Vulnerable Countries Risk Being Left Behind in Rapidly Changing Financial Landscape – Report
NEW YORK 9 April 2020 – The 2020 Financing for Sustainable Development Report of the Inter-Agency Task Force, launched today, finds that the international economic and financial systems are not only failing to deliver on the Sustainable Development Goals (SDGs), but that there has been substantial backsliding in key action areas. In this environment, which has been worsened drastically by the impact of COVID-19, many countries—and especially least developed countries (LDCs), landlocked developing countries (LLDCs), small island developing States (SIDS), and other vulnerable countries—will not be able to achieve the SDGs by 2030.
The report says that the global community must come together to enhance cooperation and take concerted, forceful, and swift action to combat the impact of the COVID-19, maintain economic and financial stability, promote trade and stimulate growth. Policy responses need to be designed to help those most in need so that the burden does not fall on those least able to bear it.
Among other measures the report calls on donors to immediately reverse the decline in ODA, particularly to LDCs. Official bilateral creditors should immediately suspend debt payments from LDCs and other low-income countries that request forbearance, and other creditors should consider similar steps or equivalent ways to provide new finance. Financial instruments, highlighted throughout the report, should be implemented and utilized to reduce climate risks and raise resources for SDG investments.