SDG Lab: What Counts for the Future
17 April 2024
Dear Tatiana Valovaya, Director-General of UNOG;
Your Excellency, Mr. Eunice M. Tembo Luambia, Ambassador and Permanent Representative of Zambia to the United Nations;
Your Excellency, Mr. Umej Singh Bhatia, Ambassador and Permanent Representative of Singapore to the United Nations;
Your Excellency, Ms. Kadra Ahmed Hassan, Ambassador and Permanent Representative of Djibouti to the United Nations and World Trade Organization,
Ladies and gentlemen;
And most importantly, dear youths, our future generations,
It is with great pleasure that I am here with you today to discuss what counts for the future.
We are only six years away from the 2030 milestone, a deadline we set ourselves to achieve the Sustainable Development Goals (SDGs). These goals represent not just a collective aspiration but a compass to a future where prosperity is shared and sustainable.
Agreeing on this set of goals was a very important achievement and reflected that we need to measure the future through various dimensions.
But unfortunately, with the current challenges to recover from the pandemic, geopolitical tensions, and the risks of fragmentation, only 15 per cent of the SDGs are on track. This is disappointing and a reflection of the development crisis we are in.
The world suffers from increasing poverty and underdevelopment. Inequalities are present in multiple forms, such as available finance to react to crises, gender inequality, or digital divides that hamper inclusion and equal sharing of benefits from the growing digital economy and technological progress.
Looking ahead, global GDP is expected to grow 2.6 per cent in 2024. This makes 2024 the third consecutive year in which the global economy will grow at a slower pace than before the pandemic, when the average rate for 2015-2019 was 3.2 per cent.
Behind this trend, there is the slowdown of two traditional drivers of growth in the wake of the changing economic and political landscape: Trade and international investment.
While investment has been channeled towards the SDGs, the annual SDGs investment gap in developing countries has grown from 2.5 trillion US dollars in 2015 to a staggering 4 trillion today.
Another factor hampering development is the heavy debt burden in many developing countries. Today, 3.3 billion people live in countries that spend more on debt servicing than on health and education.
Some African countries spend more than 10 per cent of their fiscal expenditures on debt servicing, which is much more than the spending on health, at 6 per cent. But the continent’s economy is stifled not by the size of its debt but by the costs of servicing it. High-interest rates, far exceeding those of developed countries, are diverting resources away from critical development needs.
The high debt burdens of developing countries and the insufficient international investment mean that these countries struggle with mobilizing resources to adapt to climate change.
For example, only 2 per cent of all clean technology investments worldwide are flowing into Africa. Clearly, this is insufficient for the African continent to weather the storms of development challenges and climate change.
It is also unfair as climate change disproportionately affects many developing countries despite their minimal contribution to the problem.
But the climate emergency has brought the related needs and challenges to the forefront of policy discussions and has incentivized innovations and funding. While much more climate finance is still needed, new technologies and more commitments to find solutions are evolving.
Ladies and gentlemen,
Climate change stands out as the most pressing issue of our time, especially for you – the youth, who will deal with the long-term effects and will need to pave the way for a greener and more sustainable future. It is therefore not surprising that your engagement in climate action has surged. This underscores the importance of incorporating your voices in shaping solutions.
With you and the future generations, we need to recognize the intricate ties between economic growth and the health of our planet. We need to forge a path that transcends traditional metrics and embrace a future where prosperity is measured not just in fiscal terms but in the wealth of our natural, human, and social capital.
The narrative of economic success, for too long, has been dominated by GDP.Looking back in time, GDP emerged to fill a data gap after the Great Depression. The world population was 2.3 billion then compared to 8 billion today. The challenges were different. GDP helped to reconstruct the economy and was soon widely embraced as a tool for better living standards, and it gave national economies a measurable identity.
GDP is a measure of economic activity and is compiled by almost all countries based on a globally agreed standard – the System of National Accounts. But GDP does not necessarily measure what counts, for instance it leaves unpaid household work uncounted, leaving especially women’s full contribution to society invisible.
GDP may grow because of the overuse of our resources, rebuilding after a disaster, or due to illegal activities. It does not measure the kind of growth we have, its equality, or the conditions it's generated in, like job safety or fair pay.
But the problem is that GDP is used for purposes it is not intended. It is not a measure of well-being or sustainability. No matter how strong the measure, one metric simply cannot reflect the complex realities of today.
Hence, we must look beyond GDP, exploring alternative metrics that account for environmental and social well-being alongside economic growth.
Dear friends,
The Summit of the Future this September and the Declaration for Future Generations offer us an opportunity to address these challenges. The Summit can lay the groundwork for a more sustainable, equitable, and prosperous future. What we value for the future – the work on Beyond GDP – is an intrinsic part of the Pact for the Future – the expected outcome document of the Summit. With the summit, we also want to strengthen international cooperation, respond effectively to new threats, and restore trust in multilateralism.
At UNCTAD or UN Trade and Development as just rebranded, we recognize and support the pivotal role of youth as changemakers. Through initiatives like the Youth Forum, we aim to empower young people and engage them in discussions about the future.
I am also proud that UNCTAD supported the essay competition. I was utterly inspired by the 630 essays we received on the topic of beyond GDP. These essays from across regions convey values that emphasize care, equality, and justice, paired with respect and protection of the environment.
In closing, let me emphasize that our journey toward a sustainable and equitable future is not merely a series of challenges to be overcome but a profound opportunity to redefine prosperity itself.
Your role as change-makers is undeniable and indispensable. Your energy, ideas, and passion will guide us through the uncertainties of this era to a future we can all be proud of.
Thank you for your commitment, your vision, and your action. The journey is ours to shape, and together, we will make it one of hope, progress, and transformative change.
Thank you.
