Mr. José Manuel Salazar-Xirinachs, Executive Secretary of ECLAC,
Distinguished Ministers, Delegates and Guests,
First of all, allow me to express, on behalf of the Group of 77 and China, our appreciation to Mr. Salazar and ECLAC for the invitation to participate in this panel discussion, within the framework of the Sixth Meeting of the Forum of the Countries of Latin America and the Caribbean on Sustainable Development. I wish to emphasize the relevance of this debate and its importance for the Global South and for Latin America and the Caribbean in particular.
These are challenging times, especially for developing countries, which have been disproportionately affected by the lingering negative effects of the COVID-19 pandemic; a significant decline in official development assistance flows, both bilateral and multilateral; geopolitical tensions and conflicts in different parts of the world; rising food and energy prices; market volatility; inflation; unsustainable debt burdens; and climate change.
To the foregoing, a growing number of countries are added with the onerous burden of unilateral coercive measures imposed by developed nations.
The only way to avoid an irreversible crisis in the South, with unpredictable consequences for all humankind, is to open a qualitatively different chapter in international development cooperation, that enhances the implementation of the transforming goals set out in the 2030 Agenda and the Paris Agreement.
As we have said in other forums, most recently at the spring meetings of the World Bank and the International Monetary Fund held in Washington, this is a multidimensional challenge, which must be critically addressed through urgent and structural measures.
In this endeavor, it will be essential for the G77 and China to address a real reform of the international financial architecture. The current IFI governance system was created almost a century ago and today does not represent the interests and needs of the majority of its members. Nor do its policies provide developing countries with the space for their own national public policies or the stability needed to achieve the SDGs.
The IFI reform should aim, among other results, to:
a) A greater and more effective participation of developing countries in the governance and decision-making processes of these institutions;
b) An improved global sovereign debt architecture with meaningful participation of developing countries;
c) The rechanneling of unutilized Special Drawing Rights (SDRs) to the countries of the South and a new allocation of SDRs;
d) The early and sizeable recapitalization of Multilateral Development Banks to meet the financial needs of developing countries;
e) Promoting inclusive and effective international tax cooperation at the United Nations and rationalizing the role of credit rating agencies.
On the other hand, there is an urgent need to establish a set of measures of progress on sustainable development that go beyond GDP to define access to concessional financing and technical cooperation by developing countries. This is essential for middle- and low-income countries, and certainly for many in our region.
It is also essential to ensure that our countries have the fiscal space needed for post-pandemic recovery and for achieving the SDGs, by mobilizing significant investments in quality, reliable, sustainable and resilient infrastructures.
The new paradigm of international cooperation to which we not only aspire, but which is absolutely necessary, must have cooperation in science, technology and innovation among its driving forces, in order to move towards more sustainable and equitable development models.
Consubstantial to all of the above will be to give new impetus to all international financing for development, including the long-standing commitment of developed countries to official development assistance, as well as those commitments under agreements and mechanisms established in legally binding instruments such as the United Nations Convention on Climate Change and its Paris Agreement.
Climate change has transformed the nature of development challenges. Therefore, the internationally agreed climate agenda must be fully and faithfully implemented in accordance with the principle of equity and common but differentiated responsibilities and respective capabilities.
It is deeply disappointing that the goal of mobilizing US$ 100 billion per year and up to 2020 as climate finance has never been met. In this context, we emphasize the need to advance the process for the establishment of the New Collective Quantified Goal on Climate Finance, as well as the operationalization of the fund to respond to loss and damage.
Excellencies:
A new paradigm of cooperation cannot be envisaged without addressing the problems of the international trade system, which must also be reformed.
The multilateral trading system must be conducive to the establishment of stable and sustainable supply chains by promoting export-led growth in developing countries. This requires strengthening special and differential treatment for the nations of the South as a multilateral principle. Unilateralism and protectionism, including trade-restrictive measures that are incompatible with the WTO Agreements, should be speedily eliminated, including the use of unilateral coercive economic measures against developing countries for political reasons.
Developed countries should commit more firmly in tackling illicit financial flows from developing countries, which undermine the ability of our economies to achieve sustained growth and development.
The SDG Summit will take place in the midst of this critical juncture. Addressing the serious shortfall in the provision of means of implementation remains a challenge that must be considered holistically.
The time has come to send a clear political message that renews our collective commitment to implement the 2030 Agenda and its SDGs, which is also based on important milestones such as the Addis Ababa Action Agenda and the Paris Agreement.
The G77 and China will focus their efforts on achieving a declaration that reinforces the political will of leaders at the highest level, and focuses on the immediate implementation of the 2030 Agenda and its SDGs, while addressing the gaps and challenges described above.
The current development challenges require the countries of the South to strengthen their unity and fighting spirit as never before in order to achieve our legitimate demands. This is the only way to hold the prevailing unjust order from finally dampening the dreams of prosperity and social justice of our peoples.
Likewise, the results of the SDG Summit should make a significant contribution to the preparatory process for the Summit of the Future in 2024. The future cannot be built without adequately addressing the urgencies of the present.
Thank you very much