Sustainable Development: Emphasis on ensuring funding for developing countries TOU

Sustainable Development: Emphasis on ensuring funding for developing countries

 TOU

Sustainable Development: Emphasis on ensuring funding for developing countries

United Nations on TuesdayCredit for 2022 Sustainable Development Report: Bridge to the Finance DivideIn which the availability of funds for sustainable development has been reviewed.

The report suggests that borrowing a record amount at extremely low interest rates has made it possible for rich countries to emerge from the global epidemic.

However, the poorest countries had to pay billions of dollars in their debt installments and could not invest in sustainable development.

According to the report, on average the poorest developing countries have to pay 14% of their total income on interest on debt.

This figure is four times higher than in developed countries (3.5 per cent).

In the world, the global epidemic has forced many developing countries to cut back on their education, infrastructure and other important areas.

“At a time when we are approaching the halfway mark of funding the world’s sustainable development goals, these findings are worrisome,” said UN Deputy Secretary-General Amina Mohammed.

The UN deputy chief said that at this crucial moment of collective responsibility, there was no excuse for not helping and taking action against those suffering from hunger and poverty.

“We must invest in fair and green employment, social security, access to health care and education and not leave anyone behind.”

The first global epidemic, now the Ukraine crisis

In the year 2021 Covid-19 The epidemic left more than seven and a half million people living in extreme poverty and by the end of the year many economies had fallen below pre-2019 levels.

The report estimates that per capita GDP in one of the five developing countries will not return to 2019 levels before the end of 2023.

Such fears have been pre-assessed by the impact of the war in Ukraine, and these challenges are expected to deepen with the war in Ukraine.

At the same time, new challenges will arise due to high energy prices, rising commodity prices, re-disruption in the supply chain, high inflation rates and slow progress.

Against this background, debt pressures for many developing countries will increase and so will the number of people not getting enough food.

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UN Photo / Eskinder Debbie

UN Deputy Secretary-General Amina Mohammed briefed reporters on the report.

Positive signs and measures of action

The report states that some progress has been made in the areas of investment in poverty reduction, social security and sustainable development, which has been made possible by steps taken by developed and some large developing countries.

For example, the Covid-19 emergency cost 17 trillion.

Under this, financial support for research and development, green energy and digital technology has increased, private investment has increased. At the same time, official development aid has also seen record growth, reaching $ 161 billion.

However, due to the huge needs in developing countries, this amount is insufficient, and in the background of the Ukraine crisis, it may even record a decline.

The report calls for action in three key areas:

  • Financing gap and emerging debt risks will be addressed immediately

  • All financial transactions should be tailored to the needs of sustainable development

  • Increase transparency and strengthen countries’ ability to eliminate risks and make better use of resources through information ecosystems.

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