Distinguished Co-facilitators,
Excellencies,
Distinguished Delegates,

I have the honor to deliver this statement on behalf of the Group of 77 and China. Allow me to commend the Co-Facilitators for their diligent efforts in preparing the zero draft of the outcome document and for outlining the roadmap for negotiations.

The Fourth International Conference on Financing for Development presents a crucial opportunity to address the significant challenges faced by developing countries, particularly the widening SDG financing gap, mounting debt burdens, and systemic inequities in the global financial and trading systems.

As we move forward, we must ensure that the outcome document delivers ambitious, implementable and transformative commitments, putting development at the center of all of our efforts to support financing for sustainable development, including by reaffirming that the eradication of poverty is the greatest global challenge and an essential prerequisite for achieving sustainable development. while ensuring that no one is left behind. We should also ensure that people are at the center of development, as they are the fundamental drivers of shared prosperity for current and future generations.

Co-Facilitators,

Allow me to share some initial points and reactions that the Group wishes to highlight regarding the zero draft. These reflections represent the preliminary views of our membership and are intended to contribute constructively to this important process.

Addressing systemic issues

The Group appreciates that the draft highlights the reform of international financial architecture, which is critical to ensure it is fit for purpose to better respond to the present and future challenges. We are of the view that FfD4 shall call for accelerating the reform of international financial architecture, while enhancing the voice and representation of developing countries in international economic decision-making, norm-setting, and global economic governance. This includes ensuring their full participation in the decision-making process of various institutions as well as in leadership roles to ensure IFA reforms better serve the needs and interest of developing countries. We also need to ensure that the reform helps the provision of resources to support developing countries with affordable and long-term concessional finance. Additionally, we call for enhancing macroeconomic policy coordination and making joint efforts to keep the international financial market stable and prevent negative spillover of domestic monetary policy adjustments.

Domestic Public Resources

The Group takes note of the proposed commitments to aligning fiscal systems with sustainable development, including progressive taxation and combating illicit financial flows. However, capacity-building support must be strengthened to enable institutional reforms and the digitalization of tax systems to broaden the tax base and integrate the informal sector.

National development banks must be empowered with external financing and tailored regulatory frameworks to mobilize long-term financing aligned with national development strategies. In countries where national development banks do not exist, FfD4 should call for external seed capital to establish them. We also urge stronger measures to address illicit financial flows, with enhanced international standards and support for asset recovery and return.

International Trade as an Engine for Development

International trade is critical to inclusive growth, but barriers remain for developing countries. We stress the importance of strengthening the multilateral trading system based on the principles of equity, transparency, and special and differential treatment, with the World Trade Organization at its core.

Developing countries must be supported to benefit fully from global value chains, particularly in downstreaming natural resources, empowering MSMEs, capacity-building, and enhanced trade facilitation. We stress the importance of promoting an open global economy and supporting the liberalization and facilitation of trade and investment. We reiterate our rejection of unilateralism and protectionism.

Additionally, we call on multilateral development banks to enhance access to trade finance and urge the elimination of unilateral coercive measures that undermine free and fair trade. Unilateral environmental measures with cross-border implications and other forms of green protectionism must be suspended without delay. FfD4 should emphasize the need for cooperative multilateral solutions to be developed within the frameworks of the WTO and UNFCCC, in accordance with legal commitments under the UNFCCC, its Paris Agreement, and the Kyoto Protocol.

Domestic and International Private Business and Finance

With respect to the chapter on Domestic and International Private Business and Finance, the Group notes with appreciation that many of the points it put forward in its submission are reflected in the zero draft. We welcome the recognition of the need for systemic change at both national and global levels, as well as the emphasis on strengthening the global enabling environment for long-term private investment in sustainable development. We underscore that scaling up foreign direct investment must be pursued for all developing countries.

We also appreciate the inclusion of MSMEs in the zero draft and emphasize that enhancing their access to credit and risk management tools, particularly for women entrepreneurs and smallholder farmers, remains critical. Given the continuing importance of remittances for many developing countries, we believe the text could be further strengthened by incorporating more ambitious and operational actions. Additionally, we take note of the actions under private capital mobilization for sustainable development impact, particularly the alignment of blended financing with national development and industrialization strategies to ensure country ownership.

Having said this, we wish to reiterate and emphasize the Group’s position that, while private sector resources can provide additional flows of development finance, these are not suitable for all sectors and countries and cannot replace traditional ODA. We also call for further study on sustainable business and finance legislation to ensure it supports, rather than hinders, access to development financing. Furthermore, we caution against inadvertently creating new procedural or substantive barriers that would limit developing countries’ ability to access private sector financing for sustainable development.

Therefore, we believe the section on sustainable business and finance legislation requires more study and discussion. This includes recommendations on the adoption and interoperability of legislation and taxonomies, the adoption of standards from the International Sustainability Standards Board and the Global Reporting Initiative, and the development of a global interoperability governance framework.

Science, Technology, and Innovation (STI)

The Group is encouraged by the focus on STI in the zero draft. However, we stress the need for deeper commitments to address the labor market impacts of technological advancements, including brain drain and job displacement. Building digital competencies in public institutions in developing countries is essential, alongside promoting public-private partnerships to foster entrepreneurship, develop local innovation ecosystems.

We call for enhanced cooperation in technology transfer, sharing, and capacity-building to support developing countries in advancing scientific and technological innovation. In this regard, we must work together to foster an open, fair, just, and non-discriminatory international environment.
 
We also reiterate the call for a multilateral STI fund to stimulate innovation, support global research, and facilitate technology transfer. We must also prioritize the development and strengthening of digital connectivity to prevent the widening of existing divides.

Data, Monitoring, and Follow-Up

The Group recognizes the importance of data for effective decision-making and accountability. We call for investments in innovative data collection methodologies to generate real-time information and for strengthened support for statistical capacities in developing countries. Leveraging voluntary sustainability data from the private sector to complement official statistics is also essential to foster robust monitoring systems and ensure a more accurate accounting of progress in sustainable development.

International Development Cooperation

We reiterate that international development cooperation, especially North-South cooperation, remains a fundamental catalyst for sustainable development. North-South cooperation is the main channel of development financing. We emphasize the need for binding timeframes for ODA commitments and call for reversing the trend of concessional loans replacing grants.

We call for the fulfillment of existing commitments, including ODA by developed countries, as well as the announcement of new commitments. The role of the United Nations in development cooperation must be reinforced, including through a strengthened Development Cooperation Forum. It is critical to maintain the distinction between climate finance and development finance to ensure that resources for sustainable development are not diluted.

In conclusion, the zero draft provides an initial foundation but needs to be strengthened to fully reflect the realities and priorities of developing countries. The Group is particularly encouraged by the inclusion of line-by-line negotiations in the roadmap, as this approach was strongly advocated by the G77 in its elements paper. We thank the Co-Facilitators for recognizing this priority, as it ensures a detailed and inclusive discussion on the draft text.

However, we request that the Rev.1 be released in the first week of March, in order to provide the Group with sufficient time to receive feedback from capitals and to formulate its position for the text-based negotiations.

The Group of 77 and China remains committed to engaging constructively in the negotiations to ensure a balanced, inclusive, and actionable outcome document that accelerates progress toward financing for development.

Thank you.