It’s Time to Finance Our Future and ‘Change Course’

“We’re here in Sevilla to change course,” the UN chief told world leaders on Monday, calling on them to grasp a once-in-a-decade opportunity to close a $4 trillion financing gap facing developing countries in meeting sustainable development goals – and to build a better world for all.

António Guterres issued his clarion call, noting that sustainable development, powered by international cooperation, is now facing “massive headwinds.”

Addressing the opening session of the 4th Financing for Development Conference (FFD4) in baking-hot Sevilla, Spain – basking in record-high June temperatures – the Secretary-General noted that multilateralism itself is also feeling the heat, while trust between nations and institutions is fraying.

The world is on fire, shaken by inequalities, climate chaos, and raging conflicts: “Financing is the engine of development and right now, this engine is sputtering,” he told the conference, attended by more than 50 world leaders, over 150 nations, and around 15,000 delegates.

“As we meet, the 2030 Agenda for Sustainable Development – our global promise to transform our world for a better, fairer future – is in danger.”

Some two-thirds of the ambitious Sustainable Development Goals (SDG) targets agreed in 2015 are significantly off track – hence the staggering $4 trillion investment needed to turn things around.

“We are here in Sevilla to change course. To repair and rev up the engine of development to accelerate investment at the scale and speed required,” said Mr Guterres.

He described the outcome known as the Sevilla Commitment, adopted on Monday – without the United States, which pulled out of the process earlier this month – as a “global promise” to low-income nations to lift them up the development ladder.

First, he called for resources to begin flowing rapidly at home to spur sustainable growth, and for richer countries to honour their pledge under the accord to double aid to poorer countries. This includes tripling the lending capacity of Multilateral Development Banks and introducing innovative solutions to unlock private capital.

Second, he urged the fixing of the “unsustainable, unfair and unaffordable” global debt system. Right now, poorer countries are spending around $1.4 trillion just servicing their vast debts in the form of interest payments. Among the innovations proposed is a new borrowers’ forum to ensure fairer debt resolution and action.

Third, he called for reforming the global financial architecture, with major shareholders playing their part so that it empowers every country. “We need a fairer global tax system shaped by all, not just a few.”

The current crisis of affordability and stalled development is “a crisis of people,” he continued, one that leaves families hungry, children unvaccinated, and girls left out of education.

“This conference is not about charity. It’s about restoring justice and facilitating the ability of all people to live in dignity,” said Mr Guterres.

“This conference is not about money – it’s about investments in the future we wish to build together.”

King Felipe of Spain spoke just ahead of the official opening, telling delegates that the multicultural city of Sevilla welcomes the world “with open arms.”

He said a new roadmap would emerge that is based on what is “concrete, tangible and actionable.”

The conference must be a success, he emphasised, because cooperation is one of the fundamental pillars of the multilateral world and “the ultimate embodiment of the values that sustain it – especially at this particular point in history, where many certainties are melting away and many fears and uncertainties are taking shape.”

Spain’s President Pedro Sánchez told delegates, “our time is now and our place is here.” Millions of lives will depend on the choices made in Sevilla and going forward.

We must choose “ambition over paralysis, solidarity over indifference, and courage over convenience,” he continued, adding that the eyes of the world are on this hall to see what we are ready to do together. “In the face of this historic challenge, we must prove our worth.”

Sevilla was “the New York of the 16th century” in diplomatic terms, he told delegates – a cradle of globalism – and we must all do justice to that legacy today.

Li Junhua, Secretary-General of the conference and head of the UN's Department of Economic and Social Affairs (DESA), said the week in Sevilla is a key moment to mobilise the resources necessary to build a just, inclusive, and sustainable future.

The UN effort to finance development has been anchored in multilateralism and solidarity – but today, the entire framework is under “profound stress.”

He said never has sustainable development been so tested, but the pact made in Sevilla puts people back at the centre.

“Sevilla is not an end point; it is a launch pad for a new era of implementation, accountability and solidarity.” UNDESA is ready to support all nations in translating the commitment into international action, he underscored.

President of the UN General Assembly, Philémon Yang, told delegates that above all, “we need leadership to guide the world forward into a brighter, more prosperous future for everyone, everywhere.”

He said the Sevilla framework would renew global partnership for the decade ahead and focus on the debt burden that is crippling the developing world.

President of the UN Economic and Social Council, Bob Rae, said trust between countries had to be strengthened, because its absence “creates chaos.”

“Most of all, I want to congratulate states for bringing forward the ambition and deepening engagement between financial institutions.”

The week represents a real commitment to action, he added.

Ajay Banga, President of the World Bank Group, told delegates that ending poverty remains his key mission and that the surge in population underway in developing countries requires resources “at an unprecedented scale and pace.”

He said everyone knows that governments, philanthropies, and institutions are unable to meet every projection or promise – which is why the private sector is essential to the Sevilla Agreement so that capital can flow.

Mr Banga added that the Bank’s recent reforms are about being a better partner to the private sector and government clients.

Improving response time, boosting capital, and building systems for growth are key – but much more is needed to deliver for the next generation.

Ngozi Okonjo-Iweala, Director-General of the World Trade Organization, said the conference was taking place at a time of unprecedented difficulty.

After decades of positive contributions, the global trading system has now been “severely disrupted,” with exports hampered by unilateral tariff measures and policy uncertainty. As a result, the WTO has sharply downgraded growth forecasts.

Further tariff barriers on 9 July – the deadline set by the US administration – will only worsen the contraction in global trade.

She reminded delegates that the WTO has advocated for the least developed nations and Africa to be exempted from tariffs, “so we can better integrate them into the world trading system, not further exclude them.”

She said the Sevilla Agreement rightly recognises international trade as an engine of development.

“We therefore need to bolster stability and predictability in global trade,” she added, through action at many levels that can grow national resources through exports.

Nigel Clarke, Deputy Managing Director of the International Monetary Fund (IMF), called for broadening the tax base, building strong financial management systems, coordinating support, and addressing debt more sustainably.

“Many countries continue to struggle with high interest costs,” he said, urging the international community to improve debt restructuring processes.

Through its capacity development efforts, the Fund is equipping members to chart their own paths and is also providing financial support when needed most, he added.