[Video Message]
Excellencies,
Ladies and gentlemen,
Thank you for inviting me to address this important event on sustainable development in Central Asia.
Your decision to focus your discussions on investment is both welcome and timely, as financing challenges lie at the heart of current global sustainable development prospects.
We are in a sustainable development crisis. A financing divide is fuelling a development divide, compounding weak post-pandemic economies, an escalating climate crisis and the threatening effect of growing geopolitical tensions. Only 17 per cent of measurable SDG targets are on track to be met.
Financing gaps are large and growing, at around USD 4 trillion annually.
The international financial architecture has failed to adequately protect developing countries in this moment of compounded crisis. They are left with little fiscal space - unable to unlock the resources needed to invest in sustainable development.
The Fourth International Conference on Financing for Development (FFD4), to be held in Spain next year, represents a unique opportunity to help close these gaps and reform the International Financial Architecture.
Let me highlight two areas where FFD4 could provide decisive progress.
First, we need to stress the potential of Public Development Banks (PDBs) to contribute to SDG financing. PDBs are uniquely positioned to play a leading role in this transformation by providing concessional finance where it is most needed. And they can leverage private finance to shift the whole financial system towards the SDGs. FFD4 will look at concrete options to strengthen the role of public development banks in the International Financial Architecture.
Development banks in your region are already taking steps in this direction. This is precisely the leadership we need!
Second, we need to recognise the importance of regional financing arrangements and regional development banks in the broader international financial architecture. FFD4 will consider ways to strengthen this regional aspect.
We need collaboration across all levels of financing - national, regional and global - to close the financing gaps and get the SDGs back on track.
I look forward to working with all of you to turn these ideas into action and achieve our common goals.
Thank you!