The world’s poorest countries are being forced to prioritize debt payments over crucial investments, hindering progress towards their sustainable development goals, warned Achim Steiner, United Nations Development Programme (UNDP) administrator, at the Hamburg Sustainability Conference. He emphasized that many least developed countries, priced out of financial markets, are drawing down spending to avoid defaulting on debt.
Countries such as Ghana, Sri Lanka, and Zambia have already defaulted, while others face rising borrowing costs due to global interest rate hikes. Steiner stressed that boosting financing is critical to meeting sustainable goals, calling for a revamp of the international financial system.
World Bank President Ajay Banga echoed Steiner’s concerns, noting that multilateral lenders alone cannot bridge the $4 trillion gap needed to meet the goals. He called for private sector involvement, highlighting the World Bank’s efforts to increase risk insurance for renewable investments in developing nations. German Chancellor Olaf Scholz added that achieving these goals requires public-private partnerships and standardized financing frameworks.
Related Readings:
