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Indian Express
10-07-2025
- Business
- Indian Express
Fourth International Conference on Financing for Development (FfD4): A must-know for UPSC exam
Take a look at the essential concepts, terms, quotes, or phenomena every day and brush up your knowledge. Here's your knowledge nugget on major outcomes of FfD4. (Relevance: Important conferences and summits are important from both the Prelims and Mains perspective of the UPSC exam.) Recently, the 4th International Conference on Financing for Development (FfD4) was held from 30 June – 3 July in Seville, Spain. A Sevilla Commitment was adopted ahead of the start of the Conference, which laid down a path to close the $4 trillion annual SDG financing gap in developing countries. However, the USA, one of the largest economies, skipped the Conference. This Conference was supported by the UN Department of Economic and Social Affairs (DESA), through its Financing for Sustainable Development Office, and the UN Economic and Social Council (ECOSOC). 1. Financing for development (FfD) is an ongoing process to align financial flows and policies with economic, social, and environmental priorities. In 1997, the Agenda for Development was adopted by the UN General Assembly (UNGA), which called for consideration of holding an international conference on FfD. 2. According to the Earth Negotiations Bulletin, a division of the International Institute for Sustainable Development (IISD), 'the first International Conference on Financing for Development took place in 2002 in Monterrey, Mexico. The resulting Monterrey Consensus 'resolved to address the challenges of financing for development' and 'to eradicate poverty, achieve sustained economic growth and promote sustainable development.' 3. In 2008, a follow-up conference was held in Doha, Qatar. Building on this, the third Conference on Financing for Development adopted the Addis Ababa Action Agenda in 2015. It included a policy framework to realign financial flows to implement the 2030 Agenda for Sustainable Agenda and its 17 Sustainable Development Goals (SDGs). Ten years after Addis Ababa, the FfD conference was held in Spain. Financing is the engine of development. And right now, this engine is sputtering. – United Nations Secretary-General Antonio Guterres statement at opening of 4th FfD4 4. Many countries face escalating debt burdens, declining investments, decreasing international aid, and increasing trade barriers. The Conference is seen as an opportunity to close the staggering $4 trillion annual financing gap, promoting development, bringing millions of people out of poverty, and helping achieve the UN's Sustainable Development Goals, which are currently lagging. 5. Last year, 3.3 billion people were living in countries that pay more interest on their debts than they spend on health or education, and the number will increase to 3.4 billion people this year, according to Grynspan. And developing countries will pay $947 billion to service debts this year, up from $847 billion last year. 1. Building on the 2015 Addis Ababa Action Agenda, the Sevilla Commitment reaffirms adherence to realizing sustainable development, including effectively implementing the 2030 Agenda for Sustainable Development and its 17 Sustainable Development Goals and upholding all principles enshrined in it. 2. With the approaching deadline of SDGs, the Sevilla Commitment charts a path on three fronts: catalyzing investment at scale for sustainable development, addressing the debt and development crisis, and reforming the international financial architecture. 3. Under the Sevilla Platform for Action, 'new financing mechanisms were announced to tackle unsustainable debt burdens, and additional initiatives aimed to enhance crisis response and climate resilience, expand access to social protection and support local and digital economies, among others,' according to the UN press release. 4. A Debt Swaps for Development Hub initiative led by Spain and the World Bank was launched. It aims to strengthen capacity and enhance collaboration to scale up debt swaps and lower debt service burdens. 5. Along with this, a Debt-for-Development Swap Programme by Italy that will convert 230 million Euros of debt obligations of African countries into investments in development projects and a Sevilla Forum on Debt to help countries learn from one another and coordinate their approaches in debt management and restructuring were announced. 6. Led by Brazil and Spain, an Effective Taxation of High-Net-Worth Individuals initiative was launched to ensure high-net-worth individuals pay their fair share. India had made an uncharacteristically strong criticism of the Baku agreement, calling the final agreed amount 'abysmally poor' and 'paltry'. It has been said that the lack of adequate finance was not just an abdication of responsibility by the developed countries, but also a major setback to global climate action. 1. A few days before the start of the FfD4, the World Bank published a Report titled 'Foreign Direct Investment in Retreat', pointing out that the Foreign Direct Investment (FDI) into developing countries had fallen to $435 billion in 2023, the lowest in nearly 20 years. It warns that rising trade and investment barriers pose a 'significant threat to global efforts to mobilise financing for development. 2. According to M. Ayhan Kose, the World Bank Group's Deputy Chief Economist, the sharp drop in FDI for developing countries 'should sound alarm bells'. Reversing the trend, Kose said, was not just an 'economic imperative' but also 'essential for job creation, sustained growth, and achieving broader development goals'. 3. According to the Report, the prolonged and widespread investment weakness in emerging market and developing economies (EMDEs) has contributed to a large backlog of unmet infrastructure needs. 4. Weak investment growth is undermining efforts to achieve key development goals, including tackling climate change and accelerating the energy transition, and reducing poverty and inequality. By some estimates, EMDEs need to invest at least an additional 1.4 percent of GDP through 2030 just to address climate change and the energy transition. 5. Among EMDEs, China has been the biggest receiver of FDI from 2012 to 2023, accounting for nearly one-third of these inflows. Brazil was second at 10 per cent and India third at 6 per cent, the World Bank said. 6. While data for the 2023 calendar year is the latest available at a global level, FDI into India as per Reserve Bank of India (RBI) data increased to $81.04 billion in 2024-25 from $71.28 billion in 2023-24. However, net FDI into India – which adjusts the gross FDI number by deducting the funds repatriated by foreign investors and the investments made by Indian entities abroad – fell to just $353 million in the last fiscal from $10.13 billion in 2023-24. Consider the following statements about the International Conference on Financing for Development: 1. The first International Conference on Financing for Development took place in Doha, Qatar. 2. The Sevilla Commitment was signed by the USA, UK, France, Germany, and Italy. 3. The Effective Taxation of High-Net-Worth Individuals initiative was launched by Brazil and Spain. Which of the following statements is/are incorrect? (a) 2 only (b) 1 and 2 only (c) 2 and 3 only (d) 1, 2, and 3 (Source: US skips global UN meeting aimed at raising trillions of dollars to combat poverty, 'Alarm bells' for developing nations as 2023 FDI lowest since 2005 – World Bank) Subscribe to our UPSC newsletter. 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Scoop
03-07-2025
- Business
- Scoop
With Sustainable Development Under Threat, Sevilla Summit Rekindles Hope And Unity
3 July 2025 'The human consequences of rising debt burdens, escalating trade tensions and steep cuts to official development assistance have been brought into sharp relief this week,' she told the closing session of the pivotal gathering, amid sizzling temperatures across southern Spain. Multilateralism at work But against that backdrop, the conference has delivered a strong response – a unifying outcome document focused on solutions that reaffirms the Addis Ababa commitments made a decade ago, which seeks to 'rekindle the sense of hope' through the Sustainable Development Goals (SDGs) and shows that multilateral cooperation still matters and still works, Ms. Mohammed said. She welcomed host nation Spain's commitment to help launch a new UN Sevilla Forum on Debt, calling it a crucial step in helping countries better manage and coordinate debt restructuring efforts. 'Sevilla will be remembered not as a landing zone, but as a launchpad for action, to improve livelihoods across the world,' said Carlos Cuerpo, host Spain's chief finance minister, at the closing press conference. ' Together, we have sent a strong message of commitment and trust in multilateralism that can yield tangible results to put sustainable development back on track.' Li Junhua, UN Under-Secretary-General for Economic and Social Affairs and Secretary-General of the Conference said the week had proved the UN is 'more than just a space for dialogue; it is a powerful platform for solutions that transform lives.' 'In Sevilla, we have demonstrated our collective will to confront the most urgent and complex financing challenges of our time,' the DESA chief underscored at the closing. Concrete plan of action Ms. Mohammed told the closing press conference delegates had made ' a serious and long overdue attempt to confront the debt crisis ' while aiming to close the massive financing gap for the 2030 Sustainable Development Goals (SDGs). She reiterated the three main action areas for the Sevilla Commitment: A major investment push to close the SDG financing gap Concrete steps to address unsustainable debt burdens A greater voice for developing countries in global financial decision-making Alongside this agreement, over 100 new initiatives were launched under the Sevilla Platform for Action. These include a global hub for debt swaps, a 'debt pause' alliance, and a solidarity levy on private jets and first-class flights to fund climate and development goals. ' This platform has sparked new partnerships, innovative solutions that will deliver real change in people's lives,' Ms. Mohammed said. 'They're not a substitute for broader funding commitments, but a sign that creative thinking is finally breaking through.' Acknowledging criticism from civil society groups about limited access to official discussions, she pledged to push for greater inclusion. ' We hear you,' she declared, adding that 'this trust needs to be earned.' Here's a summary of key commitments going forward from Sevilla: Tackling debt burdens: Spain and the World Bank will lead a Debt Swaps for Development Hub to scale up debt-for-development deals. Italy will convert €230 million in African debt into development investments. A Debt Pause Clause Alliance of countries and development banks will suspend debt payments during crises. The Sevilla Forum on Debt will help countries coordinate debt management and restructuring efforts. Mobilising investment: A Global Solidarity Levies coalition will tax private jets and premium flights to raise climate and SDG funds. The SCALED platform will expand blended finance, backed by public and private partners. FX EDGE and Delta will help scale up local currency lending through risk management tools. Brazil and Spain will lead work on fairer taxation of the wealthy. New technical assistance hubs will support project preparation and delivery. Strengthening financial systems: Country-led financing platforms will support national plans. The UK-Bridgetown coalition aims to expand disaster financing. At the International Business Forum, companies pledged to increase impact investment, with $10 billion in projects showcased.
Scoop
28-05-2025
- Politics
- Scoop
UN Aims To Transform Urgency Into Action At Nice Ocean Conference
27 May 2025 The third United Nations Ocean Conference (UNOC 3) from 9-13 June will bring together Heads of State, scientists, civil society and business leaders around a single goal: to halt the silent collapse of the planet's largest – and arguably most vital – ecosystem. The ocean is suffocating due to rising temperatures, rampant acidification, erosion of biodiversity, plastic invasion, predatory fishing. 'A state of emergency' ' Our planet's life support system is in a state of emergency,' said Li Junhua, head of the UN Department of Economic and Social Affairs (DESA) and the Secretary-General of the upcoming summit. He insisted that there is still time to change course. ' The future of the ocean is not predetermined. It will be shaped by the decisions and actions that we are making now,' Mr. Li said on Tuesday during a press briefing at UN Headquarters in New York. In the eyes of the senior official, UNOC 3 'will not be just another routine gathering.' 'We hope that it proves to be the pivotal opportunity to accelerate action and mobilize all stakeholders across the sectors and borders.' World-class conference More than 50 world leaders are expected on the Côte d'Azur, alongside 1,500 delegates from nearly 200 countries. The programme includes 10 plenary meetings, 10 thematic roundtables, a blue zone reserved for official delegations, and a series of parallel forums during five days of negotiations. For France, which is co-hosting the conference alongside Costa Rica, the challenge is clear: to make Nice a historic milestone. 'This is an emergency,' declared Jérôme Bonnafont, Permanent Representative of France to the UN, during the press conference. 'An ecological emergency: we are witnessing the deterioration of the quality of the oceans as an environment, as a reservoir of biodiversity, as a carbon sink.' France hopes to make the conference a turning point and the goal 'is to produce a Nice agreement that is pro-oceans, as the Paris Agreement 10 years ago now was for the climate.' This agreement will take the form of a Nice Action Plan for the Ocean, a 'concise action-oriented declaration,' according to Mr. Li, accompanied by renewed voluntary commitments. Three milestones Three events will prepare the ground for UNOC 3. The One Ocean Science Congress, from 4-6 June, will bring together several thousand researchers. The Summit on Ocean Rise and Coastal Resilience to be held the following day will explore responses to rising sea levels. Finally, the Blue Economy Finance Forum, on 7-8 June in Monaco, will mobilize investors and policymakers. For Costa Rican Ambassador Maritza Chan Valverde, there is no more time for procrastination. ' We're expecting concrete commitments with clear timelines, budgets and accountability mechanisms. What is different this time around, zero rhetoric, maximum results,' she said. 'Transform ambition into action' The conference's theme Accelerating Action and Mobilizing All Stakeholders to Conserve and Sustainably Use the Ocean will address several topics, ranging from sustainable fishing to marine pollution and the interactions between climate and biodiversity. ' This is our moment to transform ambition into action,' Mr. Li concluded, calling for governments, businesses, scientists, and civil society to come together in a common spirit. He also praised the 'visionary leadership' of France and Costa Rica, without whom this large-scale mobilization would not have been possible. A slogan promoted by Costa Rica seems to sum up the spirit of the summit: 'Five days. One ocean. One unique opportunity.'
Express Tribune
23-02-2025
- Business
- Express Tribune
The world is becoming smaller
Listen to article The world is becoming smaller but not in the literal meaning of the word "small". Countries around the globe are getting closer because of the ease with which they are now connected. Economists have called this the process of globalisation. There is easier flow of goods, commodities and finance among the countries around the world. Even people are able to cross international frontiers without many obstacles placed in their way. A recent report published by the United Nations Department of Economic and Social Affairs (DESA) provides indication of the extent mixing of populations has occurred. To quote from the UN report, in 2024, 3.7 per cent of people globally were international migrants, having increased from 2.9 per cent in 1990. The United States hosted more migrants than any other country in the world with 52.4 million people of foreign origin living in the country. American nationalists such as Donald Trump and Elon Musk call this the dilution of the country's blood. By whip they mean both the colour of the skin and the religion Americans follow. Germany was the second leading destination for international migrants, hosting 16.8 million in 2024, followed by Saudi Arabia (13.7 million), the UK (11.8 million), France (9.2 million), Spain (8.9 million), Canada (8.8 million), the UAE (2 million), Australia and Russia (7.6 million each) , Türkiye (7.1 million) and Italy (6.6 million). The UN report says just under half (48 per cent) of all international migrants were women and girls. In Europe and Northern America, as well as in Latin America and the Caribbean, women and girls comprised around half of all migrants and their share was largely unchanged between 1990 and 2024. The UN agency does not explain why so many women are migrating. It could be that they find it easier to make a living in the foreign lands to which they moved than in the countries from which they come. Most of the large migrant receiving countries are facing sharp declines in the rate of growth of population. Demographers have concluded that the replacement rate of 2.1 children per woman would keep the size of the population steady; anything more would mean increase in population, anything below would result in population decline. North America; Europe, including Russia; and China have below replacement rates of human fertility with the result that their populations are declining in size. Pakistan has one of the highest in the world, matching those of several countries in Africa. This is the reason why less than eighty years after the country became independent, its population has grown eight-fold, from 32 million to 240 million. The continent of Africa is going through a population explosion and in a decade are so more children will be born in Africa than in any other part of the world. There is population imbalance between Europe and Africa. Europe needs people while Africa has more people than it can accommodate. The result is whether Europe likes it or not, many Africans are climbing into rickety boats and crossing the narrow Mediterranean Sea. Not all boats are sea-worthy enough to make the crossing; any day quite literally they break under the weight of human beings loaded on them. Thousands of Africans have perished in attempting to cross the sea and get into Europe. Although Europe needs people to fill the gap created by the decline in its population for demographic reasons, the need is there, especially for those who are young and the continent of Africa has millions that it can't fully support. However the need, Africans' arrival in Europe is mostly unwelcome. Both skin colour and religion play important roles in the common hostility shown by most continental Europe towards migrants from Africa. Those arriving from Africa and landing on the shores of the countries on the northern side of the Mediterranean are back and follow the Islamic faith. Europeans want to remain white and Christian. Darkening of the continent and the arrival of Islam have caused considerable anguish in many parts of the continent. Italy is not the only European country in which migration has pushed the political system way to the right of the politics spectrum. It has elected a prime minister who is both against migration and against the entry of Islam into the continent. Germany has had the same experience although former chancellor Angela Merkel welcomed a million Syrian refugees into her country who were fleeing a bitterly fought civil war in their country. Their arrival was initially welcomed into the country but, following a couple of crimes attributed to them, resulted in the rise of rightist parties in several states in in the eastern part of the country. Once again skin colour and religion had played their roles. Germany has been very receptive to receiving refugees from Ukraine, a white and Christian country. The Germans are gradually leaning towards the far right Alternative for Germany, or AfD, which was founded in 2013 but gained support after Merkel's welcoming approach towards the Muslims from the Middle East who were leaving their war-torn countries in search for safe living. Large migrants-receiving countries as noted above don't include China. While Pakistan is a large people-exporting country, China is not the country to which many Pakistanis have moved in large numbers. One conclusion I have reached in this piece of work is that that should change. Given the enormous demographic differences between China and Pakistan, the latter could develop intuitions with the help of China to fill the youth-gap Beijing is now facing. While China has one of the oldest populations in the world, Pakistan is on the other side of the demographic spectrum. It now has one of the world's youngest populations. With China making quick advances in the area of artificial intelligence, it needs millions of young people to be employed in this activity. This is where Pakistan could be of help. However, to provide China with the young people it needs, Pakistan will need to properly educate and train them. One way of filling the skill-gap is to work with China to establish advanced educational and training institutions in which the type of expertise China needs can be developed. A few institutions can be established by China in collaboration with the public and private enterprises in Pakistan. These could be located on the motorways that are close to the Chinese border. People trained and educated in these institutions could move to China on a temporary basis or set up with Chinese help and work in Pakistan for the enterprises based in China.
