Latest news with #SevillaPlatformforAction
Bangkok Post
4 hours ago
- Business
- Bangkok Post
Resetting development finance
At the Fourth International Conference on Financing for Development this week in Seville, delegates are calling for urgent action to fix a system that has stopped working. Prior to the third such gathering a decade ago, in Ethiopia, we had witnessed unprecedented advances towards reducing poverty, increasing school enrolment, and providing clean water worldwide. Today, however, progress is not only slowing but potentially stagnating -- or, worse, reversing. Global growth this year is expected to slow to its lowest rate (outside of a crisis) since 2008. The outlook is especially problematic for developing countries that are already growing well below historical averages, and for those 35 countries, mostly in Africa, that are already in or at high risk of debt distress. One out of every three countries now spends more repaying creditors than on health or education. As debt payments crowd out money needed for development, these countries' futures are being jeopardised. Meanwhile, the global gap between the richest and the poorest continues to grow, with Oxfam estimating that the new wealth of the top 1% surged by more than US$33.9 trillion since 2015 -- enough to end poverty 22 times over. The situation won't change unless there are greater flows of finance to developing countries. Moreover, quality matters as much as the quantity: There has been far too much finance of the kind that leads to financial distress, and far too little of the kind that promotes sustained growth. We believe that finance for development is too important not to involve every stakeholder. As the late Pope Francis emphasised, doing so is a moral obligation. That is the message of the Vatican's new Jubilee Report on debt, reflecting the work of a global commission of experts -- which one of us (Stiglitz) chaired. But fixing development finance is also a matter of self-interest for most advanced economies. After all, poverty and inequality give rise to social tension, diseases, and conflicts, with spillovers that do not respect national boundaries. Moreover, a lack of finance in developing countries implies a lack of investment in climate-change mitigation, a global public good that is necessary for everyone's future prosperity. With the world so divided, and so afflicted by the exercise of raw power and by short-term thinking, the Seville conference should be seen as an opportunity to renew multilateralism for the common good. But it will need to be more than just an exercise in speech-making about the hope of a better future. Such rhetoric must be translated into tangible progress, and there are some signs that this could happen. The outcome document, the "Compromiso de Sevilla", forged at the United Nations in New York, gives us confidence that this gathering will lay the foundation for a new debt and financial architecture. Specifically, Spain has launched the Sevilla Platform for Action, providing a comprehensive framework for coalitions of the willing to advance ambitious, but feasible, initiatives that will drive material progress in addressing challenges related to sustainable development. For example, we should see the launch of a Global Hub for Debt Swaps to generate more fiscal space for investment in sustainable growth; a Debt Pause Clause Alliance, to ease pressure on vulnerable countries' budgets when they are squeezed by extraordinary events; a broad push to re-channel International Monetary Fund special drawing rights (SDRs) -- the IMF's global reserve asset, held mostly by wealthy countries -- towards more effective uses; steps to strengthen the voices of debtor countries through a borrower-country platform; and the start of an intergovernmental process on debt restructuring at the UN, following principles that were already agreed by an overwhelming majority of member states a decade ago. These steps represent just the start. In time, the Seville conference could be remembered not as a landing zone, but as a launchpad for further action. But for that to happen, we must continue to push for more ambitious, yet feasible, solutions. For example, creating a Jubilee Fund with $100 billion (3.25 trillion baht) worth of untapped SDRs for debt buybacks would provide the most vulnerable countries with resources that they desperately need to promote sustainable growth. Equally, one can imagine broader frameworks for debt-for-nature and debt-for-development swaps, as well as new and fairer green trade and investment agreements that enhance domestic resources and facilitate developing countries' participation in the global effort to address climate change. Seville represents an opportunity to look at finance and send a message of commitment to multilateralism. We remain optimistic, because we believe in the power of pragmatism. By focusing on workable solutions that go beyond the text of whatever agreement emerges, we can finally put development back on track. ©2025 Project Syndicate 1995–2025
Scoop
2 days ago
- Business
- Scoop
After The Big Development Pledges In Seville, UN Says Action Starts Now
30 June 2025 l Economic Development That's where the Sevilla Platform for Action (SPA) comes in – a major step to begin implementing the Sevilla Commitment without delay. It features over 130 concrete actions to support the renewed global financing framework that world leaders just adopted at the international conference. They will help countries mobilise resources for an SDG investment push, build developing countries' development capacity, help address the sustainable development debt crisis, and take steps to improve the system by which the developing world can borrow money for national investment without crippling debt burdens. Launching the platform, Spain's Prime Minister Pedro Sánchez, highlighted the urgency of collective action saying the platform represents 'a critical opportunity to restore trust in multilateralism and deliver tangible financing.' UN Secretary-General António Guterres underscored the importance of the SPA as a catalyst for joint action and delivery. In a world divided, it is 'a springboard towards a more just, inclusive and sustainable world for all countries,' he said. Countries can make up for absence of US Speaking earlier at press conference for the hundreds of journalists here in Sevilla, he said the absence of the United States which left negotiations earlier this month was a challenge but there are always ways to raise the money needed: 'It's a question of political will.' This can be done if leaders are willing to take the necessary measures such as working through multilateral development banks and carbon taxes, for example. Power shifts 'To have the United States on board would be excellent but it can be done in any case by those willing to do so.' 'I have a clear message to the powerful,' the UN chief continued. 'It's better to lead the reform of the system now than to wait and eventually suffer the resistance later when power relations change. 'And I believe that the reforms that are proposed in Sevilla in line with the work that was done in the Summit of the Future are reforms that are absolutely needed both for developing and developed countries.' Following the opening remarks, interventions demonstrated strong political commitment to start implementing the historic funding agreement. Notable initiatives include a global hub for debt swaps for development at the World Bank and a debt pause clause alliance – championed by Spain and a coalition of partners. Sevilla Platform for Action at a glance: It aims to bring together countries, organisations, businesses and others to make real, measurable progress in tackling global financial and development challenges. Any group – from governments to charities, businesses to universities – can put forward a new or significantly expanded plan that supports the UN's sustainable development goals. Proposals must set out clear, achievable actions with specific results, a timeline, and show how they will be funded. Submissions were open from 1 May to 6 June 2025, using an online form. Each plan had to name the lead group behind it, list any supporting partners, explain what makes it new or ambitious, and include a communications plan. Selected initiatives will be presented to the public and media during FFD4 in Sevilla. All approved commitments will be listed online, with progress tracked and reported through future UN reviews and meetings. 'Everyone's business' A further essential part of turning words in Sevilla into action on the ground, is mobilising the business community. Business leaders on Monday issued an urgent appeal to unlock more private capital at the opening of the International Business Forum on Monday. António Guterres told delegates: 'Development is everyone's business', emphasising the private sector's essential role alongside public institutions in achieving the SDGs. Sevilla in the south of Spain is the venue for FFD4. Five priorities for delivery A new communique from the conference's Business Steering Committee – co-chaired by the International Chamber of Commerce (ICC) and Global Investors for Sustainable Development (GISD) – outlines five priority areas for action: Create more ways to invest in development: Set up tools and platforms that make it easier and safer for private money to flow into projects that help people, especially in poorer countries. Work more closely with governments: Join forces to plan and support projects from an early stage, making them ready for investment. Make sustainability rules clearer and more consistent: Align standards across countries so businesses can invest more confidently and support national development goals. Fix financial rules that get in the way: Update regulations that make it harder to invest long-term in developing countries. Help small businesses get funding: Improve access to finance for entrepreneurs by reducing risks and partnering with development banks and governments. The communiqué complements the newly endorsed Seville Agreement and business leaders described the moment as pivotal. 'Private finance is essential to bridge the global gap,' said José Viñals, co-chair of GISD. At the forum, developing countries are showcasing over $1 billion worth of investable projects in sectors including energy, agriculture and digital infrastructure. 'The focus now must be on action,' said UN economic chief and conference Secretary-General Li Junhua.
Straits Times
2 days ago
- Business
- Straits Times
France, Spain, others agree to tax premium flyers, private jets
SEVILLE, Spain - A group of countries including France, Kenya, Spain and Barbados pledged on Monday to tax premium-class flying and private jets in a bid to raise funds for climate action and sustainable development. As many richer nations scale back official development aid for countries even as extreme weather events increase in frequency and severity, some are looking to find new sources of finance, including by taxing polluting industries. The announcement on the opening day of a U.N. development summit in Seville, Spain, was one of the first to emerge from the "Sevilla Platform for Action" that aims to deliver on the renewed global financing framework agreed ahead of the event. "The aim is to help improve green taxation and foster international solidarity by promoting more progressive and harmonised tax systems," the office of Spanish Prime Minister Pedro Sanchez said in a statement. The initiative, which was co-signed by Sierra Leone, Benin and Somalia, will get technical support from the European Commission, it added. All are members of the Global Solidarity Levies Task Force, launched in November 2023 to explore new forms of taxation that could help support developing countries' efforts to decarbonise and protect themselves against the impacts of climate change. As well as an aviation tax, which could raise billions of dollars, the task force said in a recent report that other sectors that could potentially be taxed more include shipping, oil and gas, cryptocurrencies and the super-rich. Rebecca Newsom of environmentalist group Greenpeace called the move "an important step towards ensuring that the binge users of this undertaxed sector are made to pay their fair share". She added that the "obvious" next step was to hold oil and gas corporations to account. REUTERS Join ST's Telegram channel and get the latest breaking news delivered to you.
Reuters
2 days ago
- Business
- Reuters
France, Spain, others agree to tax premium flyers, private jets
SEVILLE, Spain June 30 (Reuters) - A group of countries including France, Kenya, Spain and Barbados pledged on Monday to tax premium-class flying and private jets in a bid to raise funds for climate action and sustainable development. As many richer nations scale back official development aid for countries even as extreme weather events increase in frequency and severity, some are looking to find new sources of finance, including by taxing polluting industries. The announcement on the opening day of a U.N. development summit in Seville, Spain, was one of the first to emerge from the "Sevilla Platform for Action" that aims to deliver on the renewed global financing framework agreed ahead of the event. "The aim is to help improve green taxation and foster international solidarity by promoting more progressive and harmonised tax systems," the office of Spanish Prime Minister Pedro Sanchez said in a statement. The initiative, which was co-signed by Sierra Leone, Benin and Somalia, will get technical support from the European Commission, it added. All are members of the Global Solidarity Levies Task Force, launched in November 2023 to explore new forms of taxation that could help support developing countries' efforts to decarbonise and protect themselves against the impacts of climate change. As well as an aviation tax, which could raise billions of dollars, the task force said in a recent report, opens new tab that other sectors that could potentially be taxed more include shipping, oil and gas, cryptocurrencies and the super-rich. Rebecca Newsom of environmentalist group Greenpeace called the move "an important step towards ensuring that the binge users of this undertaxed sector are made to pay their fair share". She added that the "obvious" next step was to hold oil and gas corporations to account.
Barnama
2 days ago
- Business
- Barnama
UN Chief Warns Of ‘Decimated' Aid Budgets At Development Conference In Spain
UN Secretary-General Antonio Guterres speaks during the launch of the Sevilla Platform for Action during the 4th International Conference on Financing for Development, in Seville, Spain, June 30, 2025. REUTERS/Claudia Greco OVIEDO (Spain), June 30 (Bernama-Anadolu) -- United Nations (UN) Secretary-General Antonio Guterres on Monday warned that foreign aid budgets have been 'decimated,' saying this isn't a crisis of numbers but of 'families going hungry, children unvaccinated, children dropping out of school,' at a major development conference in Seville. According to Anadolu Ajansi (AA), Guterres noted that meeting the 2030 Sustainable Development Goals — a global agenda to end poverty, protect the planet and promote peace — requires about US$4 trillion a year. 'But we are here in Seville to change course, to restore a message of fairness and justice for all,' Guterres added. bootstrap slideshow The secretary-general was addressing the Fourth International Conference on Financing for Development — the first such gathering in a decade. About 50 world leaders and 4,000 representatives from business, civil society and financial institutions are attending the four-day event. Earlier this month, the United States (US) announced it would not attend. Washington, which recently cut funding to the United States Agency for International Development (USAID) – historically one of the world's largest aid agencies – has also formally rejected the Sustainable Development Goals. 'For decades, the mission of sustainable development has united countries large and small. Together, we achieved progress,' Guterres said. 'But today, development and international cooperation are facing massive headwinds. We are living in a world where trust is fraying and multilateralism is strained,' he said.
