Development finance
The persisting lack of financing for sustainable development is worsening in 2025. With ODAOfficial Development Assistance (ODA) are resource flows to countries and territories which are: (a) undertaken by the official sector; (b) with promotion of economic development and welfare as the main objective; (c) at concessional financial terms (implying a minimum grant element depending on the recipient country and the type of loan). In addition to financial flows, technical co-operation is also included -—
– ‒
- –
—--—
– ‒
- –
—--—
– ‒
- –
—--—
– ‒
- –
—-. falling for the first time in five years (down 7.1% in 2024), and a stagnant overall FDIForeign Direct Investment (FDI) is an investment involving a long-term relationship and reflecting a lasting interest and control by a resident entity in one economy (foreign direct investor or parent enterprise) in an enterprise resident in an economy other than that of the foreign direct investor (FDI enterprise or affiliate enterprise or foreign affiliate) -—
– ‒
- –
—--—
– ‒
- –
—--—
– ‒
- –
—--—
– ‒
- –
—-. to developing economies, with declines in 2024 observed in Latin America and the Caribbean (-12%) and Asia (-3%), as well as a drop of SDG-related investments (-26%), heads of state and government gather at FfD44th International Conference of Financing for Development this year to discuss how to reshape the global financial architecture for sustainable development. South-South cooperationBroad framework of collaboration among countries of the Global South in the political, economic, social, cultural, environmental and technical domains -—
– ‒
- –
—--—
– ‒
- –
—--—
– ‒
- –
—--—
– ‒
- –
—-. SSC involves diverse domains in the global South, both financial (e.g., grants and concessional loans) and non-financial (training, technical cooperation, humanitarian assistance) modalities and is guided by principles such as horizontality, solidarity, respect for sovereignty, country ownership, complementarity, mutual benefit, equity, transparency, and accountability -—
– ‒
- –
—--—
– ‒
- –
—--—
– ‒
- –
—--—
– ‒
- –
—-. Data on related issues like trade and FDI among the global South are also provided by UNCTAD., grounded in peer-to-peer partnerships, knowledge exchange and non-financial support, plays a critical role in sustainable development for all, reinforcing other mechanisms, especially through mutual support, cooperation and knowledge sharing. The Bridgetown Covenant -—
– ‒
- –
—--—
– ‒
- –
—--—
– ‒
- –
—--—
– ‒
- –
—- strongly emphasized the essential contribution of ODA, private investment, and South-South and triangular cooperationBroad framework of collaboration among countries of the Global South in the political, economic, social, cultural, environmental and technical domains -—
– ‒
- –
—--—
– ‒
- –
—--—
– ‒
- –
—--—
– ‒
- –
—-. SSC involves diverse domains in the global South, both financial (e.g., grants and concessional loans) and non-financial (training, technical cooperation, humanitarian assistance) modalities and is guided by principles such as horizontality, solidarity, respect for sovereignty, country ownership, complementarity, mutual benefit, equity, transparency, and accountability -—
– ‒
- –
—--—
– ‒
- –
—--—
– ‒
- –
—--—
– ‒
- –
—-. Data on related issues like trade and FDI among the global South are also provided by UNCTAD., in addressing the challenges related to development finance, including mounting debt of the most vulnerable economies.
Approaching UNCTAD 16, redefining international support to developing countries is high on the agenda. The following chapters address related challenges:
- Bringing South-South cooperation into focus: the journey to measurement
- With falling foreign direct investment, investment-promoting regimes increasingly more important to reach the SDGs
- Costlier debt servicing undermines the achievement of the SDGs
- Measuring illicit financial flows for stronger domestic resources
Early pilots showcase non-financial support is an essential South-South cooperation modality.
Investments in SDG-related sectors dropped 26% globally in 2024.
The external debt of developing economies reached $11.7 trillion in 2024.
Without reliable data, government efforts risk remaining ineffective or inadequate.
References
Donec tincidunt vel mauris a dignissim. Curabitur sodales nunc id vestibulum tempor. Nunc tortor orci, sodales nec eros eget.
Donec tincidunt vel mauris a dignissim. Curabitur sodales nunc id vestibulum tempor. Nunc tortor orci, sodales nec eros eget.
Donec tincidunt vel mauris a dignissim. Curabitur sodales nunc id vestibulum tempor. Nunc tortor orci, sodales nec eros eget.
Donec tincidunt vel mauris a dignissim. Curabitur sodales nunc id vestibulum tempor. Nunc tortor orci, sodales nec eros eget.
Donec tincidunt vel mauris a dignissim. Curabitur sodales nunc id vestibulum tempor. Nunc tortor orci, sodales nec eros eget.