Co-Chairs,
Distinguished Ministers,
Excellencies,
Ladies and Gentlemen,
Welcome to the Ministerial Scene-Setter to kick off the Second Session of the Preparatory Committee of the Fourth International Conference on Financing for Development (FfD4).
We are at a crucial point in our efforts to achieve the Sustainable Development Goals. Financing remains key in overcoming the obstacles to the realization of these goals. It¡¯s time to fulfill the commitment to move from billions to trillions that are required to fully finance the 2030 Agenda.
Urgent actions and bold reforms across the financing landscape are essential for achieving success.
This Session is of critical importance to laying the foundations for an ambitious outcome of FfD4.
The elements paper presented by the Co-Facilitators is intended to inform the negotiation process. It has been developed based on extensive inputs from Member States, UN entities, international financial institutions, civil society, the private sector, academia and other stakeholders.
The paper offers actionable solutions to address persistent and emerging challenges in financing sustainable development.
The proposed commitments and policy recommendations in the paper merit your careful consideration and political guidance.
I wish to highlight the issues that require urgent actions given the growing challenges faced by developing countries. I therefore will not follow the structure of the elements paper.
Key proposals include:
First and foremost, growing debt distress. A three-pronged approach to dealing with debt and debt sustainability, aiming to reconcile responsible borrowing and lending principles, reduce borrowing costs through coordinated and institutionalized support, and explore new sovereign debt restructuring solutions to create the conditions necessary for scaling up SDG investments.
Second, fostering sustainable development ecosystems to support investment, and the development of domestic financial markets to better reorient private capital towards sustainable development. We need to deploy public capital to mobilize private finance with scale and speed.
Third, strengthen domestic resource mobilization by supporting developing countries in achieving a minimum tax-to-GDP ratio of 15%, and implementing innovative global solidarity levies. This offer pathways to enhance domestic fiscal capacity. However, the ability of countries to do DRM effectively would also require a breakthrough on making international cooperation on tax fully inclusive and more effective. We also need to take measures to curb illicit financial flows.
Fourth, Fulfilling and strengthening official development assistance (ODA) commitments. International development cooperation could be strengthened by enhancing local currency lending by multilateral development banks, improving coordination at the country level, building on country-owned national financing plans, and reforming the development cooperation architecture.
Finally, Governance reforms as a fundamental pillar to build a more equitable international financial system. The reforms also include policy reforms that put people and planet at the center of decisions rather than pure fiscal considerations. They should also lead to fast delivery of services to where these are badly and urgently needed.
These are but a few of the transformative ideas presented in the elements paper.
They reflect our collective ambition but require pragmatic, politically feasible pathways to implementation.
I must also emphasize that political feasibility does not mean that we ignore the urgency of needs of people. We should respond to the demands of the people who are struggling to make both ends meet. FFD4 is about making finance work for everyone everywhere.
Today, we turn to you, esteemed Ministers, for your guidance on the priorities outlined in the elements paper.
I urge you to respond very concretely to the proposals contained in the elements paper ¨C those you agree with, those you disagree with or want to see modified, and those areas that in your view are missing, especially where these fall short of responding to your citizens needs
Your inputs will guide discussions over the next four days and will help the Co-Facilitators to prepare a strong and balanced zero draft of the outcome document.
Now is the moment for us to formulate robust commitments in Seville that can mobilize the necessary resources and galvanize action.
Let us approach today¡¯s discussions with a spirit of partnership and a shared commitment to transformative progress. The stakes are high, but so too is our collective capacity to rise to this moment.
This is our opportunity to lay the foundation for a financing framework that is resilient, equitable, and fit for the challenges and opportunities of our time.
I look forward to your invaluable contributions.
Thank you!