[Video Message]
Dear colleagues,
Dear Friends,
Allow me to convey my sincere thanks to Mexico, Germany and Switzerland, for their unwavering support to the FfD process, and to express my appreciation to Mexico for hosting this important retreat.
We gather when FfD4 is only three months away, and the SDGs are significantly off-track.
Multilateral systems and institutions are under threat, at this moment when collaboration and coordinated action are needed more than ever.
The global economy faces severe challenges, particularly for developing countries. Structural deficiencies in the global economy continue to be significant. Growth prospects remain weak, and many developing countries are suffering from unsustainable high debt burdens. The climate crisis is intensifying. Rising protectionism and geopolitical tensions present big downside risks to economic prospects.
The first draft of the Outcome Document of FfD4 has put it very explicitly -- we are in a sustainable development crisis. And financing challenges are at the core of this crisis.
Developing countries have no fiscal room to invest, and many countries are spending a significant share of their public revenue on debt service. Sky-high costs of capital make investment in sustainable transformations ¨C both public and private - almost impossible.
Colleagues,
Despite this crisis, there is no time for giving in to despair. Realizing sustainable development against this very challenging backdrop requires deep structural transformations. It is only through bold, systemic and coordinated changes that we can meet our global goals.
For countries to deliver such transformations, they need sufficient fiscal and policy space as well as effective international support and an enabling environment.
This is why FfD4 is a pivotal moment to move the needle in these areas and enable countries to meet their development ambitions.
Indeed, FfD4 will serve as a bellwether for our capacity to take multilateral action and address our collective challenges within an increasingly uncertain global context.
The first draft of the outcome document sets the ambition for transformative change in the global economy and re-orient finance for sustainable development.
Allow me to highlight two key priority packages of action:
First, an SDG investment push. This focuses on impactful scaling of investment and SDG impact, particularly through public development banks, along with leveraging private finance. It includes actions to expand developing countries¡¯ fiscal space and reduce their borrowing costs, and mobilize more and higher quality private capital.
Second, reforms to the international architecture. This seeks to make it more effective and responsive to global challenges, and more inclusive to enhance the voice of developing countries in global economic governance, including not only the debt, tax and financial architecture, but also development cooperation.
These structural transformations need to be anchored in stronger country leadership and better coordination among all development partners, including multilateral development banks, to support country-led strategies and plans.
Excellencies,
The first draft of the outcome document serves as a robust foundation for a transformative outcome.
We must keep the level of ambition high and work together towards an outcome that delivers concrete results. This is truly a once-in-a-generation opportunity to re-affirm our multilateral values and underline our common commitment to tackle global challenges together.
I look forward to your discussions over the next few days and your insights on how we can achieve this bold and transformative vision.
Thank you!