A key requirement for achieving the 2030 Agenda for Sustainable Development is an increase of $500 billion in extra funding from the world’s most developed nations each year according to the United Nations (UN). As of now, the global financial system has failed to adequately cushion the effects of current crises impacting the Global South the most: the COVID-19 pandemic, the crisis in Ukraine, and the ongoing climate emergency.
“Polycrises are compounding shocks for developing countries today – in large part because of an unfair global financial system that is short-term, crisis-prone, and further exacerbates inequalities,” warned UN Secretary-General Antonio Guterres at the launch of the Sustainable Development Goals Stimulus.
Through investments in renewable energy, universal social protection, decent job creation, healthcare, quality education, sustainable food systems, urban infrastructure, and digital transformation, the SDG Stimulus aims to counterbalance unfavorable market conditions faced by developing countries. UN experts believe that by combining concessional and non-concessional finance, as well as self-reinforcing mechanisms, it would be possible to increase financing by $500 billion per year.