One message that was repeated throughout last month’s summit on a so-called “New Global Financing Pact
” was that developing countries urgently need mass financing to tackle the climate and biodiversity emergency. And there is not enough of it in public coffers.
Held in-person for the first time in three years, the annual meetings of the International Monetary Fund and World Bank last week in Washington, D.C. failed to offer solutions to the dozens of developing countries in debt distress or on the forewarned global recession instigated by monetary tightening.
Last week’s annual meetings of the International Monetary Fund (IMF), World Bank and G20 finance ministers illustrated that despite a historic debt crisis sweeping across developing countries and their urgent need for external financing for health and economic recovery, global economic institutions governed by rich countries do not possess the political will to deliver meaningful solutions. The inadequacy of the G20’s debt relief framework, which has failed to restructure sovereign debt since its inception, stands without change or any fresh effort to mobilize private sector participation in debt relief.
At about a quarter to seven on the evening of Sunday, Aug. 2, the member states of the United Nations adopted the post-2015 development agenda outcome document, titled "Transforming Our World: The 2030 Agenda."
The United Nations is the only universal forum that connects systemic issues to the global partnership for development. The latter recognises North-South cooperation based on historical responsibility and varying levels of development and capacity among member states of the U.N.
The third Financing for Development (FfD) conference in Addis Ababa concluded last Thursday, July 16, in bad faith as developed countries rejected a proposal for a global tax body and dismissed developing countries’ compromise proposal to strengthen the existing U.N. committee of tax experts.
The key priorities of the Group of 77 developing countries (G77) remain somewhat aligned around a set of issues that have been present from the beginning of the FfD negotiations in New York.
Lack of ambition and consensus in the New York negotiations begs the question of whether governments in Addis Ababa will salvage or further dilute the outcome of the Third International Conference on Financing for Development from July 13-16.