Reform global financial architecture to achieve sustainable development: UN deputy chief

The Sustainable Development Goals (SDGs) are “slipping from our grasp” amid cascading global crises, highlighting the need to reform the global financial system, UN Deputy Secretary-General Amina Mohammed said in Washington, DC, on Thursday. 

Delivering remarks at a forum on reform held during the Spring Meetings of the International Monetary Fund (IMF) and the World Bank, she called for course correction now - the halfway point to achieve the goals by 2030. 

In recent years, developing countries have been battered by soaring energy and food costs, the climate emergency, and the COVID-19 pandemic. These crises have unfolded amidst rapidly tightening global financial conditions and rising borrowing costs.   

‘Flawed’ financial system 

The situation has put vulnerable countries at greater risk of debt distress and undermined their ability to invest in recovery, let alone climate action and long-term sustainable development. 

“These widespread challenges are indicative of a flawed global financial architecture – one that was designed for a world that no longer exists, and is too short-sighted, crisis-prone, and deeply unequal,” she said. 

Ms. Mohammed recalled that the UN Secretary-General has supported calls for reform and has even proposed a global SDG Stimulus Plan of at least $500 billion annually to scale-up affordable long-term financing for countries in need. 

Actions would include mobilizing official financing at scale, lowering the cost of borrowing, and providing contingency financing in times of crisis, she said, adding that they can be taken immediately and without any changes to the current financial architecture. 

Find common ground 

“There is no reason not to act and yet, the international community is not finding common ground; the G20 in particular remains at an impasse,” she said, referring to the world’s leading economies. 

“But, failing to listen to these clear cries for change would be a mistake, one that would lead to the decoupling of our global financial system and an unravelling of multilateralism at large,” she warned. 

Ms. Mohammed pointed to upcoming opportunities “to build a coalition of like-minded leaders to drive an ambitious financing package for the SDGs and climate action”. 

They include the Bridgetown Initiative, put forward by the Prime Minister of Barbados, Mia Mottley; a "Global Financing Pact" summit in June convened by French President Emmanuel Macron, and the SDG Summit and High-Level Dialogue on Financing at UN Headquarters in September.