In financing SDG, private capital will do well to make sure that such investments are sustainable for countries too and that means, reconciliation of their commercial goals with the creation of public goods, she said.
With the Covid-19 pandemic widening the annual sustainable development goal (SDG) financing gap from $2.5 trillion to $3.9 trillion in developing countries, Finance Minister Nirmala Sitharaman on Saturday said achieving the SDGs by 2030 is ‘becoming difficult and more costly’.
The resilience of the global economy was being tested in the face of multiple headwinds which are amplifying the challenge of maintaining growth with inclusivity, Sitharaman said addressing the CII Roundtable on Reviving Growth with Inclusivity: Galvanising Private Capital to support Governments, Multilateral Institutions at Marrakech (Morocco).
“However, as nations try to steer their respective economies, and brace for an uncertain future, India stands out as a beacon of hope and resilience for the world,” she said.
As part of the Delhi Declaration, it was highlighted that at the midway point to 2030, the global progress on SDGs is off-track with only close to 12% of the targets on track.
Working towards the advancement of SDGs is a global public good. The financing requirements are immense which calls for a global collaborative effort across stakeholders, the minister said.
“Efforts and concrete financing commitments of all – official governments, multi-lateral institutions, development finance institutions and most importantly private sector – are paramount and these will have to complement each other for this shared global priority,” Sitharaman said.
In financing SDG, private capital will do well to make sure that such investments are sustainable for countries too and that means, reconciliation of their commercial goals with the creation of public goods, she said.
“Finally, I am confident that the MDBs reform process emanating from the G20 deliberations will also provide a unique opportunity for them to maximize investments into developing countries, including through increased co-investments with the private sector which can leverage this unique opportunity to increase its footprint in funding the SDGs and join hands with public institutions to meet the SDG goals by 2030.”
In its first report in July, the expert group set up by the G20 Indian Presidency has estimated an additional spending requirement of $3 trillion per year by 2030 to address urgent global challenges and SDGs. Of the $3 trillion annual requirement, $2 trillion could come from domestic resource mobilization while the remaining $1 trillion in additional external financing.
Source:financialexpress.com