Growing Financing Gap Hinders SDG Progress: PM Oli

Prime Minister KP Sharma Oli has stressed the urgent need to bridge the widening financing gap as Least Developed Countries (LDCs) face an annual shortfall of 40% of GDP to meet the Sustainable Development Goals (SDGs).

"We are all aware that the staggering financing gap of USD 4.3 billion continues to grow," the Prime Minister stated while co-chairing the Summit of the Future Interactive Dialogue titled "Transforming Global Governance and Turbocharging the Implementation of the 2030 Agenda for Sustainable Development" in New York on Sunday.

PM Oli urged development partners to swiftly meet the target of allocating 0.7% of gross national income (GNI) as official development assistance (ODA) to developing countries and 0.2% to LDCs. He also called for the implementation of the SDG Stimulus, the fight against illicit financial flows, and enhanced capacity building for domestic resource mobilization.

PM Oli urged collective action to fast-track the 2030 agenda’s implementation. "We must rejuvenate multilateralism and strengthen our cooperation through the transformation of global governance," he remarked.

He pointed out that the compounding crises of COVID-19, escalating conflicts, and climate change have severely undermined progress toward sustainable development, resulting in rising poverty, hunger, and inequality.

The prime minister highlighted that unequal trade benefits, market concentration, high interest rates on external borrowing, and growing debt servicing obligations have reduced the fiscal space and financial sustainability of many developing countries.

Oli further argued that the current global financial system, established decades ago, struggles to address modern challenges such as poverty, climate change, and inequality, and is failing to meet the specific needs of those left behind.

He noted that the digital divide continues to expand, posing significant challenges for countries seeking to leverage technology to transform their economies.

"We must pragmatically reflect on why we are failing to meet our development aspirations and deepen multilateral cooperation," PM Oli said.

He also stressed the importance of stronger representation for developing countries in global decision-making processes, stating that reforms in this area would enable international financial institutions (IFIs) to better address their needs and respond to global crises.

Additionally, PM Oli called for comprehensive debt relief initiatives, tailored to the specific circumstances of developing and least-developed countries like Nepal. "Urgent debt relief and long-term debt restructuring for highly indebted nations, alongside the establishment of a fair and transparent mechanism for debt resolution, are essential," he added.

The prime minister also underscored the potential of technology in addressing various challenges and stressed the urgency of closing the digital divide to regain momentum toward the SDGs.

He emphasized the need to support low-income countries by improving access to reliable digital connectivity, building robust digital infrastructure, reducing connectivity costs, and expanding global digital networks.

PM also Oli urged global leaders to uphold their climate commitments, calling for increased adaptation and mitigation funds, and the full operationalization of loss and damage funds to address the disproportionate impacts of climate change on vulnerable countries and communities. -- RSS