Roundup: UN conference reaches agreement on financing sustainable development

World countries have agreed to new initiatives on technology, infrastructure, social protection, health and climate change among others to achieve the post-2015 sustainable development goals.

The countries agreed to the initiatives at a time when they reached the historic agreement called the Addis Ababa Action Agenda, at the United Nations Third International Conference on Financing for Development, being held from Monday to Thursday in Ethiopia's capital Addis Ababa.

With the agreement on the Addis Ababa Action Agenda, the countries have agreed on a series of bold measures to overhaul global finance practices and generate investments for tackling a range of economic, social and environmental challenges.

The Addis Ababa Action Agenda provides a foundation for implementing the global sustainable development agenda that world leaders are expected to adopt in New York in September this year, according to the UN news statement.

To achieve the goals, the countries also agreed to new initiatives, including on technology, infrastructure, social protection, health, micro, small and medium-sized enterprises, foreign aid, a package of measures for the poorest countries, taxation, and climate change.

On technology, the countries have agreed to establish a Technology Facilitation Mechanism at the Sustainable Development Summit in September to boost collaboration among governments, civil society, private sector, the scientific community, UN entities and other stakeholders to support the sustainable development goals.

On infrastructure, the countries have agreed to establish a Global Infrastructure Forum to identify and address infrastructure gaps, highlight opportunities for investment and cooperation, and work to ensure that projects are environmentally, socially and economically sustainable.

Regarding social protection, the countries have adopted a new social compact in favor of the poor and vulnerable groups, through the provision of social protection systems and measures for all, including social protection floors.

On health, the countries agreed to consider taxing harmful substances to deter consumption and to increase domestic resources.

They agreed that taxes on tobacco reduce consumption and could represent an untapped revenue stream for many countries.

With regard to micro, small and medium-sized enterprises, the countries committed to promote affordable and stable access to credit for smaller enterprises.

They also pledged to develop and operationalize a global strategy for youth employment and implement the International Labor Organization Global Jobs Pact by 2020.

On foreign aid, the countries recommitted to achieve the target of 0.7 percent of gross national income for official development assistance, and 0.15 to 0.2 percent for least developed countries.

Regarding to a package of measures for the poorest countries, developed countries commit to reverse the decline in aid to the poorest countries, with the European Union committing to increase its aid to least developed countries to 0.2 percent of gross national income by 2030. They also agree to adopt or strengthen least developed countries investment promotion regimes, including with financial and technical support. Governments also aim to operationalize the technology bank for this group of countries by 2017.

On taxation, the Agenda calls for strengthening support for the work of the UN Committee of Experts on International Cooperation in Tax Matters to improve its effectiveness and operational capacity, and the engagement with the Economic and Social Council. It emphasizes the importance of inclusive cooperation and dialogue among national tax authorities.

Regarding climate change, the Action Agenda calls on developed countries to implement their commitment to a goal of jointly mobilizing 100 billion U.S. dollars per year by 2020 from a wide variety of sources to address the needs of developing countries.

The countries also committed to phase out inefficient fossil fuel subsidies that lead to wasteful consumption.

In addition, there were about 200 side events, where governments and other stakeholders announced additional commitments. These included additional aid for capacity building in the area of taxation; financing through development banks, including 400 billion dollars from the World Bank Group, as well as establishment of new international development banks; and increased aid and philanthropic funding for social needs. Endi