Major financing for development (FfD) innovations have long been initiated by the UN. Special drawing rights (SDRs), ‘0.7 per cent of national income’ for official development assistance (ODA) and debt relief were all conceived in the UN around half a century ago.
The financialization of recent decades has undermined the mobilization and deployment of adequate financial resources to accelerate sustainable development and address global warming.
During the 1990s, the UN warned against new threats to economic stability. Some were due to volatile private capital flows and speculation, encouraged by deregulated financial markets, enabled by the IMF despite its Articles of Agreement.
By contrast, the UN has insisted on ensuring policy space for more effective development strategies by Member States. It has also urged macroeconomic policies to support long-term growth, technological progress and economic diversification.
The UN Secretariat has also promoted orderly sovereign debt relief. But Member States have long complained IFIs were shirking their mandates to provide financial stability and adequate long-term development finance.
Jomo Kwame Sundaram