The primary goal of the UN General Assembly meeting is to develop creative and efficient ways to reduce the gap between the wealthy and the poor.
The UN Department of Economic and Social Affairs, responsible for SDG financing, states that although fiscal issues are becoming increasingly dire, “there is still a chance to act now.”
Most developing countries are heavily burdened with debt, and one out of three countries is in danger of facing a fiscal crisis, according to the UN.
These countries cannot make progress on the SDGs if they are paying too much on debt payments instead of health and education.
“Developing countries have to pay up to eight times more than developed countries – a debt trap”, said UN Secretary-General António Guterres, “and one out of three countries is now at high risk of a fiscal crisis.
“More than 40% of people living in extreme poverty reside in countries with serious debt problems”.
This year’s High-level Dialogue is especially important since only 15% of the SDG targets are on track.
Member States observed that while there has been progress in all the areas of the Addis Ababa Action Agenda – the roadmap for financing the SDGs – there are still many finance commitments that have not been fulfilled.
The current economic situation, caused by the COVID-19 pandemic, conflicts, and climate change, is putting SDG financing under greater pressure.
UN Secretary-General Guterres believes that to increase SDG financing significantly, innovative methods, bold decisions, and new sources of funding are needed.
Member States welcome Guterres’ proposal for an SDG Stimulus of at least $500 billion US dollars per year to provide more affordable, long-term financing for development.
They also support his call for comprehensive and long-term reforms to the international financial architecture, which is not providing enough assistance to all countries and is exacerbating inequalities.
“It is evident that the systemic issues of financing for sustainable development need a systemic solution: reforms of the global financial architecture,” said the UN Secretary-General.
He is also proposing a new Bretton Woods moment, when countries can come together to negotiate a new global financial architecture that reflects the current economic conditions and power relations.
“We must take advantage of this moment of crisis to build global solidarity, create new impetus for sustainable development and climate action,” Mr. Guterres said.