Financing for Sustainable Development Report 2024: UN

GS-3 Mains : Economy

Short Notes or Revision Notes 

Question : Evaluate the recommendations provided in the Financing for Sustainable Development Report 2024 for addressing the urgent financing challenges and achieving the SDGs by 2030.

Sustainable Development Goals (SDGs)

• Established by UN as a blueprint for global prosperity.
• 17 goals adopted by all UN members in 2015.
• Aim to address poverty, health, education, inequality, economic growth, climate change, and environmental protection.

The Report’s Message

• Sustainable Development Crisis:The world faces a crisis due to financing challenges.
  • Rising geopolitical tensions, climate disasters, and global cost-of-living issues threaten progress on SDGs.
  • Nearly 600 million people could live in extreme poverty by 2030 (UN estimate).
• The Finance Divide:Developed countries pay less interest on debt than developing countries.
  • Debt burdens and high borrowing costs hinder developing countries’ responses to crises.
  • Many lack affordable financing or are in debt distress.
• Widening Financing Gap:The gap for development financing has grown to $4.2 trillion annually.
  • This is a 50% increase from pre-pandemic estimates.
• Weak Enabling Environments:Policies and regulations don’t incentivize SDG investment.
  • Public spending isn’t fully aligned with SDGs.
  • Private investors lack incentives for sufficient SDG/climate action investments.
• Closing Window:The time to achieve SDGs and prevent climate catastrophe is short.

Recommendations

• Urgent Action Needed:A large-scale investment push is crucial to achieve SDGs by 2030.
• Four Key Actions:
  • Close financing gaps (public & private) for SDGs and climate action.
  • Address policy and institutional gaps by reforming international institutions.
  • Rebuild trust and credibility gaps domestically and internationally.
  • Develop and finance new pathways for sustainable development.
• Reforming Existing Systems:The current international financial system is outdated.
  • The report proposes a new system to handle crises, increase SDG investment, and strengthen multilateral development banks.

Conclusion

• The report highlights the urgent need for increased investment in sustainable development.
• We must close financing gaps, reform institutions, and create new development pathways.