The main goal of the important UN General Assembly gathering is to find creative and workable ideas to reduce the growing gap between rich and poor.
Although financial difficulties are becoming more severe, the UN Department of Economic and Social Affairs, which oversees the UN’s efforts to finance the SDGs, emphasises that “there is a window of opportunity if we act now.”
The majority of developing nations experience serious debt issues. Additionally, the UN reports that one in three nations worldwide currently face a high danger of experiencing an economic crisis.
If these nations must pay expensive borrowing costs and spend more on debt servicing than on healthcare or education, they will be unable to fund progress towards the SDGs. One in three countries worldwide is currently at high risk of a fiscal catastrophe, and developing countries face borrowing costs that are up to eight times greater than those of affluent ones.
“Countries with severe debt challenges have over 40% of the world’s extreme poor.”
According to Mr. Guterres, innovative strategies, audacious policy choices, and new funding sources will be needed to rapidly scale up SDG finance.
The UN Secretary-General’s suggestion for an SDG Stimulus of at least $500 billion USD annually is welcomed by Member States as it will greatly enhance accessible, long-term finance for development.
They also support his proposal for more extensive and long-term changes to the global financial system, which at the moment fails to provide a safety net for all nations and worsens inequality.
It is obvious that adjustments to the world financial system are necessary to address the systemic issues with finance for sustainable development.
He is also advocating for a fresh Bretton Woods moment, in which nations can unite to decide on a new global financial system that takes into account current power dynamics and economic realities.
Together, Mr. Guterres said, “we must transform this crisis into an opportunity, find joint financing solutions to restore global solidarity, and generate new momentum for sustainable development and climate action.”