The Financing for Development Conference approves the Seville Commitment for an “inclusive and equitable” global financial system

Eduardo González The plenary session of the Fourth International Conference on Financing for Development (FFD4) approved by acclamation this Monday the Seville Commitment, the political declaration that calls for strengthening the global financial system to make it “more inclusive, equitable, and resilient.” From this Monday until July 3, Seville will host the Fourth International Conference on Financing for Development (FFD4), one of the major international initiatives of Pedro Sánchez's government. It brings together government leaders, along with international and regional organizations, financial institutions, businesses, civil society, and the United Nations system with the aim of strengthening international cooperation. With more than 60 world leaders present, more than 200 official delegations representing 170 countries, 60 international organizations, and nearly 400 events planned, this is the largest international summit held to date in Spain, according to Moncloa. Under the premise that "no country can solve the challenges facing the world alone," the Seville Commitment calls for reforming the global financial system to make it "more inclusive, equitable, and resilient" and for granting a more prominent role to the United Nations and multilateral financial institutions. One of the central points of the Commitment is priority attention to vulnerable countries, such as the least developed countries, landlocked countries, small island states, African countries, and those affected by conflict, according to the UN. The objective, it continues, is the eradication of poverty, gender equality, the fight against corruption, and the promotion of peaceful and just societies. The action plan of this commitment is structured around five main pillars: strengthening national public revenues through tax reforms, improving transparency, gender-responsive and sustainable budgeting, and the digitalization of tax systems. It also encourages greater private sector participation, facilitating access to financing for small businesses, promoting responsible investments, and the use of instruments such as green bonds and blended finance. Finally, the Seville Commitment includes concrete proposals to mobilize more international resources: increasing official development assistance, promoting South-South cooperation, reforming multilateral development banks, and mechanisms to reduce the cost of capital. It also proposes measures to combat illicit financial flows, recover corrupt assets, and ensure transparency in corporate ownership. This ambitious package aims to close financing gaps and build a fairer, greener, and safer future for all. Felipe VI During the inauguration of the FFD4, King Felipe VI stated that "this conference must be a success because international cooperation is one of the cornerstones of a multilateral world, the ultimate embodiment of the values that drive it, especially in the current historical context, when many certainties are dissolving and many fears and uncertainties are taking shape," the King stated during the event's inauguration. "The Sustainable Development Agenda adopted in 2015, five years after the date we set for its implementation, remains fully relevant, because global challenges still cannot be postponed," the King continued during the event, held at the Conference and Exhibition Center (FIBES) in Seville. “At a time when the challenges are enormous and there is a clear lack of funding, the only possible response is effectiveness,” he warned. “The dizzying transition we are experiencing toward a new geopolitics cannot and should not lead to a wholesale amendment to the world of law, solidarity, and human dignity; to the world contained, among other texts, in the Universal Declaration of Human Rights and the Charter of the United Nations,” the King stated. “We must be very vigilant to prevent that from happening: despite the difficulties, we must persist on the long path of multilateral diplomacy,” he added. “Let us make the Seville Conference a new milestone on the development agenda. We owe it to the generation of our parents and grandparents, and also to that of our children and grandchildren, and we owe it to all those who, in our own time, lack the voice and the energy to cry out for a better and more just world,” he concluded. Pedro Sánchez For his part, the President of the Government, Pedro Sánchez, warned that “billions of lives depend on the decisions we make these days: on whether we choose ambition over paralysis, solidarity over indifference, and courage over expediency.” “We cannot fall into complacency. Two out of five families live in countries that must invest more in paying off their debt than in the education or health of their children,” he warned. “This is not the path to sustainable development. This is the path to frustration. And also to injustice,” he added. For this reason, he asserted, the Conference is an opportunity “to raise our voices against those who try to convince us that rivalry and competition will determine the future of humanity.” Addressing those who oppose international cooperation, Sánchez affirmed that “in a fragmented world, we need more than ever an inclusive and strengthened multilateralism, with the United Nations at its center,” he added. “There is no north and south. There is only one humanity that needs shared solutions to common challenges. That is why today I want to reclaim the value of empathy, an inherent asset of multilateralism, which allows us to understand the world by putting ourselves in the shoes of others,” he concluded. António Guterres For his part, UN Secretary-General António Guterres stated that the objective of the Conference must be “to repair and restart the engine of development and accelerate investment at the scale and speed needed,” because “two-thirds of the SDG targets are lagging behind; achieving them requires an investment of more than four trillion dollars a year.” “With debt service amounting to $1.4 trillion a year, countries need and deserve a system that lowers the cost of borrowing, facilitates fair and timely debt restructuring, and prevents debt crises in the first place,” Guterres emphasized. Therefore, the Conference must "repair the global debt system, which is unsustainable, unfair, and unaffordable" and "triple the lending capacity of multilateral development banks and reorient special drawing rights to increase lending capacity and help developing countries boost investment." Costa and Von der Leyen The President of the European Council, António Costa, lamented that “ten years ago, the world made a commitment to its own future: the Sustainable Development Goals,” but “a decade later, we are still far from the target,” Costa lamented. This is largely due to the fact that “financing for development remains clearly insufficient,” he continued. Therefore, he emphasized: “Our message is clear: the European Union will continue to fight for human dignity and the future of the planet. We must mobilize all resources to achieve the Sustainable Development Goals.” Costa emphasized that “together, we provide 42% of global development aid, a total of €95.9 billion in 2023,” and it is estimated that “more than $300 billion in debt has been restructured or canceled by European Union countries in the Paris Club.” In this regard, Costa emphasized that the European commitment is firm, and that the EU has therefore worked "side by side" with the rest of its international partners to promote the Seville Commitment, approved by acclamation at the conference. The President of the Council also warned of the need to "involve the private sector more and better" and to "lay the foundations to optimize the mechanisms for addressing the debt problem" and defended a "fairer, more inclusive international financial architecture, adapted to current challenges." "Multilateralism is not going through its best moment," but "it resists and is alive," he concluded. For her part, the President of the European Commission, Ursula von der Leyen, recalled that "last year, global development aid reached just over $200 billion," a figure that falls far short of the trillions needed to cover the annual investment required to achieve the SDGs. To close this gap, she stated, "new ways of mobilizing much more financing are required," a central objective of the Seville Commitment. The head of the European Commission emphasized that “the European Union provides 42% of global development aid, a commitment of which Europe is proud and which it remains steadfast.” Furthermore, she welcomed the fact that “new donors are joining this cause” and proposed combining forces to “create joint investment programs that leverage each other's strengths to achieve maximum impact.” She cited the recent agreement reached with India to jointly invest in third countries and announced that “we will extend this offer to other emerging donors that share these objectives.” Von der Leyen explained that “domestic tax revenue is the most sustainable source of financing for essential services such as health and education” and that “a fair tax system is essential to attracting private investment.” Therefore, she stressed the importance of “implementing the international agreement on corporate tax rules reached by the G20 and the OECD,” which “will increase revenue in developing economies and promote tax equity, ensuring that everyone pays their fair share.” The President also highlighted the need for “the private sector to actively participate in this fight.” In this regard, she mentioned the EU's Global Gateway program, which “channels private capital toward transformative development projects that generate local growth and employment.” In its first three years, she stated, the Global Gateway has mobilized “almost €180 billion in investments for partner countries” and is on track to “exceed its initial target of €300 billion over seven years.” She also announced that “further progress will be presented at the next Global Gateway Forum, which will take place in Brussels in October.” During her speech, Von der Leyen reaffirmed Europe's commitment to multilateralism in an uncertain global context, asserting that “Europe is ready to invest and innovate, and can be counted on to support international cooperation.” She also expressed her support for the reform of the World Trade Organization (WTO), led by Ngozi Okonjo-Iweala, whom she thanked for her leadership and offered her support. Seville Platform for Action On another note, Pedro Sánchez and António Guterres presented the Seville Platform for Action, one of the main milestones of the UN's Fourth International Conference on Financing for Development, which will mobilize coalitions of countries and other stakeholders to launch joint initiatives in the field of sustainable development. Through this Platform, "countries, international organizations, the private sector, and civil society have been invited to build coalitions and launch innovative, transformative initiatives with a measurable impact" to advance the financing for development agenda, Sánchez stated. The President of the Government made this announcement during the special event "Implementing the Seville Platform for Action," held within the framework of the FFD4 and attended by the First Vice President and Minister of Finance, María Jesús Montero; the Third Vice President and Minister for the Ecological Transition and the Demographic Challenge, Sara Aagesen; the Minister of Foreign Affairs, José Manuel Albares; and the Minister of Economy, Trade, and Business, Carlos Cuerpo. According to the UN, the Platform's objective is to bring together countries, organizations, businesses, and other stakeholders to achieve concrete and measurable progress in addressing global financial and development challenges. To this end, it will serve as a basis for compiling concrete proposals that will establish clear and achievable actions with specific outcomes, a timeline, and defined funding. Any group, from governments to charities, businesses, and universities, has had the opportunity to present, through this Platform, an innovative plan that supports the UN Sustainable Development Goals. All approved commitments will be published online, and progress will be tracked and reported on through future UN reviews and meetings. The objective of the Seville Platform for Action, according to Pedro Sánchez, is to promote "a strategic mobilization of alliances with a practical roadmap of concrete solutions and impactful initiatives that develop the Seville Commitment," the document approved this Monday during the FFD4 plenary session. To date, he stated, the Platform has already received around 130 initiatives that "demonstrate the vitality, creativity, and commitment of the entire international community to address the challenges that hinder sustainable development and provide solutions." "Thanks to the Platform, the Seville Commitment is born accompanied by 130 concrete and measurable actions that will support its development from day one," he added. President Sánchez emphasized that, in addition to those related to global health, Spain has presented several initiatives to ensure fairer international taxation of large fortunes, to ensure greater impact for development aid, to prevent debt from drowning countries in the event of natural disasters, health crises, or food crises, and to promote debt forgiveness accompanied by certain commitments. Furthermore, he added, "we are going to join a coalition of countries that will work for a greater contribution from the aviation sector to just transitions and climate resilience, through a specific tax on business class tickets and private jets."

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