Seville: The Philippines, through the Department of Finance (DOF), has issued a call to the international community for urgent reform of the international financial architecture to provide tailored support to middle-income countries facing rising global challenges.
According to Philippines News Agency, the call was made by International Finance Group Undersecretary Joven Balbosa during the 4th International Conference on Financing for Development (FFD4) held from June 30 to July 3 in Seville, Spain. The conference convened heads of state, ministers, and senior officials from various sectors to discuss reform financing at all levels and tackle financing challenges hindering the achievement of the Sustainable Development Goals (SDGs).
The conference concluded with the adoption of the Compromiso de Sevilla, a commitment to a renewed global financing framework that directly affects developing countries. This framework highlights the critical role of multilateral development banks (MDBs) and calls for enhanced international development cooperation, expanded technical support, increased mobilization of private capital, strengthened debt sustainability, and comprehensive governance reforms.
Representing the Group of 77 (G77) and China, and the Like-Minded Group for Middle-Income Countries (LMG-MICs), the Philippines, through its Permanent Mission to the United Nations in New York, engaged in negotiations on the outcome document. Balbosa emphasized the importance of addressing the unique challenges faced by middle-income countries and advocated for a UN system-wide response plan for these nations.
Balbosa also highlighted the need to reform the international financial architecture by enhancing developing countries' representation, reviewing policies on surcharges and special drawing rights (SDRs), and increasing quota shares. He stressed the importance of support that goes beyond gross domestic product (GDP) for a more inclusive approach to international cooperation and development finance access.
The DOF supported the establishment of a UN intergovernmental process aimed at creating a more inclusive and equitable global debt architecture that prioritizes participation and transparency while considering national development priorities. Balbosa further emphasized the significance of Official Development Assistance (ODA), urging MDBs to increase financing capacity, improve lending terms, and provide grants and technical assistance.
Climate finance was also identified as a crucial support mechanism, with Balbosa stating it should not detract from ODA. He expressed optimism for the implementation of the Compromiso de Sevilla, highlighting sustainable development as essential for global peace, stability, and prosperity.
