UNDP Development Chief calls for action on debt, climate and inequality as developing countries face volatile global outlook

Increased financing and bold leadership are needed urgently to tackle climate change, rising inequality, and surging debt, as increased risks and vulnerabilities threaten economic growth globally, said United Nations Development Programme (UNDP) Administrator Achim Steiner at the World Bank and International Monetary Fund (IMF) spring meetings.

“We still have a global financial and economic system that is not responding to the needs for the scale and type of finance that is required for sustainable development,” he said in his statement on behalf of the United Nations, to the 99th Meeting of the Development Committee. He also emphasized this during the Meeting of Finance Ministers and Central Bank Governors of the G20, where he represented the UN. “Bold climate action could trigger US$26 trillion in economic benefit by 2030, create more than 65 million jobs, and help 700,000 people avoid premature death. We need smart policies and investments now to bridge growing gaps not just in income, but in dignity, opportunity, and quality of life.”

By 2050, financing transition to a low-carbon and climate-resilient economy will require investment of at least US$60 trillion. Steiner said that public finance clearly won’t be enough and it must be leveraged to mobilize more private finance.

Steiner also addressed the looming debt crisis many developing countries face. IMF-World Bank analyses find 40 percent of Least Developed Countries (LDCs) and low-income countries face debt distress or high risk of debt distress, particularly Sub-Saharan Africa.

He also spoke about the need to address soaring inequality in a number of areas, “Inequalities are prevalent in access to quality education, health, and technologies as well as vulnerability to shocks, among other areas. We also see persistent gender disparities across the world. Inequality limits people’s choices and opportunities and engenders political and social tensions and global inefficiencies.”

This year, UNDP’s Human Development Report will focus on the critical issue of inequality in human development.

Alongside the Spring Meetings, UNDP and the World Bank signed two landmark agreements April 12 to strengthen and streamline cooperation.

“The World Bank is a critical partner for UNDP,” Steiner said. “In the last two years, our vital partnership in Yemen has created emergency employment for 344,550 people, helping 2.4 million people from vulnerable households across the country buy essentials to survive and nearly 3.4 million access goods and services, such as water, food, health care, education, and roads.”

UNDP and the Asian Development Bank (ADB) also signed a five-year memorandum of understanding to accelerate progress towards sustainable development in Asia and the Pacific.

Original source: UNDP
Published on 13 April 2019