By Vibhu Mishra
Facing a staggering $4 trillion annual financing gap for development and mounting trade wars, top UN officials on Monday called for urgent action to rescue the Sustainable Development Goals and revive international cooperation.
Speaking at UN Headquarters in New York, Secretary-General António Guterres, General Assembly President Philémon Yang and Economic and Social Council President Bob Rae stressed the need for more resources and a global financial overhaul.
Without an effective response, they stressed, the world risks falling even further behind on ending poverty, fighting climate change, and building new sustainable economies.
They were addressing the ECOSOC annual forum on financing for development, which follows last week’s World Bank and International Monetary Fund (IMF) Spring Meetings where global growth, trade tensions and the rising debt burden in developing countries were front and centre.
Everyone loses in a trade war
“This year’s ECOSOC Forum comes at a pivotal time,” Guterres told delegates, warning that global cooperation itself is under threat. He pointed to rising trade tensions as a major risk, noting that while fair trade is a clear example of the benefits of international collaboration, the surge in trade barriers poses a “clear and present danger” to the global economy – as seen in recent downgrades to global growth forecasts by the IMF, the World Trade Organization (WTO), and UN economists.
“In a trade war, everybody loses – especially the most vulnerable countries and people, who are hit the hardest,” he said.
We must shift into overdrive
Guterres highlighted how many donors are pulling back from aid commitments while soaring borrowing costs drain public investments, putting the SDGs “dramatically off track.”
“With just five years to reach the SDGs, we need to shift into overdrive,” he stressed, urging countries to deliver bold outcomes at the upcoming Fourth International Conference on Financing for Development, in Seville.
“Against this turbulent background, we cannot let our financing for development ambitions get swept away.”
Crushing debt burdens
ECOSOC president Bob Rae echoed these concerns, emphasising that over three billion people live in countries where governments spend more on interest payments than on health or education.
“We desperately need a more affordable debt architecture – it’s that simple,” he said, calling for urgent reforms that would allow countries a fair chance to repay what they owe while investing in their futures. He also sounded the alarm over rising trade barriers – citing recent moves by major economies, like the United States, to impose new tariffs.
“Trade is not a four-letter word,” Rae said, “it is a positive way for countries to exchange goods and services and emerge from poverty.”
He urged countries not to see trade as a zero-sum game – where there are only winners and losers – and embrace fair, open trading systems as a path to shared prosperity.
Calls for reform
General Assembly president Philémon Yang underscored the consequences of rising debts and shrinking fiscal space.
In more than 50 developing countries, governments now spend over 10 percent of their revenues on debt servicing – and in 17 of them, over 20 percent – a clear warning sign of default, according to UN economists.
“Our inability to reform the international financial architecture is severely restricting capital access,” Yang warned, stressing that closing the financing gap – now estimated at over $4 trillion annually – is critical to achieving the SDGs.
“Time is of the essence. Let us use this ECOSOC Forum to bridge divides, build trust, and lay the foundation for success.”
Looking ahead to Seville
As negotiations continue towards an agreed outcome in Seville, Secretary-General Guterres highlighted three priority areas – tackling unsustainable debt, strengthening multilateral development banks and unlocking new streams of sustainable finance.
He called for mobilizing more domestic resources, innovative financing solutions, better controls on illicit financial flows and stronger partnerships with the private sector.
ECOSOC president Rae added that the conversation must move beyond declarations to concrete, measurable action.
“We need innovation, creativity and partnerships that deliver lasting and transformative impact,” he said.
The Fourth International Conference on Financing for Development – to be held from 30 June to 3 July in Seville, Spain – represents a critical opportunity to rebuild the global financial system to unleash the investments urgently needed to achieve the SDGs.
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