World leaders adopted a political declaration last Monday in which they recognize that Sustainable Development Goals will not be achieved without a massive boost to necessary investment to achieve fair and equitable energy, food, digital transitions, and to transform education and social protection in developing countries. This was reported by the press agency of the United Nations within the framework of the 78th General Assembly of the organization that was held in New York City.
This new document renews the commitment to immediate and collective climate action to build a sustainable, inclusive, prosperous and resilient world. The focus of the new declaration is development financing, for which it urges the allocation of 500 billion dollars annually.
The head of state of Spain, Pedro Sanchez, together with the president of the European Council, Charles Michel, led the event “Towards a new international financial architecture “. The heads of State and Government of Argentina, Bangladesh, Cape Verde, Ghana, Rwanda, Senegal, and other representatives of France, Costa Rica, the United Arab Emirates and Chile were present at the meeting. In addition, the managing director of the IMF and the presidents of the European Investment Bank and the African Development Bank participated, along with other senior officials from the World Bank, the CAF, the Inter-American Development Bank and the United Nations.
The Spanish president has identified three key priorities to address in order to multiply the resources available for sustainable financing. First of all, the reform of multilateral development banks to increase the volume of loans on concessional terms to address global challenges and the needs of the most vulnerable, including in middle-income countries. Secondly, it has highlighted the need to explore innovative tools and approachesoptimizing the use of the Special Drawing Rights received in 2021. Finally, he highlighted the need to carry out actions that address the debt crisis, so that the restructuring processes are carried out more quickly, and that middle-income countries are included. In this sense, the acting President of the Government has highlighted that debt-for-climate swaps and debt suspension clauses for natural and climate disasters can also be useful tools for the governments of the countries most vulnerable to the impacts. of climate change.
Another of the central points under discussion was investment as a way out of the current crisis experienced by most low- and middle-income countries, especially in Latin America and Africa. Legal certainty is essential to increase productive investments. He Observatory of Multinationals in Latin America (OMAL) defines the ‘legal security’ as the “certainty that legal subjects have that their legal situation can only be modified through previously established procedures that will guarantee their rights. This is very important to highlight, since investors often see their projects threatened by political instability and recurring changes to the legal and tax framework. Today it is one of the difficulties that several nations are going through, where investment is stagnant due to lack of confidence. This is reversed with clear rules of the game that guarantee the viability of the investment project in the medium and long term.
To increase employment levels, a legal structure is necessary that protects investments and generates new business opportunities in strategic sectors for economic and social development.
Honorary BRICS+ Ambassador to Argentina
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