The multilateral support system is becoming increasingly important and relevant in the development landscape as global financial architecture reforms continue. However there are challenges including expansion and fragmentation, funding quality and the need to invest in the system and financialisation.
Experts made the observations in a webinar jointly organised by the Centre for Policy Dialogue (CPD) and the Organisation for Economic Co-operation and Development (OECD), an international organisation, on Sunday.
CPD Executive Director Fahmida Khatun chaired, moderated, and made the welcome remarks, while Abdoulaye Fabregas, an economist from the architecture and Analysis Unit of the OECD Development Co-operation Directorate, presented the keynote paper.
The solutions could include, maximising contributions to high-impact funding mechanisms; safeguarding the system's capacity to support the poorest; ensuring adequate funding for core strategic functions; achieving effectiveness at scale through better coordination and coherence; and engaging with emerging donors on multilateral development finance.
Fahmida said, “In 2015, the global leaders committed to lift humanity from the grip of poverty, hunger and deprivation, while working to save the planet and vowed that no one would be left behind. Although there has been some progress on the Sustainable Development Goals (SDGs), on the whole, the progress is unsatisfactory.”
The report mentions that progress on most SDGs has either slowed considerably or even fallen below the level which was established in 2015. So, years of advancement in sustainable development are being undone.
“Poverty, hunger, and inequality have worsened and human rights are increasingly endangered, raising the risk of millions living marginalised. Meanwhile, the growing threats of climate change, biodiversity loss, desertification, pollution and other environmental crises affect our natural world and the potential for future development.
“Given this, closing the SDG financing gap in developing countries is essential to prevent the lasting sustainable development divide and wide inequality among the countries. The leaders have recognised that efforts to close the financial gap are needed to stop the furthering of the trust in international relations,” she added.
Sabyasachi Saha, associate professor, Research and Information System for Developing Countries (RIS), India, emphasised on domestic resource mobilisation. He said, “The developing countries are losing more resources than received. Inequality is going to rise so development finance is important.”
“Private capital is not flowing, it will be challenging. We have to think about improving our credit rating. There are structural issues which should be addressed,” he added.
Rishikesh Ram Bhandary, assistant director, Global Economic Governance Initiative, Boston University Global Development Policy Center said, “Revisit the development finance as climate change becomes a trajectory. Concessional finance for developing countries is crucial.”
Muhammad Asif Iqbal, managing director, the Social Policy and Development Centre (SPDC), Pakistan emphasised on regional collaboration saying, “South Asian nations should maintain a partnership approach for effective financial system as a whole.”
Research, Institute of Policy Studies of Sri Lanka (IPS) Director Nisha Arunatilake, South Asia Watch on Trade, Economics and Environment (SAWTEE) Programme Coordinator Dikshya Singh, CPD Research Fellow Syed Yusuf Saadat were also present among others.
