The month of July witnessed first of three major summits scheduled in the year 2015 where world leaders gathered at the Third Conference on Finance for development in Addis Ababa from July 13th - July 17th to find out the means for sustainable finances for achieving the Sustainable Development Goals (SDGs).
The contours of the nature of the discussion was set by the opening remarks of the Secretary-General Ban Ki-moon who began by “You have recognized that in a world in which both the global population and resource constraints are growing, development finance needs a reboot.”
The ground rules for financing the post 2015 sustainable development goals (SDGs) which are to be soon launched at the UN General Assembly in New York in September 2015, were set in Addis Ababa. These formed an outline for new development framework and the future of humanity.
Status of Development funds currently
Amid final set of negotiations, development practitioners, governments, private and public development funders as well as other members of the international community are looking for ways to bridge the gap between the ambitious goals and the available resources for funding.
Up till now domestic investment has been the pillar, accounting for more than the third of all available funding in developing countries whereas foreign aid has just been 0.4% of the available funds. But will the domestic funds suffice for the ambitious SDGs which will come into force by the end of 2015, is something which only time will tell us.
At the Conference on Financing for Development
During the three day conference there were deliberations on the importance of domestic tax resources along with stronger crack down and constrain on multinational companies indulging in tax avoidance and evasion.
But there is an increasing need to raise private finance and international public finance. Many member states also advocated for a global tax body arguing it would help developing states to earn more through tax revenues.
Addis Ababa was definitely a historic moment for the international community but we need to find innovative ways, instruments to target larger investment for the SDGs success. Global economic governance needs to be streamlined for taking up these ambitious goals urgently.
For equitable development is it necessary that leaders also keep in mind the volatile nature of economies in different parts of the world whether it’s the euro crisis, economic slowdown, civil war like situation in some middle east and African countries which are clamouring and diverting our attention more than often from the real development focused agenda.
The developing world needs a sustained and consistent approach to get the desired results it has been aiming through these sustainable development goals.