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.

Advertising

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

One year on: EU-Canada trade agreement delivers positive results

3 ways blockchain can revolutionize global supply chains

EU strengthens cooperation with Ethiopia

A Sting Exclusive: “Europe needs decisive progress for stronger cybersecurity”, EU Commissioner Gabriel highlights from Brussels

Here’s a reason to feel cheerful – the world is full of Good Samaritans

IMF: Sorry Greece it was a mistake of 11% of your GDP

How wealthy people transmit this advantage to their children and grand children

Gaza probe finds ‘reasonable grounds’ Israeli forces committed international human rights violations

Who should pay for workers to be reskilled?

The European Sting @ Mobile World Congress 2014, Creating What’s Next for the World. Can EU Policy follow?

Do all you can to resolve climate change ‘sticking points’ UN chief urges South-East Asian leaders, in Bali

Khashoggi murder trials must public and meet international standards, UN expert urges

The EU approves a new package of budget assistance to the Republic of Moldova to support rule of law and rural development reforms

Trade in counterfeit goods costs UK economy billions of euros

How migrants who send money home have become a global economic force

The European giant tourism sector in constant growth

From books to bikes: 4 unexpected gender gaps

These are the 3 key skill sets workers will need to learn by 2030

The Ukrainian crisis to destabilize Europe and the world for a long time

Budgetary Control Committee asks for stronger measures to protect EU spending

How cities around the world are handling COVID-19 – and why we need to measure their preparedness

MEPs react to breaches of human rights in Moldova, Burundi and Somalia

Coronavirus: MEPs call for solidarity among EU member states

Insurer CEOs Reveal Marketing Strategies that Communicate the True Value of Insurance Products & Services to the Customer

Yemen bus attack just the latest outrage against civilians: UN agencies

UN film festival encourages young people to promote peace, dialogue and empathy

Philippe de Backer of ALDE at European Business Summit 2015 stresses: “Reinvent your business”

UN chief condemns attack targeting international forces in northern Mali

These are the best MBAs if you want to be an entrepreneur

A young student discusses the determinants of migration in the European Union

Brexit: European Commission recommends the European Council (Article 50) to endorse the agreement reached on the revised Protocol on Ireland / Northern Ireland and revised Political Declaration

EU to lead one more fight against climate change at G7 summit

A Sting Exclusive: “Cybersecurity Act for a cyber-bulletproof EU”, by EU Vice-President Ansip

Cross-border cooperation: the EU Interreg programme celebrates 30 years of bringing citizens closer together

Huawei answers allegations about its selling prices

The movement of anti-vaccers: taking humanity back 200 years

Conditions deteriorating alarmingly in Yemen, warns senior UN official

What washing your hands can teach you about global change

The dangers of data: why the numbers never tell the full story

Talent, not technology, is the key to success in a digital future

Antitrust: Commission opens investigation into Broadcom and sends Statement of Objections seeking to impose interim measures in TV and modem chipsets markets

Digital IDs and the Digital Economy: the (still) missing link?

UN human rights chief denounces grave ‘assaults’ on fundamental rights of Palestinian people

How video games can reunite a divided world

On the detention of children in the United States of America

Financial services are changing. Here’s how

Catalan Pro-Independence vote: how many hits can Brussels sustain at the same time?

UN investigates systematic sexual violence across South Sudan

The 100-year climate catastrophe of Mont Blanc

Human rights on film: International festival celebrates mobile phone films for a cause

The Eurogroup protects Germany and blames others

IMF: When high yield goes boom

FROM THE FIELD: A mountain of indigenous knowledge in Peru

Security Council must ‘come together’ to address the plight of children trapped in armed conflict, says UN envoy

“Our house is on fire.” 16 year-old Greta Thunberg wants action

How the Irish people were robbed by banks, the Commission and their own government

Monday’s Daily Brief: WFP mulls ‘last resort’ Yemen aid suspension, top peacekeeping awardee announced, abuzz over Bee Day, Ebola threat ‘very high’

The drive for quality education worldwide, faces ‘mammoth challenges’

CDC advises against gatherings of 50 or more – Today’s COVID-19 updates and analysis

The importance of pre-departure training for a better understanding of global health issues

More Stings?

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