In a significant gathering in Seville, Spain, leaders from various nations convened to address the growing financing gap between rich and poor countries. This four-day Financing for Development meeting, co-hosted by the United Nations and Spain, aims to mobilize the estimated $4 trillion necessary for global development and to help achieve the U.N.’s Sustainable Development Goals (SDGs) by 2030.
U.N. Secretary-General Antonio Guterres opened the meeting with a stark warning, emphasizing that the financing engine crucial for development is currently sputtering. The challenges faced by many countries include escalating debt burdens, a decline in international aid, decreasing investments, and rising trade barriers.
Despite the backdrop of global economic uncertainty and geopolitical tensions, there is a concerted effort among world leaders to address critical issues such as access to food, healthcare, education, and clean water for all.
Over 70 national leaders and representatives from international financial institutions, development banks, philanthropic organizations, the private sector, and civil society are participating in this crucial conference.
Spanish Prime Minister Pedro Sánchez highlighted the summit as an opportunity to voice collective strength against divisive rivalries, asserting that collaboration is essential for humanity’s future.
In an unexpected turn, the United States has chosen to withdraw from the process, rejecting the outcome document negotiated by the U.N.’s 193 member states. The U.S. announced its decision during the last preparatory meeting on June 17, raising concerns about its implications for international cooperation.
The Seville Commitment document, agreed upon without U.S. participation, outlines an ambitious reform and action plan aimed at urgently closing the financing gap. Key points include establishing a minimum tax revenue of 15% of a country’s gross domestic product to enhance governmental resources, tripling the lending capacity of multilateral development banks, and increasing private sector investment in vital areas like infrastructure.
The document also calls for necessary reforms to assist countries in managing their rising debt, which has increasingly become a strain on national budgets. U.N. trade chief Rebeca Grynspan indicated the current trend of development regression, warning that the global debt crisis has intensified.
According to Grynspan, 3.3 billion individuals lived in countries where debt interest payments exceed spending on health and education last year, and this number is projected to rise to 3.4 billion this year. Developing countries alone are expected to pay approximately $947 billion in debt servicing this year, up from $847 billion in the previous year.
Angolan President Joao Lourenco, speaking for the African Group at the conference, shed light on the dire situation regarding debt repayment, stating it often consumes more resources than health and education budgets for many nations.
The U.S. objections to the agreement arose primarily from concerns over governance interference in international financial institutions. Diplomat Jonathan Shrier articulated that the U.S. commitment to international cooperation and long-term economic development remains intact; however, he pointed out that the proposed text crossed many of the nation’s red lines.
Specific issues raised included the need for reforms that would give the U.N. a role in global debt architecture and the call to triple multilateral development bank lending. Other contentions involved trade, tax proposals, and innovation strategies misaligned with U.S. policy.
Historically, the United States was the largest single source of foreign aid, but recent administrations, particularly under President Donald Trump, have significantly reduced funding for international assistance, labeling it wasteful.
Moreover, other Western nations have also scaled back on their aid commitments. U.N. Deputy Secretary-General Amina Mohammed expressed disappointment regarding the U.S. withdrawal, emphasizing the need to engage with the U.S. to reaffirm its commitment to alleviating global poverty post-Seville.
In contrast, European Commission President Ursula von der Leyen reinforced the European Union’s unwavering commitment to development financing, assuring that their support would continue to solidify the foundations for sustainable global growth.
image source from：latimes
