Fight against climate change and poverty will fail without overhaul of global financial system, says major UN report

World Bank/ Dominic Chavez Residents living in a slum in Dhaka, the capital of Bangladesh.

This article is brought to you in association with the United Nations.


A major new UN-led report, involving more than 60 international organizations, warns that a comprehensive overhaul of the world’s financial system is necessary, if governments are to honour commitments to tackle critical issues, such as combatting climate change and eradicating poverty by 2030.

The 2019 Financing for Sustainable Development Report, says that achieving the financing needed to implement the 2030 Agenda for Sustainable Development – the UN’s plan of action for peace, planet and prosperity – is not just about finding additional investment, but also building supportive financial systems, and global and national policy environments, which are favourable to sustainable development.

At a press conference on Thursday, following the release of the report, Deputy Secretary-General Amina Mohammed said that it delivers a “sobering message”, showing low wage growth, rising inequality and debt distress, and stagnating aid levels.

Climate change, said Ms. Mohammed, continues to threaten sustainable development in all regions, and, despite international commitments to limit a rise in global temperatures, greenhouse gas emissions actually rose by 1.3 per cent during the course of 2017.

The report also shows that it is becoming increasingly difficult to create conditions to bring about positive change. The reasons include rapid changes in technology, geopolitics and climate, and the inability of national and multilateral institutions to adapt.

In addition, increasing inequality has hit many people’s faith in the multilateral system and, in his foreword to the report, António Guterres, Secretary-General of the United Nations, says: “Our shared challenge is to make the international trading and financial systems fit for purpose to advance sustainable development and promote fair globalization.”

Recommendations for a sustainable economy, financial system

Despite the many problems and roadblocks outlined in the report, the international organizations involved found that interest in sustainable investment is growing in the finance community, with some three-quarters of individual investors showing interest in how their financial behaviour affects the world.

The report also contains a number of recommendations for ways to bring about a more sustainable global economy and financial system. These include a shift to long-term investment, and an inclusion of sustainability as a central risk factor; a revamp of the multilateral trading system; and addressing the concentration of markets into the hands of a small number of powerful companies, which are not limited by national borders.

The Deputy Secretary-General noted that encouraging longer-term credit ratings, carbon taxes, and meaningful disclosure on the social and environmental costs of doing business, are all examples of incentives aligned with sustainable development goals.

Ms. Mohammed continued with a call for better regulation to manage financial technology, commonly referred to as fintech. Whilst fintech has allowed more than half a billion people to gain access to financial services, enabling progress on the 2030 Agenda in developing countries, regulators are struggling to keep pace and, if fintech is allowed to grow in an unsupervised manner, it could put financial stability at risk.

In a statement, Zhenmin Liu, Under-Secretary-General for Economic and Social Affairs and Chair of the Task Force that issued the report said there is a major opportunity to overcome bottlenecks in sustainable financing in 2019, but insisted that “the responsibility rests with governments to recommit to multilateralism, and to take policy actions that will create a sustainable and prosperous future.”

Between April 15 and April 18, the UN will discuss the findings of the report at the Economic and Social Forum (ECOSOC) Forum in Financing for Development, where Member States agree on measures necessary to mobilize sustainable financing.

the sting Milestone

Featured Stings

Can we feed everyone without unleashing disaster? Read on

These campaigners want to give a quarter of the UK back to nature

How to build a more resilient and inclusive global system

Stopping antimicrobial resistance would cost just USD 2 per person a year

Forty-two countries adopt new OECD Principles on Artificial Intelligence

UN, world leaders, condemn Sri Lanka terrorist attacks targeting churches, hotels, which leave more than 200 dead

Deep chasm still divides Athens and Brussels; can Eurozone use the nuclear arm of liquidity against Greece?

More than 80% of adolescents worldwide aren’t getting enough exercise

Force used against protestors in Gaza ‘wholly disproportionate’ says UN human rights chief

EP leaders call for negotiations on upgraded Transparency Register to continue

The race for Driverless vehicles: where is the industry heading?

Entrepreneur India Convention 2016: Bringing together Entrepreneurs, Investors, Startups and SMEs

We finally have a life-saving vaccine for Ebola

What will it take for the world’s third-largest economy to empower women?

We can build an inclusive workplace, and it starts with empathy

Here’s what keeps CEOs awake at night (and why it might be bad news for your next job)

The EU moulds a new compromise for growth and financial sustainability

These 5 industries can drive digital financial inclusion

Could the fourth wave of globalization help to end epidemics?

North Macedonia President, credits dialogue and diplomacy for setting a decades-long ‘name dispute’

7 steps to becoming a ‘CEO Academy’

‘The green economy is the future,’ UN chief says in Beijing, urging climate solutions that strengthen economies, protect the environment

Humanitarian emergency in Venezuela was central debate of the EuroLat plenary

How tomorrow’s buildings will make you – and the planet – healthier

State aid: Commission approves €3.2 billion public support by seven Member States for a pan-European research and innovation project in all segments of the battery value chain

On their epic journeys, migratory birds connect nations and inspire people, UN says on World Day

Climate change could be making forests shorter – this is how

Putting a price on carbon will help New York state achieve a clean energy future

Why the evolution of blockchain reliability is critical to protecting your digital assets

“Financial crisis will not happen in China!”, the Chinese Premier underlines from Switzerland; the Sting reports live from World Economic Forum 2015 in Davos

‘Regional security and integration’ in Central Africa under threat, Security Council warned

These are the world’s healthiest nations

What makes a good healthcare professional?

8000 young people in the EP in Strasbourg: “a breath of fresh air for EU democracy”

IMF: Sorry Greece, Ireland, Portugal we were wrong!

Draghi tells the EU Parliament his relaxed policies are here to stay

These charts show where the world’s refugees came from in 2017 – and where they’re heading

‘Huge’ stakes, ‘daunting’ job to tackle gender-based violence, UNICEF chief tells ground-breaking conference

Banks promise easing of credit conditions in support of the real economy

State aid: Commission approves € 1.6 billion Polish scheme to compensate companies for damages suffered due to coronavirus outbreak and provide liquidity support

COVID-19 reminds us of the crucial role nurses play

The “Legend of the Sun” wishes you Happy Chinese New Year 2015 from Brussels

EU cracks under the weight of its policy on the Ukraine-Russia nub

This company grows crops inside, stacked on top of one another

Can the national and age groups pockets of unemployment cause irreparable damages to Eurozone?

Gig workers among the hardest hit by coronavirus pandemic

Why AI will make healthcare personal

How green investment will help Latin America and the world fight climate change

Coronavirus crisis: “Commission will use all the tools at its disposal to make sure the European economy weathers the storm”

At Davos, UN chief urges ‘big emitters’ to take climate action

This is why many young people have no access to proper education

Bioethics: how to recover trust in the doctor-patient relationship

WEF Davos 2016 LIVE: “CO2 is not the problem, it is the symptom”, the pilots who crossed the world using solar energy cry out from Davos

How the technology behind deepfakes can benefit all of society

Back to the Basics: Primary Healthcare

Privatization as a symptom of health inequity

Driving structural change through global value chains integration

4 ways the US can take the lead in the fight against human trafficking

The most unlikely innovators are changing ICT for development – it’s time we took notice

ISIL continues to pose a ‘serious challenge’ worldwide – UN counter-terror chief

South Eurozone countries threatened by rising borrowing cost and expensive euro

Israeli security forces’ response to Gaza protests ‘a recipe for more bloodshed’, says UN expert

World Bank downgrades global growth forecasts, poorest countries hardest hit

As human genome editing moves from the lab to the clinic, the ethical debate is no longer hypothetical

More Stings?

Advertising

Speak your Mind Here

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s