World gathers to finance sustainable development of the future

“We’re delighted that the new agenda for development financing has an ambitious approach, but that it also reflects the challenges the world faces. At a time of geopolitical tensions and reduced development assistance, it is vital to strengthen synergies between development assistance, promotion and trade policy, promote public-private cooperation and mobilise private investment in sustainable development. Sweden has already taken important steps in this direction and this approach is now also generating international impact. We must also broaden the donor community. More countries with major resources must take greater responsibility, contribute to global sustainable development, and finance the climate transition,” says Ms Janse.

The debt situation requires immediate measures

The debt situation in many developing countries is displacing much-needed investment in sustainable development. Sweden welcomes the ambitious package around debt issues, including measures for strong growth and sustainable debt levels, and more financing options for sustainable development. 

The new framework also highlights the importance of effective and transparent tax systems for increased tax collection, strengthening of partner countries’ capacity within trade and continued modernisation of the international financial system, with the World Bank and the IMF as key actors. To address environmental and climate challenges, commitments need to be guided by the 2015 Paris Agreement, for example. The Sevilla Commitment will be a crucial piece of the puzzle in the implementation of the New Collective Quantified Goal on Climate Finance. 

Support for reforms and local ownership

To grow sustainably, developing countries’ economies need strong and just societal systems. Sweden wants to see countries that accept support implement important reforms – such as fighting corruption, strengthening the rule of law, protecting human rights and working for gender equality. This is a condition to attract investment and create long-term growth. 

Sweden also helps by offering guarantees to share risk with companies that want to invest in developing countries. This provides small and medium-sized enterprises in these countries with access to capital, which in turn creates jobs and reduces poverty. Furthermore, Sweden is sharing its knowledge and expertise, for example in how to build functioning tax systems. 

Swedish development assistance in transformation

Sweden is one of the few countries that meets the UN goal to spend at least 0.7 per cent of GDP on development assistance – in 2025, Sweden’s development assistance will total SEK 56 billion. But while this assistance is important, a major commitment from the private sector is also needed. Swedish companies are at the forefront in this respect and their ability to innovate contributes to driving forward the green and digital transition globally.