Ten years after countries adopted the SDGs, development faces formidable headwinds: slowing global growth, the threat of a trade war, and repeated global shocks from climate and conflict.
But the most unsettling challenge facing developing countries is the debt crisis.
Borrowing is critical for development.
It provides a means for governments to invest boldly in a better future for their people.
It is especially critical at a time when all countries are required to undertake one-off generational investments to green their economies and build 21st century digital infrastructure.
But today, borrowing is not working for development.
Over two-thirds of low-income countries are either in debt distress or at high risk of it.
3.4 billion people live in countries that spend more on interest payments than on health or education.
The debt crisis is a silent crisis in two respects.
First, the crisis doesn’t impact the lives or economies of those in advanced economies.
The immediate effects of the crisis are contained and do not threaten the stability of global financial markets.
Second, among global policymakers, there is a striking reluctance to acknowledge the crisis for what it is, perhaps driven by the increasingly unlikely hope that the problem will solve itself if interest rates came down.
However, I’m pleased to report that, thanks to many of you, this is now starting to change.
Over the last several months, we’ve seen the launch of several bold initiatives – the African Leaders Debt Relief Initiative; the Expert Review on Debt, Climate and Nature; the Jubilee Commission; and the Secretary-General’s Expert Group on Debt – that are making crisis increasingly hard to ignore.
And through the Seville conference and its outcome document, and the ongoing work of the South African G20, this crisis is finally being seen and heard.
These efforts have laid bare the shortcomings of our debt architecture, and the harms they are causing in developing countries.
They also identify actions that can arrest the debt crisis and enable debt to fulfil a supportive role in countries’ development success.
Now that we are finally getting the attention of policymakers, we still face the challenge of compelling action.
Let me propose three things we, as a community, must do moving forward.
First, consolidate our message and asks.
We have a rich set of analyses and recommendations but must find ways of bringing these together.
This includes borrowing language and recommendations from the Seville outcome document and bringing it forward into the outcome documents of this year’s G20 and COP30.
Second, everyone must do their part.
For instance, Spain has shown outstanding leadership on promoting debt swaps and debt pauses.
The UN stands ready to advance member states’ call for the creation of a platform for borrowers to share experience, build capacity and coordinate approaches and strengthen borrower countries’ voices.
Third and finally, we must continue to expand our coalition.
This includes winning the support of the leading board members at the IFIs.
It also means mobilizing civil society, as envisaged by the Jubilee campaign.
With these three steps, I believe we can break the cycle of debt together, and usher in a new era of debt sustainability for all countries.
Thank you.