UN official stresses need for development financing

UNITED NATIONS, April 23 (Xinhua) -- UN Deputy Secretary-General Amina Mohammed on Monday called for efforts to boost development financing, particularly for countries with urgent needs.

The global economy is strengthening and a broad-based economic upturn has underpinned progress in many areas. But significant weaknesses and medium-term risks in the world economy continue to pose challenges, Mohammed told a forum of the UN Economic and Social Council.

"As a result, the development prospects for hundreds of millions of people remain in jeopardy. We need a comprehensive and systemic response to remain on track (for the 2030 Agenda for Sustainable Development)."

The international community must find ways to speedily unlock resources and access to finance for countries with urgent needs, such as those affected by crises or disasters, she said.

The 2017 Atlantic hurricane season wrought havoc and destruction across the Caribbean and reversed the development course of the affected countries. These disasters underlined the need for a wide range of measures to support countries that face such challenges, including by financing climate change adaptation, she said.

There are some innovative solutions being devised in this area, such as insurance-like mechanisms that can be supported where needed, or loans that reduce repayment during crises. However, many of these are yet to be implemented or taken to scale, she noted.

Resources also need to be more effectively targeted to the sectors that are integral to achieving the Sustainable Development Goals (SDGs), such as access to clean water and sanitation. On affordable and clean energy, impressive gains are being made as the price of renewables decline, but again, investment needs considerably exceed current spending.

Mohammed stressed the importance of development cooperation. Meeting commitments on official development assistance must be a priority. Although such assistance has increased in real terms, it has stagnated for countries where it is most needed, she said.

There is also a need for a global enabling environment that is supportive of long-term investment, she said. "Short-termism is a persistent threat to successful poverty eradication efforts."

Most corporate executives still say they would delay investments in projects with positive returns in order to hit quarterly earnings targets. "We need to find ways to change this mindset -- solutions and incentives to turn that around."

Governments and partners from the private sector must work more effectively to overcome current financing challenges. "We need to think innovatively about how to catalyze the growing interest and potential of private investment for the SDGs, bringing down the barriers."

She said domestic resource mobilization is fundamental. "Integrated national sustainable development strategies and financing frameworks can provide a long-term vision and platform to support domestic financing. This is especially important in the context of much-needed infrastructure spending in developing countries."

Additionally, the international community needs to help fight tax evasion, money laundering and illicit financial flows which undermine domestic resource bases, she said. Enditem