UN Member States adopted the outcome document of the 2018 FfD Forum.
Governments encourage fiscal management for domestic resource mobilization to be a priority for all types of development cooperation.
The outcome requests the UN Inter-agency Task Force on Financing for Development, as part of its 2019 report, to further discuss climate and disaster resilience in development financing.
26 April 2018: During the 2018 FfD Forum, ministers and high‑level representatives adopted conclusions and recommendations on financing for development (FfD) and means of implementation for the 2030 Agenda for Sustainable Development. The outcome document emphasizes the critical role of science, technology and innovation (STI) and the need to invest in infrastructure, including transport, energy, water and sanitation for all, for achieving the SDGs.
The FfD Forum took place from 23-26 April 2018, in New York, US. The Forum’s conclusions and recommendations will feed into the 2018 session of the UN High-level Political Forum on Sustainable Development (HLPF), convening in New York, US, in July.
By the text, governments note the upturn in some areas of the world economy, which has underpinned progress in the policy agenda across all the action areas of the Addis Ababa Action Agenda (AAAA) on FfD, while recognizing that the recovery has not been shared evenly across and between countries and regions. They emphasize the need to address the potential effects of rising global interest rates, leading to a reversal of capital flows, to the disadvantage of developing countries and increased debt distress. They further note that long-term sustainable investment, especially in countries most in need, remains insufficient to meet the SDGs, noting with concern that private participation in infrastructure has fallen each year since the AAAA was adopted in 2015.
Through the FfD outcome, Member States commit to three key actions:
- Facilitate the use of all sources of financing, including innovative finance, at all levels, while being mindful of fiscal and debt sustainability;
- Work to align incentives of both public and private actors with long-term sustainable development; and
- Operationalize national financial frameworks into investable projects and pipelines.
Recognizing the importance of fiscal management to enhance domestic resource mobilization, governments encourage this to be a priority for all types of development cooperation, including official development assistance (ODA) and technical support. They further encourage efforts by national actors to mitigate transfer mispricing and trade misinvoicing by multinational corporations in order to strengthen the tax base in host countries.
By the text, Member States welcome the increase in ODA in real terms in 2016, and the fact that the decline in ODA to the least developed countries (LDCs) has been reversed. However, they note, ODA to small island developing States (SIDS) remains very concentrated in a few states, despite the increasing frequency, volatility and intensity of weather-related hazards to which many of them are exposed. The FfD outcome also recognizes that ODA remains a main source of external finance for many landlocked developing countries (LLDCs) and remains important for a number of middle-income countries (MICs).
Governments further recognize that it is “critical” that disaster risk reduction (DRR) measures, “with due consideration to prevention,” are incorporated into development assistance programmes and infrastructure financing, in line with the Sendai Framework for DRR 2015-2030. They request the UN’s Inter-agency Task Force on Financing (IATF) for Development, as part of its 2019 report, to further discuss climate and disaster resilience in development financing to ensure the sustainability of development results.
Member States also express their concern that cryptocurrencies are increasingly being used for illicit activities, and in this regard encourage Member States and other relevant organizations to consider taking measures to prevent and counter their illicit use. [FfD Forum Outcome] [Meeting Summary, 24 April] [FfD Forum Website]