Latest news with #ConferenceonFinancingforDevelopment
Straits Times
8 hours ago
- Business
- Straits Times
Explainer-What is the UN's development conference in Seville, and what can it achieve?
FILE PHOTO: World Bank President Ajay Banga attends the Milken Institute Global Conference 2025 in Beverly Hills, California, U.S., May 5, 2025. REUTERS/Mike Blake/File Photo FILE PHOTO: Nigeria's Amina Mohammed, Deputy Secretary-General of the United Nations, looks on during the official opening of the World Economic Forum on Africa in Cape Town, South Africa September 5, 2019. REUTERS/Sumaya Hisham/File Photo Explainer-What is the UN's development conference in Seville, and what can it achieve? LONDON - Global leaders will kick off the once-a-decade Conference on Financing for Development (FFD4) in Seville, Spain, on Monday, which aims to improve the world's aid and financial architecture. Ambitious reforms to everything from global tax to climate-focused funding are on the agenda. What is the event, who will attend, and what can it achieve? WHAT IS IT? The fourth such conference brings together political, financial and trade leaders to formulate a coherent approach to issues bedevilling global development - from aid to trade to debt. Leaders will formally adopt a 38-page document - dubbed the "Seville Commitment" - which was painstakingly negotiated and agreed prior to the event. It will be a blueprint for development financing for the coming decade, but it is a political commitment, rather than a legally binding agreement. The first FFD's "Monterrey Consensus" in 2002 produced targets for rich countries to spend 0.7% of gross national product on official development assistance and supported the Heavily Indebted Poor Countries Initiative, which eventually yielded billions in debt relief. The last FFD, in Addis Ababa in 2015, produced the 17 sustainable development goals that have guided multilateral funding for the past decade, and focused attention on strengthening taxation and stemming illicit financial flows. This year's backdrop is particularly challenging, with widespread aid cuts across the rich world - and climate change scepticism from U.S. President Donald Trump. WHAT ARE THIS YEAR'S OBJECTIVES? The Seville Commitment focuses on reforms to help poor nations adapt to climate crises, such as debt swaps, natural disasters debt pause clauses and an exploration of "global solidarity levies", which could tax highly polluting activities - or the super-rich - to finance sustainable development. It also targets progress towards better debt restructuring frameworks and innovations to boost funding, such as multilateral development banks' efforts to leverage special drawing rights. Leaders will also launch the Seville Platform for Action, which would form alliances to expedite concrete progress on the goals. WHO WILL BE THERE? UN Deputy Secretary-General Amina Mohammed said on Wednesday that more than 70 heads of state and government would attend. They include French President Emmanuel Macron, South African President Cyril Ramaphosa - this year's G20 chair - and sustainable finance rock stars such as Barbados Prime Minister Mia Mottley. World Bank President Ajay Banga is expected, along with development bank chiefs, the Gates Foundation and other campaign groups. Notably absent, however, is the United States, which withdrew during negotiations after it tried, unsuccessfully, to strip climate, sustainability and gender equality from the Seville Commitment. WHAT IMPACT COULD IT HAVE? The U.S. absence, and continued discord over the approach to certain other issues, such as debt, could hobble the event's impact. Trump's opposition to goals such as global tax rule changes could make success on that subject tougher. Meanwhile, disagreements between African leaders and key lending nations, such as China, over a debt convention also bedevil substantive progress. But sources said the event could be more successful without U.S. attendees trying to water down objectives, and there is a strong consensus that the world must take urgent action on issues such as climate adaptation funding. WHAT IS THE BACKDROP? The U.N. pegs the global financing gap for sustainable development at a whopping $4 trillion. Multilateral lenders are working to boost funding - but the cash they have been able to mobilise thus far is in the hundreds of billions, not trillions. At the same time, the average interest costs for developing countries as a share of tax revenues nearly doubled since 2014. China's lending to Africa has turned net negative as loan repayments come due, and an estimated 3.3 billion people - and more than half of Africans - live in countries that spend more on debt than health. REUTERS Join ST's Telegram channel and get the latest breaking news delivered to you.
Reuters
8 hours ago
- Business
- Reuters
Explainer: What is the UN's development conference in Seville, and what can it achieve?
LONDON, June 26 (Reuters) - Global leaders will kick off the once-a-decade Conference on Financing for Development (FFD4) in Seville, Spain, on Monday, which aims to improve the world's aid and financial architecture. Ambitious reforms to everything from global tax to climate-focused funding are on the agenda. What is the event, who will attend, and what can it achieve? The fourth such conference brings together political, financial and trade leaders to formulate a coherent approach to issues bedevilling global development - from aid to trade to debt. Leaders will formally adopt a 38-page document, opens new tab - dubbed the "Seville Commitment" - which was painstakingly negotiated and agreed prior to the event. It will be a blueprint for development financing for the coming decade, but it is a political commitment, rather than a legally binding agreement. The first FFD's "Monterrey Consensus" in 2002 produced targets for rich countries to spend 0.7% of gross national product on official development assistance and supported the Heavily Indebted Poor Countries Initiative, which eventually yielded billions in debt relief. The last FFD, in Addis Ababa in 2015, produced the 17 sustainable development goals that have guided multilateral funding for the past decade, and focused attention on strengthening taxation and stemming illicit financial flows. This year's backdrop is particularly challenging, with widespread aid cuts across the rich world - and climate change scepticism from U.S. President Donald Trump. The Seville Commitment focuses on reforms to help poor nations adapt to climate crises, such as debt swaps, natural disasters debt pause clauses and an exploration of "global solidarity levies", which could tax highly polluting activities - or the super-rich - to finance sustainable development. It also targets progress towards better debt restructuring frameworks and innovations to boost funding, such as multilateral development banks' efforts to leverage special drawing rights. Leaders will also launch the Seville Platform for Action, which would form alliances to expedite concrete progress on the goals. UN Deputy Secretary-General Amina Mohammed said on Wednesday that more than 70 heads of state and government would attend. They include French President Emmanuel Macron, South African President Cyril Ramaphosa - this year's G20 chair - and sustainable finance rock stars such as Barbados Prime Minister Mia Mottley. World Bank President Ajay Banga is expected, along with development bank chiefs, the Gates Foundation and other campaign groups. Notably absent, however, is the United States, which withdrew during negotiations, opens new tab after it tried, unsuccessfully, to strip climate, sustainability and gender equality from the Seville Commitment. The U.S. absence, and continued discord over the approach to certain other issues, such as debt, could hobble the event's impact. Trump's opposition to goals such as global tax rule changes could make success on that subject tougher. Meanwhile, disagreements between African leaders and key lending nations, such as China, over a debt convention also bedevil substantive progress. But sources said the event could be more successful without U.S. attendees trying to water down objectives, and there is a strong consensus that the world must take urgent action on issues such as climate adaptation funding. The U.N. pegs the global financing gap for sustainable development at a whopping $4 trillion. Multilateral lenders are working to boost funding - but the cash they have been able to mobilise thus far is in the hundreds of billions, not trillions. At the same time, the average interest costs for developing countries as a share of tax revenues nearly doubled since 2014. China's lending to Africa has turned net negative as loan repayments come due, and an estimated 3.3 billion people - and more than half of Africans - live in countries that spend more on debt than health.
Scoop
7 days ago
- Business
- Scoop
Development Is ‘The First Line Of Defense Against Conflict,' Guterres Tells Security Council
19 June 2025 Ambassadors met to debate how poverty, inequality, and underdevelopment are fuelling conflict and instability, at a time when hostilities are increasing and demand for humanitarian aid is rising as resources dwindle. Every dollar spent on prevention could save up to $103 in conflict-related costs, according to the International Monetary Fund (IMF). Sustainable development critical Conflicts are proliferating and lasting longer, said Mr. Guterres. At the same time the global economy is slowing and trade tensions are rising, as aid budgets are being slashed while military spending soars. He warned that if current trends continue, two thirds of the world's poor will live in conflict-affected or fragile countries by the end of this decade. 'The message is clear,' he said. 'The farther a country is from sustainable and inclusive development, the closer it is to instability, and even conflict.' Give peace a (fighting) chance The Secretary-General highlighted how the UN has worked to advance the three pillars of peace, development and human rights. These efforts began with its establishment 80 years ago and continue today, 'guided by the simple principle that prevention is the best cure for instability and conflict, and there is no better preventive measure than investing in development,' he said. 'Development gives peace a fighting chance. It's the first line of defence against conflict. But right now, we're losing ground,' he said, noting that 'the engine of development is sputtering.' World falling short Currently, two-thirds of the targets under the Sustainable Development Goals (SDGs) are lagging 10 years after adoption. 'The world is falling short by over $4 trillion annually in the resources developing countries need to deliver on these promises by 2030,' he added. Furthermore, 'developing countries are being battered and bruised by limited fiscal space, crushing debt burdens and skyrocketing prices.' Fix the 'engine' The Secretary-General pointed to the fourth Conference on Financing for Development, which begins next week in Spain, as an important moment 'to fix and strengthen this essential engine.' He called for renewed commitments towards securing public and private finance for the areas of greatest need, providing urgent relief for debt-laden countries, and reforming the outdated global financial architecture. The Council debate 'could not be more prescient,' said Kanni Wignaraja, the UN Development Programme's (UNDP) Assistant Secretary-General and Regional Director for Asia and the Pacific. Break the cycle Global human development has stalled just as violent conflicts have surged to levels not seen in eight decades, she said, before presenting three priorities for investment to help break the cycle, including protecting household economies. 'In fragile settings, where peace and security have been shattered, development that goes directly to the local level becomes the first line of peoples' defence and survival. And their hope for recovery,' she said. 'From these local economies - where livelihoods are restored, water and electricity can flow again, women's businesses in particular reopen, farmers can trade food, and there is basic finance to allow markets to stay afloat – from this, comes the resources to build back broken capabilities and resilience.' Address systemic imbalances The Chairperson of the African Union (AU) Commission, Mahmoud Youssouf Ali, recalled how the continent loses billions of dollars annually to conflict, which could be channeled into schools, hospitals, infrastructure and innovation. He said the international community must also acknowledge that poverty and underdevelopment 'are not confined within national borders" but are global challenges that require global response. 'If we are to uphold international peace and security, we must address the systemic imbalances – economic, political, and institutional – that continue to fuel deprivation, exclusion, and instability across regions,' he said. In this regard, the AU called for enhanced support to African-led peace operations, particularly those deployed in regions where poverty and underdevelopment are deeply entrenched. Collective action required The debate was convened by Guyana, which holds the rotating Council presidency this month. The country's Foreign Minister, Hugh Todd, remarked that with the world 'at a critical juncture where the interlinkages between peace, security and development have never been more pronounced,' collective and decisive action is required. He cautioned against 'prioritizing only political solutions in conflicts where poverty and underdevelopment feature prominently,' as creating conditions for socio-economic stability and well-being are also critical for peace. Mr. Todd urged countries to address issues such as lack of access to education, underemployment, exclusion, and greater participation of women and youth. 'Currently, the global youth population is the highest in history, with most young people concentrated in developing countries,' he said. 'For us to harness their full potential, they must be given adequate economic opportunities and be involved in decision making on peace and security.'
