Addis Ababa: Ethiopia’s Permanent Representative to the United Nations Ambassador Tesfaye Yilma told ENA that reforming International Financial Institutions (IFIs) is critical for developing countries to achieve the Sustainable Development Goals.
The Permanent Representative of Ethiopia to the UN is in Addis Ababa to participate at the Preparatory Committee for the Fourth International Conference on Financing for Development (FfD4), which aimed at accelerating progress towards achieving SDGs.
Ambassador Tesfaye stressed the need for inclusive, responsive, and accessible multilateral financial institutions that give developing countries a greater voice in decision-making.
The SDGs are part of political commitment by the global community back then in 2015, he pointed out.
For him, financial institutions are banks, supposed to make their own reform.
He warned that especially developing countries will not achieve the SDGs without reforming these institutions.
‘Unless we change certain things in terms of fin
ance, we are definitely going to miss the SDGs targets. So before it’s too late, the global community has to show some solidarity, has to learn together, reform the International Financial Institutions (IFIs) and mobilize sources–the finance that’s necessary and meet the targets of the SDGs.’
According to him, the global financial institutions reform has been a very serious agenda at the UN and for the global community as a whole, particularly for the developing world.
‘Ethiopia as part of a group of developing countries is going along those newly formed demands from the developing countries.’
The country has integrated the SDGs into its national development plan, with over 60 percent of the national budget allocated to sectors aligned with these goals.
Ethiopia is implementing a 10-year development plan, Ambassador Tesfaye said noting that all sector components are defined by the SDGs targets.
For him, Ethiopia’s day to day development work is actually informed by the SDGs. It’s a very important indica
tor for the country’s development works.
‘Our national budget structure explains it all. SDG means the budget that we allocate to education, health, energy, infrastructure development and for climate action. All sectors are formed by the SDG targets and goals. So ours is a pro-poor investment that addresses poverty in a very straightforward manner,’ he said.
If you go to the SDGs 17 targets and goals, you will find them all in the target areas. So the Ethiopian development movement is basically defined by the SDGs.
However, the country, like many others, faces significant financial constraints in realizing its development aspirations, he noted.
‘Then again, we need to get the financial support from the global community, from the IFIs, from bilateral donors, and this agenda has pushed forward; the financing component. That’s the most important challenge facing the SDGs now.’
The United Nations has identified the reform of the global financial system as a key priority and UN Secretary-General António Guter
res has proposed 500 billion USD annual stimulus package to accelerate progress towards the SDGs.
‘We think it is possible to mobilize that amount of money every year and with that kind of mobilization, every developing country and every country can have the chance to meet these SDG targets,’ Tesfaye said.
Ethiopia will also benefit as part of the global community from that kind of stimulus.
In alignment with the demand for reform, Tesfaye underscored the significance of diversifying funding avenues.
‘Diversification is the most important aspect and a very helpful approach to financing,’ pointing from private finance, Official Development Assistance (ODA), the multilateral financial institutions, sovereign wealth funds … Wherever they may be available, we should be able to access them all towards achieving our development goals.’
There is no ideological commitment towards financing as far as we are concerned. We access capital wherever it’s available, he added.
Source: Ethiopian News Agency