best practices, developed with major partners. I hope that member states will find this helpful and useful.

I welcome you all to take active part in the high-level event on financing for the SDGs.

Let me conclude by highlighting the importance of today’s briefing. It forms part of our collective and ongoing dialogue towards solutions.

I look forward to learning more about “Maximizing Finance for Development” and how this new approach can best serve member states.

Which country would not want development without increasing crippling public debt?

Or to save scarce public resources while encouraging sustainable private sector solutions?

All while promoting public-private partnerships.

This is definitely a “win-win” situation.

I wish the meeting success.

Thank you.

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