FfD4: A Key Opportunity to Rethink Global Finance for Development

 As the world prepares for the Fourth International Conference on Financing for Development (FfD4), there is growing urgency for bold financial reforms. With worsening climate change, rising geopolitical tensions, and deepening inequality—especially across the Global South—the need for transformative financial action has never been greater. FfD4 offers a critical platform for all UN member states and global financial institutions to reshape the global financial system in line with the Sustainable Development Goals (SDGs).

A Growing Financial Burden on the Vulnerable

Many developing countries, especially the most vulnerable, are being forced to cut public spending on essential services like education and health just to keep up with debt payments. According to the UN, the financing gap to meet the SDGs has ballooned to over $4.2 trillion per year in developing countries since the COVID-19 pandemic. This puts immense pressure on these nations and threatens progress on development and climate goals.

What Should Be Demanded at FfD4?

FfD4 is a key moment for the Global South to demand meaningful changes, including:

  • Debt cancellation for the poorest and most vulnerable countries.

  • UN-led reforms to create a fairer international financial system that tackles both short-term fiscal pressures and long-term inequality.

  • Tax system improvements to broaden the tax base and increase global cooperation on tax through a UN-led global tax body.

  • The introduction of a new international tax law to curb illicit financial flows.

Holding Wealthy Nations Accountable

Many developed countries have yet to fulfill their promise to provide 0.7% of their Gross National Income (GNI) as Official Development Assistance (ODA). These funds are critical for least developed countries (LDCs), including Nepal, to invest in health, education, and climate action. FfD4 should push for:

  • Reaffirmation of ODA commitments,

  • Predictable and transparent aid aligned with national priorities,

  • Better use of blended finance with clear environmental, social, and governance (ESG) standards.

Fixing the Debt Crisis

A fair global debt resolution system is long overdue. FfD4 should demand:

  • A timely sovereign debt workout mechanism,

  • Wider use of debt-for-development or debt-for-climate swaps,

  • Fulfillment of the $100 billion climate finance pledge, including funding for the Loss and Damage Fund, with at least 50% directed toward climate adaptation.

A Chance to Rebalance the Global Financial System

Under UN leadership, the global financial system must be redesigned to serve everyone, not just a few. Key proposals include:

  • Reallocating Special Drawing Rights (SDRs) to low-income countries,

  • Reforming the IMF and World Bank to give developing countries a stronger voice,

  • Making the financial system more inclusive and equitable.

Gender, Technology, and Peace

FfD4 should also focus on:

  • Gender-responsive financing, ensuring equality in budgets, taxes, and access to services,

  • Bridging the global digital divide by investing in equitable technology access,

  • Promoting peace through coordinated humanitarian, development, and peacebuilding strategies,

  • Ensuring that civil society and youth are part of the decision-making process.

Regional Priorities Matter

FfD4 is a chance for each region to voice its needs:

  • Asia-Pacific (including Nepal): Prioritize infrastructure, digitalization, and social protection,

  • Africa: Focus on climate justice, debt relief, and SDR access,

  • Latin America: Push for tax justice, natural asset valuation, and debt sustainability.

Nepal’s Priorities at FfD4

Nepal, as an LDC and climate-vulnerable country, faces unjust debt burdens. At FfD4, Nepal should:

  • Advocate for debt cancellation and debt swaps for education and climate action,

  • Call for the reallocation of unused SDRs from wealthy countries,

  • Push for MDB reforms for easier access to concessional, climate-focused finance,

  • Demand climate finance in the form of grants, not loans,

  • Support a UN tax convention and fight against illicit financial flows,

  • Seek support for domestic resource mobilization and better tax compliance,

  • Promote gender-responsive budgeting, peacebuilding, and climate-resilient development,

  • Emphasize investment in renewable energy, green infrastructure, and green jobs for youth.

A Political Moment with Transformative Potential

FfD4 is more than just a technical summit—it is a political opportunity to address deep-rooted structural injustices that block inclusive development. As the 2030 deadline for the SDGs approaches, aligning global finance with equity, justice, and sustainability is critical.

With strong political will and global cooperation, FfD4 could be the turning point that shapes a financial future focused on people, planet, and prosperity.

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