Financing for development to respond and recover in an era of interrelated and global crises

The Intergovernmental Group of Experts on Financing for Development, Reaffirming General Assembly resolution 69/313 of 27 July 2015 on the Addis

Ababa Action Agenda of the Third International Conference on Financing for Development,

Recalling General Assembly resolution 70/1, “Transforming our world: The 2030 Agenda for Sustainable Development”, of 25 September 2015, and relevant General Assembly follow-up resolutions,

Recalling paragraph 100 (r) of the Nairobi Maafikiano (TD/519/Add.2), which called for the establishment of an intergovernmental group of experts on financing for development, as well as paragraph 122 of the Bridgetown Covenant (TD/541/Add.2), which states that the work of the Intergovernmental Groups of Experts at UNCTAD are important elements under the intergovernmental machinery,

Noting the internal and external challenges for developing countries to increase domestic revenue collection,

Acknowledging the written and oral contributions from participants that enriched the debate during its sixth session,

1. Notes with concern that countries around the world continue to grapple with multiple crises, including the persisting negative effects of the coronavirus disease (COVID-19) pandemic, climate change and geopolitical tensions and conflicts which have accentuated food, energy and financial challenges, and undermined the ability to achieve the Sustainable Development Goals, highlighting the importance of a sustainable, inclusive and resilient recovery;
    
2. Welcomes in this regard the important work of the United Nations, including the Global Crisis Response Group on Food, Energy and Finance, the Task Team of which is coordinated by the UNCTAD Secretary-General, and the signing of the two Türkiye and United Nations-brokered Istanbul agreements consisting of the Initiative on the Safe Transportation of Grain and Foodstuffs from Ukrainian Ports (Black Sea Grain Initiative) and the Memorandum of Understanding between the Russian Federation and the Secretariat of the United Nations on promoting Russian food products and fertilizers to the world markets;
    
3. Stresses the adverse impact of rising external debt burdens in many developing countries on their ability to mobilize domestic resources for development; and notes with concern that about 54 per cent of the least developed countries and other low- income countries are now assessed to be at a high risk of or already in debt distress, while around a quarter of middle-income countries remain at high risk;
    
4. Expresses concern that mobilization of sufficient financing from all sources to achieve the 2030 Agenda remains a major challenge; notes the growing gap between the needs of developing country Parties, in particular those due to the increasing impacts of climate change and their increased indebtedness, and the support provided and mobilized for their efforts to implement their nationally determined contributions; and welcomes with appreciation the decision by the Conference of the Parties to the United Nations Framework Convention on Climate Change, at its twenty-seventh session, to establish new funding arrangements to assist developing countries in responding to the adverse effects of climate change and to loss and damage;
    
5. Recognizes with appreciation the steps taken by the Group of 20 to further promote debt-related measures and the implementation of the Debt Service Suspension Initiative and the Common Framework for Debt Treatments beyond the Debt Service Suspension Initiative; calls for all official bilateral creditors to implement these initiatives fully and in a transparent, timely and effective manner, while noting that more needs to be done, including to respond to the needs of countries not covered by current initiatives, including middle-income countries; and reaffirms in this regard the growing urgency of dealing not only with liquidity but also solvency risks;

6. Considers the enhancement of the Common Framework for Debt Treatments; and recommends in this regard, the facilitation, by all stakeholders, of predictable, timely and orderly debt treatments, as appropriate, with the broad participation of all creditors, including those in the private sector, on comparable terms, emphasizing the urgency of strengthening international efforts and cooperation;
    
7. Acknowledges efforts by the International Monetary Fund to provide additional concessional finance to crisis-stricken poorer developing countries during the COVID-19 pandemic; and welcomes the recent operationalization of the Resilience and Sustainability Trust of the Fund;
    
8. Reaffirms the need to consider an increase in concessional funding from multilateral development banks, which includes lending criteria that complement gross domestic product;
    
9. Commends countries that pledged $81.6 billion through the voluntary channelling of special drawing rights or equivalent contributions; calls for further pledges from all willing and able countries to meet the total global ambition of $100 billion of voluntary contributions for countries most in need; and highlights further voluntary options related to special drawing rights that could serve the needs of developing member countries of the International Monetary Fund, including through multilateral development banks;
    
10. Reiterates the need to redouble efforts to substantially reduce illicit financial flows by 2030, eliminating them, including by inter alia combating corruption through strengthened national regulation and increased international cooperation;
     
11. Highlights that, for all countries, public policies and the mobilization and effective use of domestic resources, underscored by the principle of national ownership, are central to the common pursuit of sustainable development;
     
12. Notes that official development assistance reached its highest level in 2021 during the unprecedented COVID-19 crisis; underscores the need for this trend to continue; urges development partners to scale up and fulfil their respective ODA commitments, including the commitment by many developed countries to achieve the target of 0.7 per cent of gross national income for official development assistance and 0.15–0.20 per cent of gross national income for official development assistance to the least developed countries; and notes that all development partners should align their support with the priorities of recipient countries, as identified in the national sustainable development strategies of developing countries;
     
13. Reaffirms that the universal, rules-based, open, transparent, predictable, inclusive, non-discriminatory and equitable multilateral trading system, under the World Trade Organization, is crucial, with global trade identified as an important engine for inclusive economic growth, sustainable development and poverty reduction;
     
14. Notes the importance of continuing to hold open, inclusive and transparent discussions on the modernization of ODA measurement and on the proposed measure of “total official support for sustainable development”, taking into consideration that any such measure shall not dilute the commitments already made, including those of the Addis Ababa Action Agenda;
     
15. Reiterates the need to continue to explore the benefits and costs of new and innovative instruments of development finance, including blended finance, public–private partnerships and Sustainable Development Goal bonds, according to national priorities; and invites creditors and debtors to further explore, where appropriate and on a mutually agreed, transparent and case by case basis, the use of new and improved debt instruments;
     
16. Recalls the request by the General Assembly for the Intergovernmental Group of Experts on Financing for Development to present the outcome of its work as a regular input to the Economic and Social Council forum on financing for development follow-up (General Assembly resolution 72/204, paragraph 27), in accordance with the terms of reference of the Intergovernmental Group of Experts.