Excellencies,Distinguished delegates,Ladies and Gentlemen,
I have the honour to introduce the 2018 report of the Inter-agency Task Force on Financing for Development to this Forum.
We gather this week to assess progress in mobilizing financing for sustainable development. Since our last meeting one year ago, the global economy has improved, providing positive momentum for change. Most types of development financing flows increased, underpinned by the economic upturn.
Yet, as pointed out in the 2018 report of the Inter-agency Task Force on Financing for Development, global risks remain high.
Increases in interest rates and debt vulnerabilities, the adoption of inward-looking policies, or an escalation of geopolitical tensions could all derail progress. Key SDG priorities remain underfunded, and many of the poorest countries are left behind. Private investment in infrastructure has declined in each year since the SDGs were agreed to. The renewed increase in carbon emissions in 2017 is a stark reminder of the failure of the international community to sufficiently align investment with sustainable development.
This is the mixed picture that the Task Force is painting in its second substantive assessment of progress and implementation gaps in the Addis Ababa Action Agenda - “Financing for Development: Progress and Prospects, 2018”.
It is my great pleasure to officially launch this report today.
The report puts forward a set policy options that will help close implementation gaps and put the world on a more sustainable growth path. It also examines financing challenges to the SDGs under in-depth review in 2018 on water and sanitation, affordable and clean energy, sustainable cities and communities, sustainable production and consumption, and terrestrial ecosystems.
Before I highlight some of its main findings, allow me to briefly thank Task Force members for their excellent collaboration. As in previous years, the 2018 report builds on the expertise, analysis and data collected by almost 60-member agencies. The five major institutional stakeholders, the IMF, the World Bank, the WTO, UNCTAD and UNDP, again have played a leading role. All of them are with us today – and without their support, we could not have produced this report. Thank you.
Excellencies,
Four overarching messages have emerged from the Task Force’s analysis. They would help overcome structural impediments that continue to undermine sustainable development prospects.
First, financial sector incentives need to be long-term oriented and aligned with sustainable development. On the positive side, there is a growing interest in sustainable investments. However, short-term horizons of many investors remain a major obstacle. Risks such as those from climate change are still not incorporated into decision-making. The Task Force puts forward options to adjust incentives along the investment chain, and thus reorient global financial markets towards sustainability.
Second, policies, plans and project pipelines must be informed by integrated national financing strategies. Such strategies reach beyond the political cycle and overcome siloed thinking. Take the example of infrastructure, for which today’s investment decisions will lock in development paths until 2030 and beyond. The Task Force will continue its work on financing frameworks and strategies for its 2019 report. This analysis will look at both national actions and the global enabling environment that is needed to facilitate long-term and quality investments.
Third, public, private and blended financing all contribute to financing SDG investments. But the specific characteristics of a project and national policy priorities will determine which financing model is best suited, and which actors are best positioned to manage risks and provide services equitably and cost-effectively.
For example, private finance is most likely to be appropriate in sectors where projects generate sufficient returns, such as the energy sector, while investment in sanitation will be largely publicly financed since these investments benefit the society and are difficult to recoup solely from user fees.
Public finance remains essential. The Task Force underlines the importance of meeting commitments on ODA, particularly to vulnerable countries. Cooperation among developing countries and the scaling-up of South-South Cooperation can complement these efforts. The report also notes the urgency of making progress on tax cooperation and addressing illicit flows.Indeed, public policies and actions are at the heart of the 2030 Agenda for Sustainable Development. This is my fourth point. Public leadership is indispensable to set appropriate rules and overcome structural constraints that impede transformation toward a sustainable financial system.
Excellencies,
In this short statement, I am not able to reflect the full range of analysis and recommendations emanating from the Task Force’s work. I strongly encourage you to take the time and read the report carefully. Please also make use of its online annex, which provides data and analysis for each of the more than 100 clusters of commitments and actions in the Addis Agenda. I hope that they will serve as a sound analytical basis for your deliberations.
In our discussions this week, we will hear about the international community’s experiences in implementing the Addis Agenda. Ministers will share lessons learned. Major institutional stakeholders will report on their efforts to align programmes and projects with the Addis Agenda. The expert segment will allow all stakeholders, including private sector and civil society representatives, to identify challenges and implementation gaps.
I trust that in each of these sessions, you can build on the shared understanding of what has and has not been accomplished so far, drawing on the work of the Task Force.
Thank you.
I have the honour to introduce the 2018 report of the Inter-agency Task Force on Financing for Development to this Forum.
We gather this week to assess progress in mobilizing financing for sustainable development. Since our last meeting one year ago, the global economy has improved, providing positive momentum for change. Most types of development financing flows increased, underpinned by the economic upturn.
Yet, as pointed out in the 2018 report of the Inter-agency Task Force on Financing for Development, global risks remain high.
Increases in interest rates and debt vulnerabilities, the adoption of inward-looking policies, or an escalation of geopolitical tensions could all derail progress. Key SDG priorities remain underfunded, and many of the poorest countries are left behind. Private investment in infrastructure has declined in each year since the SDGs were agreed to. The renewed increase in carbon emissions in 2017 is a stark reminder of the failure of the international community to sufficiently align investment with sustainable development.
This is the mixed picture that the Task Force is painting in its second substantive assessment of progress and implementation gaps in the Addis Ababa Action Agenda - “Financing for Development: Progress and Prospects, 2018”.
It is my great pleasure to officially launch this report today.
The report puts forward a set policy options that will help close implementation gaps and put the world on a more sustainable growth path. It also examines financing challenges to the SDGs under in-depth review in 2018 on water and sanitation, affordable and clean energy, sustainable cities and communities, sustainable production and consumption, and terrestrial ecosystems.
Before I highlight some of its main findings, allow me to briefly thank Task Force members for their excellent collaboration. As in previous years, the 2018 report builds on the expertise, analysis and data collected by almost 60-member agencies. The five major institutional stakeholders, the IMF, the World Bank, the WTO, UNCTAD and UNDP, again have played a leading role. All of them are with us today – and without their support, we could not have produced this report. Thank you.
Excellencies,
Four overarching messages have emerged from the Task Force’s analysis. They would help overcome structural impediments that continue to undermine sustainable development prospects.
First, financial sector incentives need to be long-term oriented and aligned with sustainable development. On the positive side, there is a growing interest in sustainable investments. However, short-term horizons of many investors remain a major obstacle. Risks such as those from climate change are still not incorporated into decision-making. The Task Force puts forward options to adjust incentives along the investment chain, and thus reorient global financial markets towards sustainability.
Second, policies, plans and project pipelines must be informed by integrated national financing strategies. Such strategies reach beyond the political cycle and overcome siloed thinking. Take the example of infrastructure, for which today’s investment decisions will lock in development paths until 2030 and beyond. The Task Force will continue its work on financing frameworks and strategies for its 2019 report. This analysis will look at both national actions and the global enabling environment that is needed to facilitate long-term and quality investments.
Third, public, private and blended financing all contribute to financing SDG investments. But the specific characteristics of a project and national policy priorities will determine which financing model is best suited, and which actors are best positioned to manage risks and provide services equitably and cost-effectively.
For example, private finance is most likely to be appropriate in sectors where projects generate sufficient returns, such as the energy sector, while investment in sanitation will be largely publicly financed since these investments benefit the society and are difficult to recoup solely from user fees.
Public finance remains essential. The Task Force underlines the importance of meeting commitments on ODA, particularly to vulnerable countries. Cooperation among developing countries and the scaling-up of South-South Cooperation can complement these efforts. The report also notes the urgency of making progress on tax cooperation and addressing illicit flows.Indeed, public policies and actions are at the heart of the 2030 Agenda for Sustainable Development. This is my fourth point. Public leadership is indispensable to set appropriate rules and overcome structural constraints that impede transformation toward a sustainable financial system.
Excellencies,
In this short statement, I am not able to reflect the full range of analysis and recommendations emanating from the Task Force’s work. I strongly encourage you to take the time and read the report carefully. Please also make use of its online annex, which provides data and analysis for each of the more than 100 clusters of commitments and actions in the Addis Agenda. I hope that they will serve as a sound analytical basis for your deliberations.
In our discussions this week, we will hear about the international community’s experiences in implementing the Addis Agenda. Ministers will share lessons learned. Major institutional stakeholders will report on their efforts to align programmes and projects with the Addis Agenda. The expert segment will allow all stakeholders, including private sector and civil society representatives, to identify challenges and implementation gaps.
I trust that in each of these sessions, you can build on the shared understanding of what has and has not been accomplished so far, drawing on the work of the Task Force.
Thank you.
File date:
Monday, 四月 23, 2018