Why is it in the news?
- United Nations Department of Economic and Social Affairs has released Financing for Sustainable Development Report 2024.
Key highlights
- Financing gap for developing countries estimated at $2.5 trillion to $4 trillion annually.
- Developing countries face significant disparities in access to long-term and contingency financing.
- Policy, regulatory, and tax frameworks not adequately aligned with Sustainable Development Goals (SDGs).
- Systemic risks such as the Covid-19 pandemic and increased frequency of disasters strain national financing frameworks.
- Average GDP growth rates in developing countries declined to just over 4% annually between 2021 and 2025.
- Median debt service burden for Least Developed Countries (LDCs) reached 12% in 2023.
- Other concerns include digitization-induced risks and rising geopolitical tensions.
Recommendations
- Building tax capacity to enhance tax revenue for SDG delivery.
- International development cooperation to mobilize additional financial resources, such as a new approach to blended finance focused on sustainable trade and responsible business conduct.
- Intensified action to address debt challenges faced by developing countries.
- Enhancing coherence between trade, investment, and sustainable development.
- Funding for data and statistical systems to generate actionable insights for advancing SDGs.
