The Philippines, through the Department of Finance (DOF), has called on the international community for urgent reform of the international financial architecture to provide tailored support to middle-income countries amid rising global challenges.
In a statement Wednesday, the DOF said International Finance Group Undersecretary Joven Balbosa made the call during the 4th International Conference on Financing for Development (FFD4) on July 2.
The FFD4 was held in Seville, Spain from June 30 to July 3.
It gathered heads of state, ministers, as well as senior officials from international organizations, civil society, the business sector, and local authorities to discuss reform financing at all levels, as well as address financing challenges preventing the achievement of the Sustainable Development Goals (SDGs).
The Conference adopted the Compromiso de Sevilla or the Sevilla Commitment, which establishes a renewed global financing framework that directly impacts developing countries.
It underscores the critical role of multilateral development banks (MDBs) and calls for enhanced international development cooperation, expanded technical support, greater mobilization of private capital, strengthened debt sustainability, and far-reaching governance reforms.
The Philippines, through its Permanent Mission to the United Nations in New York, represented the Group of 77 (G77) and China, and the Like-Minded Group for Middle-Income Countries (LMG-MICs) in the negotiations on the outcome document.
“[W]e welcome the commitment in the Compromiso de Sevilla to address the specific challenges of middle-income countries, including by looking forward to a UN system-wide response plan for MICs,” Balbosa said.
“We join calls to urgently reform the international financial architecture through enhanced representation of developing countries, review of policies on surcharges and SDRs [special drawing rights], and increases of quota shares, among others,” he added.
Balbosa cited the need for support to go beyond gross domestic product (GDP) for a more inclusive approach to international cooperation and access to development finance.
“To address the middle-income trap, we need tailored support for MICs that addresses their specific challenges beyond the simplistic income categorization. We will engage with the Secretary-General’s High-Level Expert Group to develop such indicators and welcome Spain’s initiative on a Beyond GDP Global Alliance,” he said.
The DOF also supported the establishment of a UN intergovernmental process for a more inclusive and equitable global debt architecture that ensures participation and transparency, taking into account national development priorities.
Balbosa likewise highlighted the significance of Official Development Assistance (ODA) and called on MDBs to increase their financing capacity and maximize the impact of the country projects they are supporting while providing better and concessional lending terms, as well as grants and technical assistance.
He also stressed the need for climate finance to be readily available as an added support, and it should not come at the cost of ODA.
“The Philippines looks forward to the implementation of the Compromiso de Sevilla. Let us work to deliver on the promise of leaving no one behind, as sustainable development is the key to greater peace, stability, and prosperity for all,” he said. (PNA)
