(Part 3) Fourth Preparatory Committee for the FFD4 Conference (4th PrepCom)

Good morning everybody. Should we get started so that hopefully for this session we don't run out of time. Excellencies, distinguished delegates, I call to order the second informal meeting of the FFD4 Preparatory Committee at its fourth session. Welcome to this informal meeting, which will provide an opportunity for expert technical discussions on critical issues under discussion in the draft outcome document of the conference. This morning, we will have two panel discussions. The first one will be on domestic resource mobilization, and the second one on international development cooperation. We shall now begin the discussion on domestic resource mobilisation. I am very pleased to welcome our distinguished presenters to this discussion. On behalf of my fellow co-facilitators, and especially Ambassador Chola Milambo, it is my pleasure to moderate this panel discussion. Domestic public resources are the cornerstone of sustainable development, providing fiscal space to invest in sustainable development and generating incentives that shape economic and social outcomes. Many developing countries still face significant obstacles in mobilising domestic revenues and effectively utilising their fiscal systems. These challenges stem from both domestic and international factors. Domestically, insufficient transparency and accountability in fiscal systems, weak alignment of fiscal policies with sustainable development, limited institutional capacity and the underutilisation of national public development banks can hamper resource mobilisation. and effective use. International tax cooperation could be expanded, and persistent challenges hinder the effective combating of illicit financial flows. The first draft of the outcome document for FfD4 addresses these challenges with concrete actions in four areas. First, commitments to ensure that countries have the necessary resources and that they are collected efficiently and spent transparently in alignment with sustainable development. Second, strengthened international tax cooperation to ensure that international tax rules respond to the diverse needs, priorities and capacities of all countries, especially developing countries. Third, effectively combating illicit financial flows. And fourth, fully leveraging the potential of national public development banks. Panelists in this session are invited to pay particular attention in their interventions on the proposals on support for domestic revenue mobilization and on combating illicit flows. I invite the panellists to respond to the following guiding questions. What room is there to significantly and further enhance international support to countries for domestic resource mobilisation? What value would there be to setting an indicative floor for tax to GDP ratios that could galvanise action? This is action 22M in the original first draft. Which are the key components of a meaningful package of actions to advance the fight against illicit financial flows in CVA? Action 24. How best should a special meeting of the ECOSOC on financial integrity be designed to have impact and address financial integrity at the systemic level. Action 23C in the first draft. And I now turn over to Ambassador Chola.

Good morning, everybody. And thank you very much, Ambassador Merete. We've had a good first day, so now we are on to the most important component, which is DRM. And we have a great set of panelists to discuss this important matter. I would like to remind our panelists to be concise and concrete in their interventions. You will have four minutes for your interventions, and I would invite you to speak specifically to the first draft of the outcome document and how you want to strengthen actions for a strong outcome in Savaia. Without much further ado, let me just list the speakers we have. We have one hour, 20 minutes roughly. Our first speaker is Ms. Justhilda Phlope, Department of Planning and Evaluation from South Africa. We have Felipe da Costa, Ministry of Foreign Affairs, Brazil. And we have Alain Serey from the Ministry of Economy and Finance from Burkina Faso. So Justhilda Phlope, the floor is yours for four minutes.

Distinguished delegates, good morning. I am going to focus specifically on illicit financial flows because I believe that's where the greatest potential is for mobilizing domestic resources to finance this very, very still ambitious agenda that we have for FFD4. However, it's still not very clear a few months or maybe a month before Seville on what the final outcome will look like. I know we're supposed to focus on the original text, but we moved on and focus on the text that we have now. And it is bracketed. Almost every line has a bracket. It's bracketed even on exact actions required on holding a meeting to exchange best practices, including on the use of technologies to combat illicit financial flows effectively. And that action is still to be considered resources allowing. And now if we bracket even basic actions such as having a meeting to exchange best practice, colleagues, I think we really should think better around how and what needs to be done. Curbing illicit financial flows is important, not only for domestic resource mobilization and for economic growth, but also because illicit financial flows pose an inherent risk even to the receiving economies, such as increasing financial liquidity, draining hard currency reserves, increasing inflation, and so on. And thus, hopefully, the final version of this document might consider including this following concrete actions in order to effectively reduce illicit financial flows. The first big action that we are hoping can still be considered, I know we shouldn't be introducing a very new language, but this is not new language, it's coaching it maybe in a better way to enable to be more palatable to all of us. So it's improving transparency through automatic exchange of tax customs, money laundering and other crime related transactions, beneficial information, ownership information, interoperable beneficial ownership registers that apply the beneficial ownership data standard, leveraging digital public infrastructure, improved timely and quality data to track, measure, and publish illicit financial flows using the statistical methods already proposed by UMTAD and others, Utilizing single customs windows, unique identifiers through the global legal entity identifier, unique consignment referencing digital identity and unique text. or trade identity numbers to track cross-border payments and the movement of goods and services across border while ably identifying the beneficial owner, building capacity and capability to measure, track, investigate, prosecute and recover and repatriate stolen assets, enabling the UN to track progress over this over the next decade on curbing illicit financial flows, improving domestic resource mobilization, and repatriating stolen efforts to be used in a transparent, accountable manner that fuels development, including for the most vulnerable youth, women, persons with disability, et cetera, thus creating a new legacy for the FFD4 conference. These concrete steps build on the commitments already made by member states in Addis Ababa, and colleagues, you will remember that pledged, as Member States, to fight against illicit financial flows through, amongst others, anti-abuse clauses in tax treaties, a commitment to strengthen accounting, better disclosure and information sharing, and more efforts to ensure tax is paid where economic activity occurs. So work has already been done, but it's still inadequate because present estimates suggest that billions still leave, particularly the African continent, through illicit financial flows. And this therefore suggests more work, more commitment, and a different way of looking at things if we are to truly curb illicit financial flows, hence the proposals mentioned above earlier colleagues. Thank you.

Thank you very much for staying within time, Madam Tlote. And now we go to Felipe. Felipe, the floor is yours.

Thank you very much. It's a privilege and an honor to be here. Before I address the specific issue of how domestic resources are mobilized and collected, I'd like to talk a little bit about how these resources are spent, which is the second-half of the equation and which is just as important, if not more so. In 2024, the world economy grew by 3.2 percent, and there was a 7.1 decrease in ODA, which went from 223 billion to 211 billion. CIPRI informs us that military spending went up 9.4%, reaching the staggering $2.7 trillion in 2024. From 2015 to 2024, military spending has gone up every single year. That's a 37% increase over the decade, reaching the highest per capita spending since 1990. Another staggering number which was made known during our FFD forum discussions earlier this week is that ODA, following the 7.1% fall in 2024, will be cut by half this year. That's a 50% decrease. This is not the blame of a single country, since no fewer than nine donor countries have announced reductions in ODA. If that information turns out to be correct, that means ODA will go from the previous 0.33 of developed countries' GDPs to something around 0.16 in 2025, which in my opinion is nothing short of a disaster, as many low-income countries are still heavily dependent on ODA. Is there a link between the numbers? I'd say yes. And some developed countries have mentioned specifically, as they announced increases in military spending, that those extra revenues would be taken from their ODA budgets. So there always seems to be money available for military spending and for war, but never enough money for financing development. On the road to the first FFID conference in Monterey in 2002, developed countries stepped up to the plate and announced increases in ODA, which had been falling steadily since the '90s, taking that number from .2 of GDP to .33, where it has remained for more or less ever since. With a few laudable exceptions of countries that do reach the 0.7% or even surpass that, the message that is being sent on the road to Seville is not a very auspicious one. This is not the way to restore trust, reaffirm solidarity, or strengthen the multilateral development system. Accounting ruses such as the TSD cannot hide reality, and the post-ODA narrative is a non-starter as far as developing countries are concerned. This is definitely not the spirit of Monterrey that should be inspiring our actions. How are public resources spent by developing countries? Well, a large portion goes to servicing debt because of the extremely high interest rates imposed on developing countries. UNCTAD informs us that the cost of servicing debt for developing countries has risen to $1.4 trillion per year. Fifty-four developing countries spend more than 10 percent of their fiscal revenues on debt interests. Today, The high cost of debt for developing countries is probably the single greatest obstacle to the achievement of the 2030 Agenda and our shared development goals. Capital is flowing from the poor countries from the global south, where capital is scarce and investment needs are immense, to rich countries in the global north, where capital is abundant. Is this a good thing for the developed countries? Not necessarily, since the excess of capital has led to a huge increase in asset prices such as real estate. making the cost of housing and rental prohibitive for families and small businesses. These global imbalances need to be urgently corrected. Now moving into the issue of domestic resource mobilization, I'd like to highlight important issues that we'd like to see in the outcome document, some of which are already partially reflected in the first draft. With regards to DRM, our outcome documents should reflect the six following principles: progressivity, meaning that taxes can be an instrument to combat inequality; and the multinational companies and high net worth individuals should pay their fair share of taxes. During its G20 presidency, Brazil placed taxation and equity at the center of the agenda. It convened the first G20 ministerial meeting on international tax cooperation, resulting in the Rio Declaration, which reaffirmed progressive taxation as key to reducing inequality, protecting fiscal space, and financing the SDGs. We also launched the G20 blueprint on minimum effective taxation of ultra-high net worth individuals, thanks to the work of Gabriel Zucman, Quentin Perrinello, and their team. Second, there should be a fair distribution of the tax base and of taxing rights. That is one of the key issues between North and South. Who has the right to tax which activities? How global fiscal income is distributed? Third, taxation should occur where revenue and value are created, with a view to allowing developing countries to be able to tax activities that take place on their territory. Combating IFF, this is a theme that Josephine has discussed in detail, so I won't go into too many specifics, but we urgently need the creation of beneficial ownership registries, taxation of the digitalized economy, prevention of IFF through trade mispricing, and an effective mechanism for the rapid recovery of stolen assets. Fifth, There's also the need to strengthen the link between fiscal systems and development outcomes and ensure dedicated financing for critical social sectors, including food security and nutrition. That could be done by adding the following item to paragraph 22J bis. We commit to aligning fiscal policies and public financial management reforms with social sector development outcomes. This includes delivering public services and addressing financial challenges in critical areas. such as food security and nutrition, social protection, education, health and water, sanitation, hygiene, and agri-food system transformations to enhance the efficiency and effectiveness of allocated funds. And lastly, there should be an increased international tax cooperation through a robust UN convention, where the voices and legitimate interests of developing countries can be taken into account. Those are the main points I wanted to make today. Thank you very much.

Thank you very much. And now we go to our last presenter, who's Mr. Alain Siry, Mr. Siry from Burkina Faso. The floor is yours.

Okay.

Merci.

Thank you.

Ladies and gentlemen, co-presidents, distinguished guests, on behalf of the delegation of Burkina Faso, I would like to begin by paying tribute to the excellent work of the co-facilitators, which led to a draft document on the reforms to undertake to ensure better financing for sustainable development. In the area of mobilizing domestic public resources, I'd like to share three proposals which also represent additional remarks on measures pertaining to that contained in the document. Firstly, the risk of shrinking room for manoeuvre in budgets for countries in difficult or precarious situations. The document suggests aligning fiscal systems with sustainable development. Committing to this realignment means without doubt that we would have to implement rules to allocate the budget in line with specific sectors gender, environment, education, agriculture, health etc. This might lead to tightening of budgetary constraints particularly for countries in difficult situations and yet the very sources of the precarity of these countries are situated in the areas that the countries have sovereignty over. Therefore, it's important that this realignment be done with respect to countries' sovereignty and also be seen in the budget so that they can meet the challenges they're facing, particularly sustainable development. Secondly, I would like to note the crucial role of external support in broadening the fiscal plate. The document provides that the fiscal basis, the document says that support for international from international cooperation is particularly decisive in terms of ensuring effective fiscal systems. This was also highlighted in the 2023 report by the Global Partnership for Effective Cooperation for Development. This approach involves ensuring technical and financial partners providing resources and also demanding that states provide for tax exemptions. This, however, erodes the tax basis for compatible for further cooperation which is compatible with mobilising fiscal resources. Therefore, we recommend systematic use of budgetary support and the use of national public finance systems. Three, broadening capacity building for all international financial development institutions. The document underscores the crucial role of national development banks for mobilizing resources to support sustainable development beyond national development banks. In fact, it falls to all development financing institutions, just like micro-financing institutions that have an effect on the smallest households, all of these need to be strengthened in their capacities and supported in terms of how they can assess their impact on sustainable development. I'll stop there. Thank you.

Thank you very much, Mr. Siri. And now we go to the discussants for comments. So now I invite our discussants to share reflections on the guiding questions and comments on via panel. You have exactly three minutes for your interventions. I now give the floor to the first discussant, Ms. Mary Bain, Deputy Executive Director of the African Tax Administration Forum. The floor is yours.

Thank you, co-chairs, excellencies, distinguished delegates. The first draft of the FFD4 outcome document rightly identifies domestic revenue mobilization as the key to sustainable development financing. With the annual financing gap now in trillions of US dollars, we must urgently increase international support to strengthen fiscal systems in developing countries. Allow me to address the urgent issues that would galvanize our energy to ensure development finance works for all. First, the design and implementation of international tax rules is an important step to ensure taxing rights to developing countries and a fundamental part of mobilizing domestic resources. The design of international tax rules has resulted in complexity and limited buy-in to date. Without a global approach to the design and agreement of pressing issues for developing countries, we risk remaining with the same challenges post FFD4. Therefore, the ongoing development of the United Nations Framework Convention on International Tax Cooperation must be upheld and prioritized. This will ensure that the ongoing implementation of global standards remains on track without duplication. The rules must factor in the ability to ensure ease of implementation to encourage fast uptake and global acceptance. Second priority is capacity building. Developing countries, including those in Africa, continue to make small gains in achieving the necessary tax to GDP growth required for meaningful development. Government tax revenues haven't reached the desired rate required to achieve the sustainable development goals. To put it into context, according to the African economic outlook, African countries must increase this ratio by about 13.2%, bringing the current median ratio to 27.2% of GDP, assuming all revenues go to targeted areas. To close this gap and consolidate gains made, investment in capacity building programs for countries and regional organizations is critical. And this is where regional organizations like the African Tax Administration Forum must be facilitated to be able to support this growth in line with action 22. We encourage scaling up of financing to achieve this. The third investment in digitalization of tax administrations, fourth is the increasing of tax transparency. And last, I want to talk to the track implementation of tracking the implementation and effectiveness of these proposals. So the FFD4 must provide funding for capacity building, investment in digitalization, and reform to the financial architecture that allows countries equal input in design of international rules. Let us ensure that Seville marks a turning point.

I thank the Deputy Executive Director, Executive Secretary of Africa Tax Administration Forum, and I'll give the floor to Ms. Ana Claudia, uh, Rosbach, Executive Director of UN Habitat. The floor is yours.

Excellencies, distinguished delegates. UN-Habitat expresses its gratitude to the co-facilitators of the outcome document for the fourth International Conference on Finance for Development for the dedication to shaping a comprehensive agenda for financing reform at all levels. I would like to begin by emphasizing the critical role of sustainable urbanization in driving development. As we move forward with these deliberations, it's essential to recognize the urgent need for increased investment in cities to promote sustainable, inclusive development for all. The World Bank's upcoming report to be launched at the Hamburg Sustainability Conference estimates that cities in low and middle income countries will require between two and 800 billion US dollars annually for resilient urban infrastructure. An additional 500 billion US dollars is needed each year for operations and maintenance. The outcome document rightly highlights the importance of strengthening subnational finance to enhance domestic resource mobilization. When cities can secure reliable and predictable financial resources, they can better drive sustainable urban development and build resilient communities. As such, the outcome document can further emphasize fiscal sustainability at the subnational level Cities, cities must be empowered to effectively manage their local revenues, expenditures and assets, including land and infrastructure. This includes enhancing local revenue regeneration, ensuring equitable and predictable, predictable intergovernmental transfers and improving access to appropriate capital, including innovative financial tools. as subnational loan guarantees. UN-Habitat focuses on building the capacity of cities to plan, manage and finance sustainable urban development. This includes improving land use planning, financial management and own resource revenue systems, while supporting national governments to integrate local urban infrastructure priorities into national investment plans. For example, UN-Habitat is currently helping six capital cities in Africa and several secondary cities to expand fiscal capacity through improved revenue systems, asset management and financial planning. At the same time, we must encourage development finance institutions, including regional multilateral development banks, to scale up city financing and better align it with integrated urban investment priorities, addressing demographic and climate challenges. In conclusion, to increase investment in cities, we must place urbanization and subnational finance at the heart of sustainable development financing. Thank you.

Thank you very much. I thank the Executive Director of UN-Habitat. I now give the floor for comments and questions that we've just heard from all our panelists and discussants. And now we go to the floor. Delegations wishing to request the floor should indicate their intention by pressing the button on the microphone console. Before giving the floor to the first speaker, I kindly request delegations to observe time limit of exactly two minutes for interventions. To ensure proper interpretation, delegates are asked to speak at a normal pace and provide a written comment of their statements to e-statements@un.org. That's e-statements@un.org. In order to keep track of time, a countdown clock will be visible on the screen to alert speakers when time is up for conclusion. As necessary, the microphone will be automatically deactivated when the time limit has elapsed. Yes, of course. So that said, we start with our first speaker, that is Angola representing the Group of 77 and China. And then soon after that, we'll have Bangladesh, Guatemala, Yemen, Ecuador, Cuba, so in that order. So Angola, you have the floor now. Thank you.

Thank you and good morning, ambassadors and co-chairs. So the Group of 77 and China reaffirms that public policies and the mobilization and effective use of domestic public resources on the base of national ownership plays a central role in financing sustainable development. For that to come, it's essential that to scale up, up demand based institutional technology and human capacity building support to developing countries for fiscal system and domestic resources mobilization. We underscore the need to leverage national fiscal policies and systems for sustainable development priorities, including by ensuring progressivity and efficiency across fiscal systems to address inequality and increase revenue and encouraging the broadening of the tax base with full respect to tax sovereignty. And in this context, we welcome the emphasis of place on strengthening domestic resource mobilization. We further commend the inclusion of language addressing IFF and promoting fiscal transparency. These are critical elements for safeguarding and maximizing domestic revenues. The group emphasized that efficiently tackling tax evasion, corruption, and related leakage is essential to ensuring that domestic resources are mobilized, retained, and deployed in support of national development objectives. In addition, the G77 stressed the importance of establishing robust and innovative frameworks to enable sustained private sector participation in developing financing in line with country-specific circumstances. Public-private partnerships, blended finance mechanisms, and target initiatives for sustainable investments may be promoted, subjected to specific priorities, developed goals, and manner of granting such initiatives of each nation.

Thank you very much. I now give the floor to the distinguished representative from Bangladesh, who will be followed by the representative from Guatemala. So Bangladesh, you have the floor.

Thank you, Mr. co-facilitator. We welcome comprehensive emphasis on domestic resource mobilization in the draft. However, The ambition of DRM must be accompanied by equity, capability and support in execution. We note with concern that the initiative for a multilateral mediation mechanism on asset recovery and return has been omitted from the draft. To promote economic justice and equitable oil distribution, the text must call for a UN-led multilateral mediation mechanism to resolve challenges related to asset recovery. We are encouraged by the call for stronger national level regulation to tame illicit financial flows. We appreciate the emphasis on aligning fiscal systems with sustainable development goals. Yet, for many developing countries and LDCs, this alignment often faces structural hurdles. We urge the outcome document to move beyond general commitments and call for a global initiative to support fiscal transformation in developing countries and LDCs, combining concessional finance, technical assistance, capacity building, and technology transfer for revenue administration reform. We welcome the call to broaden tax bases and integrate into the informal sector. However, this process must be equitable and accompanied by incentives like formalization, linked access to credit and social protection supported by international finance and.

I thank you. I thank the distinguished representative of Bangladesh. I now give the floor to the distinguished representative of Guatemala.

Thank you very much, Mr. Co-facilitator, for giving me the floor.

Guatemala aligns itself with the statement delivered on behalf of the Group of 77 and China. In recent years, nations have faced challenges in macroeconomic and financial stability, which has raised many expectations in terms of monetary policy decisions in economies from those wanting to moderate the phases in economic cycles. I wish to underscore that the inherent link between the economic activity of a country and gathering tax proceeds means facing challenges in this area, particularly in an era of changes, including development in the digital economy and complexity of global value chains. In this context, it is important not to forget the role of customs in facilitating overseas trade. We believe that the points included in the first revised draft of the outcome document from the conference are crucial for mobilising domestic resources. Transparency and accountability, institutional strengthening and international fiscal cooperation are particularly important. We must foster the necessary conditions to grow the tax base, integrating the informal economy and the digital economy in light of the existing gaps or loopholes in countries, so that they can be managed and further taxed. In this regard, it is also necessary to design fiscal policies that drive the inclusion of these sectors, improving living conditions for citizens that are not registered in the tax system. Along the same lines, the adoption of international standards, the exchange of information and technical assistance between states are all essential to build effective infrastructure for the management of tax evasion and tax offences. Finally, mobilising resources for developing countries will be fundamental to reach these aims and ensure fiscal stability, enabling sustainable development Thank you.

I thank the representative from Guatemala. And now we have the representative from Yemen. From Yemen, followed by Ecuador, then Cuba.

Thank you. Yemen aligns itself with the statement delivered by the Group of 77 and China emphasizing the central role of domestic public resources mobilization for financing sustainable development. The mobilization of domestic resources remains our greatest challenge. While our private sector has shown remarkable resilience during conflict, our public revenues systems require significant rehabilitation. We strongly support paragraph 22 on transparency and accountability in physical systems. But our countries like Yemen, they have their domestic resource mobilization which requires specialized approaches. We propose strengthening paragraph 22K to M to include specific capacity building provisions for countries in conflict transition. The fight against illicit financial flows, as outlined in paragraph 24, is particularly critical for Yemen. These flows drain resources needed for basic services and we urgently need enhanced international cooperation to address them. Yemen welcomes paragraph 23's call for inclusive international tax cooperation, especially initiatives that recognize the unique challenges of conflict affected countries where formal tax administration has been disrupted. We call for financial and technical support to rebuild our revenue system and establish digital public infrastructure that can help formalize our economy, much of which expanded informally during the conflict when formal institutions were disrupted. Thank you.

Thank you for efficiency. And now we have distinguished representative from Ecuador, then Cuba. Ecuador.

Thank you, Mr. Co-facilitator. The broad range of available financial tools for developing countries means institutional, we need more robust institutional capacity so that we can fully harness them. This includes strengthening the national development banks so that they can have the right tools to access the different financial mechanisms. Debt-for-nature swaps and payments for the environment, and also more ambitious cooperation in climate and other areas, are also challenges and opportunities for our cooperation agencies. In this context, it is also important to strengthen public-private partnerships and public-private partnerships for development, not only with implementation tools but also as strategic platforms for multi-sectoral cooperation that are able to have an environment uh, environmental and economic impact on the long term. These should be designed inclusively, guided by the principles of transparency and aligned with national priorities for sustainable development. Therefore, Ecuador urges us to continue to work with all international financing actors as we look ahead to Seville, so we have a document that reflects our needs and addresses diversity of context and also reflects our commitment to the 2030 agenda and sustainable development. Thank you.

I thank the distinguished speaker. Thank you so much. Now for the next five speakers will be Cuba, Kenya, Timor-Leste, and Burundi. I also want to announce that we're closing the speakers list. So now, Cuba, you have the floor.

Thank you, co-facilitator. We align ourselves with the statement delivered by Angola on behalf of the Group of 77 and China. National responsibility in mobilizing domestic resources are They are necessary conditions, but they are insufficient to ensure sustainable development. Efforts to mobilise domestic resources should have a favourable environment, not only within countries, but also externally, that would address existing asymmetries in the international financial architecture and in global trade, as well as aspects that prevent nations from the South from gaining the necessary resources. Developed countries also need to be further committed to addressing illicit financial flows coming from developing countries that undermine our ability to be able to achieve sustainable growth and development. Promoting international tax cooperation that is inclusive and effective within the United Nations and streamlining the role of credit rating agencies continues to be a prerequisite for the achievement of the SDGs, because it would allow developing countries to be able to effectively mobilise their national We are following closely the progress of the work of the intergovernmental committee in order to draft the terms of reference for a UN framework convention on international cooperation in tax issues. We hope that the outcomes of that will not be delayed and can provide the necessary benefits for developing countries and as well as a multilateral instrument in this area. Thank you.

Thank you very much for your efficiency. Okay, so we have Kenya, Timoliste, distinguished representative from Kenya. The floor is yours.

Thank you, co-facilitator. Kenya aligns with the statement made by Angola on behalf of the G77 and China. And in national capacity, we wish to say that in this era of declining ODA investments and rising debt burdens, Domestic resources remain the most sustainable form of financing development and must be supported by an inclusive global tax system. The FFD4 to endorse the UN Framework Convention on International Tax Cooperation. Capacity development to support domestic resource mobilization by improving tax administration is important. International and regional cooperation on taxing high net worth individuals needs to be considered. There should also be not conditional or discriminatory support to countries who aim to increase their tax to GDP ratios. Some countries may be at 15% of GDP, but with a tight fiscal space and in debt distress. So they will be equally in need of that capacity support. On taxing the informal sector, focus should be on undeclared income and wealth and protecting the lowest income earners. On the section on national finance, there should be consideration on including on source revenues. I thank you.

Thank you. I appreciate the efficiency in the room. So the next speaker is from Timor-Leste. So the representative from Timor-Leste followed by Cabo Verde.

Thank you, co-facilitators. My delegation aligns with the statement delivered by Angola on behalf of G77 and China. Timor-Leste supports the first draft of FFD4 outcome document, which emphasizes the crucial role of domestic resource mobilization as alternative to close the financial gap for sustainable development. We believe that international support can be significantly enhanced to boost domestic resource mobilizations in developing countries, particularly SEEDS and LDCs through a multifaceted approach, which includes investing in training and technical assistance for tax administrations to improve their operational capacity and efficiency, supporting countries in implementing better public finance management systems, policies and practices to enhance spending efficiency, providing expertise to design and implement fair, transparent and efficient tax systems, leveraging platforms like the Global Public Finance Partnership to facilitate knowledge sharing and coordination among different stakeholders, ensuring that international financial and development institutions provide consistent policy advice on DRM and development. These also include for LDCs by strengthening capacity to address tax evasion and recover illicit financial flows, supporting the development of domestic public sovereign debt markets to facilitate financing. and modernizing revenue collection systems through digitalization to improve efficiency and transparency. And finally, ensuring that DRM reforms are socially acceptable to build public trust in the tax system. I thank you.

Thank you very much. Okay, so I think we'll be soon getting to hear back from the others. So Cabo Verde, Burundi, India. So distinguished representative from Cabo Verde, the floor is yours.

Thank you, Mr. Confessore. We had a problem with my computer here to find my speaker, but I just want to point some things. It's related to the point. Cape Verde, two years ago, three years ago after COVID, we reached around 145% about debt to GDP. Uh, uh, we had a problem, rate or debt, but our debt was just, was mentioned yesterday, to, to support private sector, to support the, the of the economy. So when we talk about for resource mobilization, we need to see what we need for this. Uh, resource mobilization, especially for developing country, we need to focus on three points. First, first, first of all is, What we need for private sector, we cannot talk about for resource mobilization if we don't have a strategy for resource, for private sector to dynamization, private sector to create fiscal base. After that, we need to see how we can go to private sector to support the private sector and how we can collect taxes. Collecting tax mean we need to invest in digital economy. We need to invest in digital way to see how we can make data to work for us and not based, make decision based on our strategy, but decision make when we see how how data can tell us what we need to do. And then, as everyone is speaking here, we need to create the capacity building, but not the capacity building to see how we can do that, but it's capacity building to see first, one, how we can read that information, and then capacity building to see how we can support the private sector with our strategy, with our policy implementation that we make. And then after this, all decision that we can make will be on support the private sector, and then Also to see how the economy can respond of our strategy, creating fiscal base is like to say we need to promote private sector, we need to see how we can work with the private sector and then how we can collect this data to support the economy and create fiscal space and fiscal space can substitute the domestic financing.

Thank you. Well done. Even without the computer, well articulated. All right. Our next few speakers, Burundi, India, Sweden, and Lao. So the distinguished representative from Burundi, the floor is yours.

Thank you, Mr. co-facilitator. Burundi aligns itself with G77 plus China. And here, I would like to note some recent efforts made to diversify our economy and restructure tax administration, which have led to a gradual resumption of growth. However, servicing external debt has become more costly, which takes a significant part of our domestic revenue. that ought to be going toward funding such as the economy that have great growth potential, for example, agriculture, mine exploitation, energy production, education and healthcare. We propose that the outcome document take into account the following aspects: technical support or capacity building that is focused on digitalizing state services, especially tax administration, would be helpful. Facilitating international exchange to eliminate non-tariff barriers for exports of local products also. Also, the restructuring of debt resurfacing, which would take into account delayed repayment of debt in the case of exogenous shocks for developing countries, diversification of financing instruments from concessional loans to low interest rates. Thank you.

Thank you very much. I thank the distinguished representative from Burundi. And now we have the distinguished representative from India, who will be followed by the representative from Sweden. India, the floor is yours.

Thank you, Chair. India advocates for the efficient mobilization of domestic public resources through progressive growth-oriented tax policies and robust international cooperation under the UN Framework Convention for International Tax Cooperation. To advance domestic resource mobilization and ensure fiscal stability, we would like to highlight the following. While discussions on an indicative tax to GDP ratio floor, as reflected in the outcome document, may catalyze policy action, such decisions should remain with national governments in full respect of their tax sovereignty. On innovative taxes, it is necessary to examine their implications. References to such levies is premature and should be avoided as they may violate the principle of CBDRRC enshrined in the Paris Agreement. Combating illicit financial flows requires robust regulatory frameworks, effective enforcement mechanisms, and enhanced international cooperation. To this end, it is essential to regulate non-financial businesses that act as key intermediaries in addition to professional service providers proposed in the outcome document. We must also commit to technological neutrality between digital payment systems and card networks, including with respect to FATF standards on cross-border transactions. We also highlight the need for timely information sharing in combating financial crimes. We support convening a special ECOSOC meeting on financial integrity designed to assess emerging and persistent risks of illicit financial flows. Chair, India emphasizes productive efficiency and optimal resource utilization to achieve long-term sustainable and equitable growth while leveraging technology to enhance transparency and accountability in public financial management. Thank you.

Thank you very much. And now we go to the distinguished representative of Sweden, who will be followed by the representative from Lao People's Democratic Republic. So Sweden, you have the floor.

Good morning. Trade, private investments and domestic resource mobilization are necessary for countries to achieve the global sustainable development goals. Increased tax revenues and their efficient use are key aspects of domestic resource mobilization. We must do more to combat tax evasion, corruption, organized crime and money laundering and the illicit financial flows derived from them. Development cooperation should catalytically increase domestic resource mobilization, such as tax revenues in partner countries and capital from other actors, including the private sector. Therefore, Sweden is proud to offer capacity in tax reforms and efficient tax administration in various countries, supporting reforms for domestic resource mobilization and technical cooperation with partner countries to achieve improved tax policy and more efficient systems to increase tax revenues and prevent tax evasion, as well as promote good governance. Successful domestic resource mobilization is closely linked to an attractive investment climate, private capital flows, a strengthened formal sector, and thus increased resources for sustainable investments. This also increases the opportunities to enhance societal resilience in all sectors of society. Furthermore, where possible through aid efforts, tax reforms contribute to formalizing the economy so that the country's own resource base can increase. This also has an important gender equality component, as many participants in the informal economy are women. Lastly, Sweden is also constructively engaging in the negotiations of a framework convention on tax cooperation at the UN, including as a bureau member. Thank you very much.

I thank the representative from Sweden. And now we go to representative from the Lao People's Democratic Republic. And then we'll have the next three speakers after that will be the United Kingdom, Indonesia, and then Germany. So Lao, your floor is yours.

Thank you, co-facilitators. Lao PDR welcomes the outcome document. It is aligning and significantly impacted our direction to make the adjustment needed to accelerate progress toward the SDGs.

Recognizing the importance of domestic resource mobilization for.

SDGs, Lao PDR has increased capacity to effectively mobilize domestic resources by improving tax system and strengthening capacity for revenue collection. The government has been implementing various tax reform measures and modernizing tax administration with the aim of raising.

Tax revenue up to 20% to GDP by 2030, and has also explored other potentially significant sources to raise revenue such as taxes from environment, property, excise, carbon, and natural resources. Having faced challenges when we attempt to establish efficient tax systems, AFD4 should call on multilateral, uh, organization and international corporation to leverage their respective, uh, strength, bond their financial, technical, and… And policy advice to help LDCs reform, uh, revenue reform by building efficient and equitable tax system, which are capable of raising revenue from the multitude of sources, particularly mobilizing revenue from natural resources, ensuring that revenue collected provide a fair compensation for maximizing the financial benefits from the use of natural resources. In addition, we urge international communities to fulfill commitments on supporting countries to raise domestic revenue, particularly to consider not requesting tax exemption on goods and services delivered as government to government aid. This would be contributing to countries' efforts on strengthening DRM to restore fiscal sustainability and create much needed fiscal space. Therefore, para 32 of outcome document should provide strong linkage and action.

Thank you very much. I now give the floor to the distinguished representative from the United Kingdom, then Indonesia.

Huge thank you, co-facilitators, for giving me the floor today. It really does feel like there is broad agreement actually in this room on the need to urgently support countries to mobilize and retain more of their own resources. And I think actually our colleague from Angola put brilliantly why tackling corruption, illicit financial flows and domestic resource mobilization really, really matters in this debate. Working in partnership on these issues remains a top priority for the UK. And to realize this ambition, there are three key ideas we'd really like to see reflected in the outcome document. Firstly, increase uptake and use of beneficial ownership registers. We all know that when information of the true owners of companies, assets and other legal entities is made public, we can follow the money across borders and expose financial crime. The availability of high quality, interoperable beneficial ownership data is a vital part of this. Secondly, we just want to reaffirm and support what many others in the room have already said. We need greater investment in capacity building for tax. That is clear. It's a fantastic investment that empowers countries and mobilizes a key source of financing for development and climate. And finally, taxing tobacco, sugar, and alcohol in alignment with national context to help raise revenues and tackle noncommunicable diseases, ultimately saving money on prevention in the long term, a double win. We have proposed language on this at Jata and hope many others can come in and support next week during the intercessionals. Thank you for this conversation and thank you again for giving me the floor.

Thank you for efficiency too. All right, Indonesia and then Germany. Indonesia, you have the floor.

Thank you, Chair. Indonesia align our position with the statement delivered by Angola on behalf of G77 and China, and allow us to highlight the following key points in our national capacity. First, both tax avoidance and evasion still remain as a stumbling block to accelerate developing countries SDGs. We believe that taxation must serve as a powerful tool, not only for revenue generation, but also for reducing inequality and financing social protection system. We reaffirm our commitment to support ongoing process of establishing an inclusive framework for convention on international tax cooperation. This will ensure the inclusion of voices and interests of the global south. Second, closely linked to the tax evasion, There is a pressing need for a comprehensive solution to ensure that multinational enterprises pay their fair share of taxes where value is created, safeguard critical tax revenues for sustainable economic growth, and support countries in strengthening domestic resource mobilization, reducing profit sharing, and promoting tax system integrity and fairness. Third, we continue to promote and share our collective commitments, particularly those aimed at addressing financing gap. One of the mechanism demonstrated to mobilize financing for sustainable development is blended finance, which leverages public fund to attract and unlock additional sources of private capital. Furthermore, we also believe that combating illicit financial flow as presented by the panelists will contribute to closing the financing gap. In conclusion, we reiterate Indonesia's strong commitment to strengthening domestic resource mobilization to close the financing gaps to achieve SDGs. However, we believe that national effort must be matched by bold systemic reform at global level, rooted in fairness, inclusivity, and multilateralism. Thank you.

Thank you very much. And now we go to the distinguished representative of Germany.

Thank you very much for giving me the floor.

I do not have to be comprehensive, as many of my previous speakers have already put very eloquently and highlighted the role of domestic resources as key enabler of sustainable development, also the importance of enhancing international cooperation, capacity development.

That is essential to achieve our common goals.

In this context, strengthening the capacities of relevant authorities is crucial. I would like to highlight one point in particular, maybe to add to the conversation here, that tax revenues must be raised and spent in socially just and just manner so that inequalities are not increased but reduced. Also and above all, with view to gender equality and considering most vulnerable groups. Striving for gender equality and integration of environment and climate consideration is not only a question of fairness and sustainability, but also precondition for success. Thank you very much.

Thank you very much to all the member states for their great efficiency. It really allows us to hear from many stakeholders. We're pleased to note that civil society has requested the floor as well. And our first speakers will be from the ICC, followed by Tax Justice Network Africa. So ICC, the floor is yours.

Thank you very much, Chair, and distinguished co-facilitators, excellencies. As I take the floor for the first time, I would like to start by commending the co-facilitators for the incredible work done on the outcome document and for the improvements made to the zero draft, taking an inclusive approach towards also input and comments raised by stakeholders. For business, clear, consistent, and workable tax rules across jurisdictions are essential. Reducing policy uncertainty and stabilizing the international tax system can foster a more predictable and fair environment for investment and economic growth. Enhanced coordination among intergovernmental organization is also crucial to strengthen international tax cooperation, reduce fragmentation and align with broader global development objectives. A clear commitment and reference to greater tax certainty in the tax is vital for enforcing international cooperation and achieving meaningful progress towards shared development goals. Furthermore, we saw in the first draft language on the effective taxation of natural resources which is right now too open and undefined. We suggest more specific language to be included in the text, which also reflects the risk and investments involved. This would also be aligned with the established principles and previous UN tax committee of experts work, and more specifically the work of its subcommittee on the extractive industry. We welcome the reference to carbon pricing in the draft and advocate for a stronger emphasis on robust well-functioning and high integrity carbon markets. These mechanisms are key to advancing decarbonization adaptation efforts, and deliver additional finance flows where they are most needed. As expressed in previous PrepCom, we also continue to support and welcome language on broadening the tax base by integrating informal sector into the formal economy, as well as the important language on budget transparency, accountability, and efficiency. These measures are crucial for fostering a fair and equitable tax system that supports sustainable development. Thank you.

Thank you very much. And now I'll give the floor to the representative from Tax Justice Network Africa, Civil Society 50 Mechanism, who will be followed by the representative from World Customs Organization, and then we'll have Transparency International. So Tax Justice Network Africa, the floor is yours.

Thank you, Chair. My name is Evelyn Mwendo. I represent the Tax Justice Network Africa, which is a member of the Global Alliance of Tax Justice. We align with the statements that have already been made by the African group. Domestic resource mobilization is recognized as a central source of financing for development in this document. In the spirit of turning words into actionable commitments, let us have a commitment toward a specific threshold for ODA rather than an indicative tax to GDP ratio that could potentially be used as a conditionality. However, we cannot capacity build ourselves out of a broken system, and the FFD process allows us an opportunity to address this. In this regard, we urge member states to promote the already existing intergovernmental process that is underway, and this is the process of developing a UN framework convention on international tax cooperation. Let us not water down or derail the hard fought for positions that were secured through the adopted terms of reference for this process, and let us also not hijack the ongoing intergovernmental process. On the issue of addressing IFFs, effective tax transparency is key to this, and the current tax transparency standards are not consistent with the realities of many African countries. For instance, only four African countries were able to implement CBCR reporting, and only four African countries account for over 84 percent of all exchange of information requests. Therefore, these standards must be visited and this can be effectively done through the process of the UN Framework Convention on International Tax Cooperation.

Thank you.

Thank you very much. I now give the floor to the representative from World Customs Organization who will be followed by Transparency International. World Customs Organization, the floor is yours.

Thank you, thank you co-facilitator. The World Customs Organization or WCO serves as the voice of the international customs community. The indispensable role of customs in enforcing national and international economic trade and social protection policies as well as its significant contribution to public revenues should be explicitly recognized in the FFD4 outcome document. Our members, 186 customs administrations, play an integral role in domestic revenue mobilization. This is especially true in developing countries who make up more than three quarters of our membership where customs contributes between 40 and 65 percent of tax revenues. Many of the actions proposed in the FFD4 outcome document, particularly those related to national and international policies for domestic public resources, therefore cannot succeed without customs serving as an effective implementing agency. Therefore, under action 21, domestic public resources, we entirely agree with Guatemala on adding an explicit reference to improve capacity in the collection of customs revenue. In action 22, on capacity support under domestic public resources points K and L, we propose that customs should be referenced explicitly in addition to and alongside tax administrations. Lastly, in action 24 on illicit financial flows, we agree with the proposal made by Madam Hope from South Africa and furthermore, it will be important to add strengthening the capacity of customs administrations for the detection of IFFs at the borders among the actions listed. Of course, the WCO will submit this statement in writing alongside more specific text proposals for additional opportunities where customs and its instruments could be more explicitly recognized in the text. Thanks a lot.

Thank you very much. And now I'll give the floor to the representative from Transparency International. We will be followed by the representative from Asia Peoples Movement on Debt and Development and LDC Watch. Transparency International, the floor is yours.

Thank you, Chair. I hereby speak on behalf of Transparency International, Open Ownership and the Civil Society FFD mechanism. On the recognition that corruption is a major source of illicit financial flows in both the 2030 Agenda and the Addis Ababa Action Agenda and a critical barrier to public services, we strongly believe efforts to increase domestic resource mobilization and investment in SDGs would not succeed unless accompanied by decisive action to combat corruption in all dimensions of financing for development. This includes substantially reducing corruption and bribery, curbing illicit financial flows, ensuring the return of stolen assets, ending company secrecy, and establishing effective, accountable, and transparent institutions at all levels. We urge Member States to, first, maintain and strengthen the recognition of civil society organizations and media as essential actors in promoting fair and transparent fiscal systems, efficient public expanding, and exposing and fighting illicit financial flows. Then, where accountability and inclusive public participation in tax systems are crucial for enabling citizen monitoring and ownership. Such a recognition should be retained in the outcome document, ensuring CSOs have access to the information and resources needed to exercise their labor in a safe and enabling environment. Second, the FFDF should adopt an open by default approach through open data-driven initiatives that enhance transparency, accountability, and anti-corruption safeguards in PFM. Third, the FFD4 should address the cross-border nature of corruption by ensuring improved regulation and effective supervision of professional service providers in both the financial and non-financial sectors. These actors who serve as gatekeepers of the financial system too often facilitate IFFs, tax abuse, and corruption. And fourth, the FFD4 should double efforts on beneficial ownership transparency by committing to implementing national publicly accessible beneficial ownership registries with high quality and standardized information. improving the exchange of.

Thank you very much. And now give the floor to the representative from Asia People's Movement on Debt and Development and LDC Watch. The floor is yours.

Thank you.

Thank you, Mr. Chair.

I speak as global coordinator of LDC Watch and chair of APMD, the global network of national, regional and international civil society organization alliance based in least developed countries. We all know that LDCs, and African countries so far long have been bearing the brunt of the climate change impact and consequences of inequitable international financial architecture and the repercussion of deeply flawed international tax rule. Since Addis Ababa, it has been a very long wait for the FF.

Which is described as a unique opportunity to reform financing at all level.

In this regard, we expect an ambitious FFD4 outcome document. The importance of progressive tax systems and progressive… Public spending cannot be overemphasized. The outcome document should declare a strong commitment to progressivity across all fiscal systems. The important text included in the first draft on taxation of high net worth individuals should also be retained.

We.

Welcome the inclusion of the first draft outcome document of an important text on the link between tax and environment. and additional sources of finance such as global solidarity levies. From the perspective of the developing countries, especially LDC, LLDC and SIDS, it's also be important that the outcome document includes a specific reference.

To the principle of common but differentiated responsibility with respective capability.

The General Assembly adoption of 2022 of resolution 8/77/244 on promotion of inclusive and effective international tax cooperation.

I thank the representative from the Asia Peoples Movement. I now give the floor to the Food and Agriculture Organization of the United Nations. FAO, you have the floor.

Thank you, Chair. Current domestic public expenditure for food, for agri-food systems transformation is not directed where it's most needed, nor is it financing sustainable and inclusive agri-food systems transformation. FFD4 can play a critical role in addressing this challenge. There is a need to increase the volumes and improve the quality of domestic public resources for agri-food systems transformation, given its crucial role for economic growth, employment, food security, nutrition, and overall resilience, particularly in low and lower middle income countries. Public spending on agriculture per rural inhabitant has persisted at a very low level for years among low and lower middle income countries. which is where the highest levels of food insecurity and undernutrition and the greater agri-food system dependence are registered. FAO welcomes the attention already given to these issues in the draft outcome document, as well as the proposals made by delegations to bring explicit food security and nutrition considerations on the domestic public resource section. Furthermore, FAO considers it important that the outcome document reflects the following. One, the importance of considering food security and nutrition objectives, including appropriate funding for food security and sustainable food systems in fiscal programming. Second, the importance to consider the significant potential on reallocating public domestic spending in agriculture towards sustainability, inclusivity and healthy diets. Some of this relocation could result in increased ODA flows to low and lower middle income countries. And finally, the importance of debt swaps, concessional loans and grants to provide these governments with the much needed fiscal space, allowing them to reallocate public resources towards transforming our food systems, promoting food security and nutrition and increasing resilience. I thank you.

Thank you very much. And now we have Africa Development Interchange Network. The floor is yours.

Thank you, Mr. Facilitator.

Ladies and gentlemen, delegates, we will be making several recommendations. As we are redefining the foundations of financing for development, the mobilization of domestic resources must be a strategic priority for countries of the South. We're not simply trying to raise funds, but rather to build economic sovereignty founded on equity, resilience and justice. We call for strengthened national fiscal capacities through modernised, digital, inclusive administrations that are able to effectively mobilise tax proceeds without furthering inequalities. At the same time, our countries continue to lose vital resources through massive outflows of capital and abusive tax practices. It is therefore urgent to implement a multilateral binding framework based on transparency, the automatic exchange of information and the publication of the effective beneficiaries in order to ensure that we are organised in this way. tax bases through local value change as well as in other ways are also an important tool to increase the tax base, create jobs and strengthen our economies. We also insist on the need for a new global tax treaty negotiated within the auspices of the United Nations guaranteeing that all countries will have a fair voice in international tax governance. Finally, we can't overlook the increasing weight of debt, which takes up an increasing part of our domestic resources. They will therefore call for fair, transparent, coordinated restructuring mechanisms.

I thank the representative for her submissions. Before we go to the panelists, allow me to give the floor to Paraguay for two minutes, who has requested the floor. Paraguay.

Thank you very much, Chairman. In terms of national domestic resources, we note the reference to subsidies and agricultural subsidies in this area. We wish to recall that the reduction of agricultural subsidies is a pending issue in global trade. The elimination of those subsidies would allow us to avoid the exploitation of natural resources and the harm that that causes. While those subsidies continue, they should be in line with the rules of the World Trade Organisation. Furthermore, we believe that it would be helpful for energy transition issues that are mentioned in this section to be in line with the Paris agreement agreed language. For instance, the reference to the net zero target mentioned does not bear in mind the fact that developed countries should reach this target before developing countries, establishing clearly the responsibilities of developing and developed countries. Further, we recognize that the various innovative approaches to taxation to mobilize resources for sustainable development and solidarity-based taxes mean imposing a disproportionate burden on certain developing countries, particularly those in special situations, which might stymie their economic growth and hamper their ability to achieve sustainable development. Therefore, we need to ensure that within the possible options for innovative mechanisms to mobilise these resources, we do not pose an additional burden on developing countries. Thank you.

Thank you, and really thank you to all those who have made their interventions. To the panelists, I think I will give you two minutes each to just react to what you've heard. I heard many things, broad set of issues, including around capacity building came out very strong, illicit financial flows, and many other issues really. So we'll start with you, Madam Leope. The floor is yours.

Thank you very much, distinguished delegates. Uh, they, all the ideas proposed, uh, uh, are great, it, it is true that the system itself, the global financial architect. must be reformed, transformed to enable voice, access to concessional financing, dealing with the high cost of capital faced by least developed countries and enhance good governance, basically level the playing field as we talk of domestic resource mobilization, capacity building, capacity building of both people, institutions and building capabilities is also one of the very necessary actions in order to optimize domestic resource mobilization, empowering MDBs and NDBs in order for them to operate at scale, reducing illicit financial flows. All of this was building on the existing innovations such as blended finance, which we still to see the expected potential because currently research shows that the efforts have only raised 213 billion. resources of which only 6% went to least developed countries. So more still needs to be done in order to meet the many billions that have been called for even by the UN Secretary General in order for us to meet the sustainable development goals and leaving no one behind. Thank you, colleagues.

Thank you very much. Philippe, just some reactions.

Thank you, Your Excellency. Just reacting to some of the comments that we've heard and also the guiding questions, I think there was very strong support for the issue of enhancing capacity building. Is there value in an indicative floor for tax to GDP ratio? I think the room was not very-- I mean, a country will tax income will depend on, on its capacity, not on a, a number written on a piece of paper. And there are even suggestions for firm commitments with regards to ODA, uh, in that respect. Uh, I think, uh, uh, Josephine made very good comments on the second question here on finding illicit financial flows. Her presentation was very complete. I think the last question, which we did not answer, was the ECOSOC financing integrity. I think we should refer back to the excellent work of the FACTI panel, the Financial Accountability, Transparency and Integrity, and their proposals. I think that would be a very, very good way to advance with regards to this this ECOSOC proposal. Then we heard a lot as well about the importance of progressivity, the need to include strong language on IFFs, tackling tax evasion and corruption, the need not only for a national enabling environment but also an international enabling environment, that informal sector inclusion is to target tax evasion, but it should also protect the lowest earners. There's a need to rebuild tax system in post-conflict countries. There's a need for multilateral mediation mechanism for stolen assets, for asset recovery. Also, a very interesting proposal on taxing tobacco, sugar, and alcohol to combat non-communicable diseases. Need to increase spending on agri-food systems and food security. Adapting agricultural subsidies, their elimination, and their compatibility with WTO rules. the importance of having customs revenues for DRMs. And finally, I think there was a strong support for tax cooperation through the UN tax convention. So I think these were very, very targeted and specific comments for our text. And I thank you very much for the invitation. Thank you.

Thank you very much, Hans, for bringing out some of the issues that we didn't really touch on, like the financial integrity. the design of it. I think we saw India recognize that proposal. So I'm glad you touched on that. Now we have Ms. Siri. If you could just give us your reactions, also anything that we may have left out if you want to comment on that too. Thank you so much.

Merci.

Thank you. I think that we've had a good discussion, both within the panel and also in the room as a whole. We've heard a number of interesting proposals. I don't think I'll summarise them all, but I can just cite a few of them. We talked about budget reallocation rules and the SDGs. We need to make recommendations very carefully, so is the to take into account the specific needs of countries, particularly those facing specific difficulties. We need to build capacities for tax administrations in developing countries. That's extremely important even for addressing illicit capital flows. We need to strengthen cooperation in tax. That will also help to address IFFs, we need to look at reforming the international financial architecture so as to take in bear in mind both developing countries in governance systems and also at the same time to ensure that we address their concerns. I think that These are all some of the steps that should be looked at closely as we finalize the document. Thank you.

Thank you so much. Let me, on behalf of my fellow co-facilitator, Ambassador Merete, thank each and every one of you for the active engagement in this discussion. DRM indeed is the most largest share of domestic of development financing. We really need to press forward on this one. I'd like to thank our panelists for their presentation and the discussions that reacted to those statements. With zero minutes left, really mine is to really just ask that you stay where you are and allow us to change the podium. We guarantee that the next discussion will even be more interesting for you. Thank you so much.

Well done. Okay.

Sorry.

Alright.

Thank you.

Thank you. Thank you.

Distinguished delegates, good morning. We shall now begin the discussion on international development cooperation. I am pleased to welcome our distinguished presenters for this discussion. Ministers, excellencies, distinguished delegates, on behalf of my fellow co-facilitators, it is my pleasure to moderate this panel discussion on international development cooperation. International development cooperation represents a critical source of financing in many developing countries. However, rapidly rising demands coupled with recent reductions in ODA program at the country level and announcements of significant further aid cuts are putting scarce resources under increasing stress. Growing fragmentation is also increasing transaction costs and runs counter to longstanding effectiveness principles. There is an urgent need for the entire development cooperation ecosystem to work better as a system with a focus on poverty eradication and on catalyzing other sources of finance, both public and private, for long-term sustainable development outcomes in developing countries. Actions on international development cooperation in the draft outcome include commitments to reverse the decline in ODA, work towards meeting respective commitments and increasing its quality, as well as more and better South-South and triangular cooperation and MDB financing. The draft also contains commitments to update the development cooperation architecture at the country level, strengthening country led plans and strategies, and putting in place inclusive coordination platforms to support these and at the global level. Panelists in this session are invited to pay particular attention to their interventions on the proposals on enhancing contributions of multilateral development banks, including scaling up local currency lending, strengthening the development cooperation architecture at the national level, and on strengthening accountability and follow-up on international development cooperation as part of the FFD process. I invite the panelists to respond to the following guiding questions. How can concessional financing by MDBs be further increased over the next 10 years? What steps could be taken to enhance provision of local currency products? How can international development cooperation, including ODA, more effectively respond to the needs and priorities of developing countries? What are conducive arrangements at the country level for effective provision of development cooperation and for ensuring alignment of development cooperation with national priorities and needs? Another one is how can we make the most of existing platforms and fora to enhance inclusive monitoring, accountability, and follow-up on international development cooperation at the global level? Would the role, scope, and functions of existing platforms and fora need to evolve? How can they support a strengthened development cooperation forum? We shall now hear presentations by our distinguished panelists, and I would kindly remind all of them to be concise and concrete in your interventions. You will have four minutes for your intervention, and I invite you to speak specifically to the first draft of the outcome document and how you want to strengthen the actions for a strong outcome in Seville. I now give the floor to Mr. Sergio Vinocor Fornieri from the Ministry of Foreign Affairs of Costa Rica. You have the floor, please.

Thank you, Madam co-facilitator. I'd like to begin by expressing my thanks for the invitation made to Costa Rica to participate in this panel. We also greet all of the delegations with us today to address this fundamental topic as we look ahead to the conference in Seville. Turning now to the questions, the first relates to concessional financing. We believe it's important to expand access and improve conditions for international credit. On these conditions, we should not only look at the GDP of states but also other structural factors, climate risks, fiscal constraints, debt sustainability challenges and other challenges such as security and migration flows. On conditions, we should also recognise countries' investment to maintain and preserve their natural capital, including in resources such as water, forests and energy. The use of innovative instruments shouldn't Concessional loans should not replace ODA, which remains crucial for middle and upper middle income countries. In this regard, we should also consider innovative instruments such as green bonds, blue bonds, the SDG related bonds and also debt for development or debt for nature swaps. Turning to the second question. How can we make sure that ODA responds to the needs and priorities of developing countries? Our position is as follows. The Seville Conference is a unique opportunity to recognise that development is multidimensional and we need to develop indicators that go beyond the GDP and are linked to the three dimensions of sustainable development. These indicators should be applicable not only to concessional financing but also to official development assistance. With this in mind, the development in transition approach, which starts from the basis that development is multidimensional, is very useful. We know that there is a multidimensional vulnerability index, but there are also other indicators that should be considered or established bearing in mind the different realities of developing countries. Mobilising private sector resources is important but complementary. Much has been said about blended financing, which plays an important role, but what is missing in the declaration is a more relevant reference to multi-stakeholder cooperation and, in particular, to public-private partnerships, which are essential for mobilising private resources at the national level. South-South cooperation and triangular cooperation play an essential role. that they should be considered as complementary and not as a substitute for official development assistance. The dual role of middle-income countries as both recipients and also providers of cooperation must be recognized. The effectiveness of cooperation is fundamental. Cooperation therefore should be aligned with national priorities. It should be designed for the long term and it should be predictable. Fragmented, unaligned or conditional programming can lead to inefficiencies or even distortions in public policies. Turning to the third question, platforms and forums for greater accountability. Without data measurement is impossible and without measurement the impact and effectiveness of cooperation cannot be evaluated. But there's something else, if there's no official reliable data our aspiration to have multidimensional indicators is even more complex. Hence the need for close cooperation in this area between multilateral regional and national bodies along with the responsibility to report. These constitute a cornerstone to cooperation. In this regard, the Development Cooperation Forum must be strengthened as a key UN forum for inclusive, transparent and political monitoring of international cooperation. We also believe that it's important to complement this with platforms that significantly contribute to generating data and recording cooperation, such as, for instance, the TEOSSD International Forum, to which our country and at least 16 other countries in Latin America, Africa and Asia are members. Similarly, we value the contributions made by other regional bodies such as CELAC, which has led the development in transition approach in Latin America and the Ibero-American General Secretariat, SEGIB, which has developed robust tools to measure and assess South-South and triangular cooperation. The interaction between the UN and these bodies can strengthen the quality of monitoring, providing contextualized data and can generate more useful recommendations for countries in transition. To conclude, We know that we are facing a context of multiple crises in the geopolitical, commercial and financial spheres. Combined with systemic problems, several countries are reducing development cooperation and financing. However, Costa Rica is convinced that reducing development cooperation is not the way forward and that if that trend were to continue, we would have an even less stable world with more conflicts in the future. History reminds us of this. In light of this paradox, in the current context and the founding ideals of the United Nations, we need to strike a balance and ensure commitment from all parties. The Seville Conference should represent a turning point in financing for development. As Winston Churchill said, wonderful are the great strides that can be made when there is a determined purpose behind them. And Costa Rica encourages us to bear this in mind as we look also ahead to the conference in Seville. Thank you.

Thank you very much to Mr. Sergio Vinocour Fournier from Costa Rica. I will now give the floor to.

Mr. Durst from the Swiss Agency for Development and Cooperation in Switzerland. You have the floor, sir.

Excellencies, dear colleagues, thank you very much. Let me try to offer some thoughts on these questions. Increased concessional financing of MDBs. There are basically two sources there. One is public money from governments, but as we all know, unfortunately, ODA will not increase. At least in Europe, we know why. I mean, this is a tragedy for international development cooperation. Second source would be profits from MDBs. So that is why we have to continue to work and push them to work, to increase their efficiency and their effectiveness, that they become better. I think so far they have done a good job. The evolving MDB agenda, I think, is one of the more dynamic areas of FFD. But of course, we have to push them to work as a system, also make sure that they maintain the triple-A rating, which allows them to refinance at low rate and therefore have some revenues which they can use for concessional financing. On enhancing local currency products, this is not really my specialty, but we have heard a lot of good ideas these days. I would say go local, support national development banks, develop local financial markets, access to financial services. invest in the last mile, as the UN Capital Development Fund calls it. Maybe also one word on remittances. Personally, I do not understand why it's so difficult to tap them better. I mean, this is a huge local currency potential to be used, and maybe some new ideas are needed there. Second, how better respond to the needs and priorities? It sounds simple, I mean, listen to the partners. Go local also here, this needs some boots on the ground. Localization is the new buzzword and I think for good reasons. Maybe one advice to partner countries, be bolder, say no to support that doesn't respond to the needs and priorities. Donors might be taken aback initially, but I think they should be grateful because in times of limited resources, nobody wants to invest resources in activities which do not respond to the needs and priorities. What are conducive arrangements at the local level? I would say ensure efficient local coordination, maybe also helped by the UN, by the RC system. Use existing structures. I would mention maybe here the integrated national financial frameworks, INF, for planning, or also the TOST, the total official support for sustainable development by OECD. These might not be perfect formats, but they have been gaining traction and I think they should be given a chance. Generally, with ODA decreasing, there is no alternative to focus on efficiency and effectiveness. We have to do better with less. I do not like the term we have to do more with less. That would be beautiful, but I think that is not realistic. We have to do better with less, and that is certainly possible. On ensuring alignment of development cooperation with national priorities, yes, of course. My favourite point is that we should really try to reduce and fight fragmentation. The trend goes completely in the wrong direction and this is a loss of resources that we cannot afford. So why not try, maybe also push for pooled funds or why not try budget support 2.0? It was considered a silver bullet some 15 years ago, but obviously it was not a silver bullet and much went wrong. However, I think we have learned some lessons. Switzerland, as well as the EU, are still continuing to provide budget support, although on a modest scale and mainly at subnational and sectoral level, and I think this could be further explored. Of course, you have to think long term. With that, I mean, we could catch two flies. On one side, we could really put back the, the partner countries in the lead and also reduce fragmentation and transaction cost. On the last question, how to make most of existing platforms and forum, well, Again, use the existing structures first of all, use them better, use them broader. Maybe with regard to monitoring, I may point that GBDC, which is the only kind of multi-stakeholder platform including civil society, private sector and the UN, they recently formed their monitoring tool and I think this is worth to consider. Last point on strengthening development cooperation forum. We are a bit sceptical on that. My guidance is that form follows function, so we should be clear about the purpose. There is a need to clarify that first. Of course, it should not duplicate other fora and should be complementary. Thank you very much. I do not have a quote from Churchill to end, but I hope it was useful. Thank you.

Very useful, Mr. Duest. And I would like now to give the floor to Ms. Carolina Krajulak. Did I say it right? Yes? Krajulak, Ministry of Foreign Affairs, Department of Development Cooperation of Poland. Ms. Carolina, you have the floor, please.

Madam President, Excellencies, distinguished delegates, dear colleagues, as it was emphasised over the past days, the upcoming FFD conference presents an important opportunity to accelerate action towards a renewed global financing framework for sustainable development. It is a critical moment to take action to narrow the global financing gap for achieving the SDGs and linking all sources of financing, public and private, domestic and international, to the implementation of the 2030 agenda. The FFD4 will take place in a significantly altered political, social and economic environment. Poland remains concerned about the profound impact of the evolving global landscape, marked by geopolitical tensions, disruptions, and persistent crises and conflicts, which increase fragility and vulnerability in financing for sustainable development. Poland, which is now holding the rotating EU presidency, feels the sense of urgency and responsibility. Our choice of building resilience of partner countries as our priority theme for our presidency has not been made by chance. We want to encourage and foster partnerships with the view to eradicate poverty and promote socio-economic development. It is also critical to deepen cooperation with private sector and international NGOs. Excellencies, even though each country has primary responsibility for its own economic and social development, no country is able to confront complex challenges of today acting alone, especially countries in special situations. Therefore, we must ensure stability and predictability of financing for development, including appropriate capacity building for developing countries. Poland highlights the importance of full equality between women and men, including in public life, in access to education at all levels and in the labour market, as a fundamental factor driving economic growth and social development. gender equality and human rights-based approach to development should be at the heart of international development assistance. The decline in ODA is not a temporary drip. It's a signal that the model is overstretched and overdue for reform. We must use limited resources to trigger systemic improvements, not to just fill the gaps or react to crisis. There is a growing need to find ways to make sure that ODA serves as a catalyst for leveraging other public and private sources of financing, such as domestic resource mobilization, blended finance, and sustainable private investments. The FFD4 is also a chance to broaden the global development finance agenda beyond ODA. The UN's universality and legitimacy, utilizing its convening power towards generating political will, can complement the DAC's technical and monitoring role. Together, these platforms can drive greater integration of debt sustainability and SDG-linked investment, stronger alignment between incentives and performance on governments, reform and resilience, IFIs and MDBs that better channel resources to where they matter most. Thank you.

I thank Ms. Karolina Krygula from the Ministry of Foreign Affairs and Department of Development Cooperation of Poland for your presentation. And we will move now, distinguished delegates, to the remarks by the discussants. And in this regard, I would like to invite our discussants to share reflections on the guiding questions and the comments by our panel. You have three minutes for your intervention. And I would like to give the floor first to Ms. Hassatou Diop Seyle, Vice President of Finance and Chief Financial Officer at the African Development Bank Group. You have the floor.

Thank you very much. Good morning, dear excellencies, delegates, and ladies and gentlemen. International development cooperation is critical, but today we face a sobering paradox needs are rising and yet concessional resources are shrinking. Several donors have already announced further cuts and aid is increasingly redirected towards short term security or domestic agendas. At the same time, fragmentation of development efforts is diluting impact. So what we need now is not just more money, but a more systemic, effective and catalytic approach to development cooperation. We need less fragmentation, more synergies and enhanced cooperation with vertical funds within MDBs with a country focus rather than an institutional or sectoral or thematic focus. The same way that the G20 has asked MDBs to work as a system, the whole aid architecture needs to work as a system, donors, MDBs, vertical philanthropies. This will increase efficiency, delivery and impact. So with regards to local currency, MDB needs to increase their risk appetite for the provision of local currency loans and work together on specific countries. But more importantly, MDB should continue to lead and work together on the development of local currency financial markets. This is the solution. No developed countries go to international capital markets. They go through their own markets first, which is not the case for Africa. With regards to MDB Corporation and how it can move the envelope, the SDR channeling that the African Development Bank has developed in collaboration with the African Development Fund, with the Inter-American Development Bank, increase the lending capacity, the risk, it can increase the risk appetite of MDBs to be able to do more with regards to not only concessional financing but local currency markets. A second example of MDB Corporation and which respond to the question on the ODA is Mission 300, which is an initiative which is aiming to connect 300 million people in sub-Saharan Africa to electricity by 2030. This is a country platform launched by the African Development Bank in collaboration with the World Bank this year, and already we have 12 national energy compacts which have been launched with $126 billion in identified needs. The model combines country-led reforms, blended finance, and joint MDB coordination, all tracked in real time. It exemplifies a scalable country-owned result-based platform model. So this is what international development cooperation must look like today, system-wide, country-owned, outcome-based, and catalytic. But to succeed, we need three things, we need to recognize that MDB innovations can stretch every dollar, dollar, dollar.

The distinguished Mrs. Hasatu Diop Seleh. And I would like to give the floor now to Ms. Mary Beth Goodman, Deputy Secretary General of the Organization for Economic Cooperation and Development. You have the floor.

Thank you very much, Your Excellencies. It is wonderful to be with you today, although the situation does look quite different. than it was when we met almost a year ago last July at the first PrepCom in Addis Ababa. According to the latest OECD data, official development assistance fell in 2024 by 7.1% in real terms compared to 2023. It was the first drop after five years of consecutive growth and pressures on development finance are increasing. We are working now to develop projections and models to reflect the drops in ODA that we've already seen in 2025. We hope to be able to share these by the conference in Seville. At the same time, our 2025 global outlook on financing for sustainable development highlighted that the financing gap in developing countries is set to swell and could reach $6.4 trillion by 2030 without a major reform of the global system. The cost of inaction is simply too high, and therefore the OECD is fully committed to achieving an ambitious outcome in Seville, as we hope all are here as well. International development cooperation is a small but important piece of the puzzle, and many parts of the outcome document do point at ways to better leverage the highly concessional finance in support of development. These include reinforcing the effectiveness of international development cooperation, including through the Global Partnership for Effective Development Cooperation, strengthening country-led plans, such as the integrated national financing frameworks with deeper exchange among stakeholders, increasing technical assistance and capacity building efforts, and also accelerating private finance mobilization, including through the improvement of the business environment. We also support the outcome documents objective to reinforce the accountability of stakeholders through an enhanced follow-up and monitoring mechanism. The OECD will continue to actively participate in the enhanced, I'm sorry, in the interagency task force, compile data and key performance indicators as we did with the input for the FFD elements paper. We believe Seville should be viewed as the beginning of a process for the next 10 years to help countries improve development outcomes and economic growth. And we also see opportunities for the OECD to engage in the implementation of the outcome document and contribute to the Seville platform for action. The OECD will propose actions in other areas of the document. Many of you have said in the past few days that Seville will be a test for the multilateral system. Hence, it is important for all stakeholders to work closely together, consolidate existing platforms and build coalitions rather than risking.

I thank, uh, very much, uh, Ms. Mary Beth Goodman, Deputy Secretary General of the OECD. And I would like to give now the floor to Mr. Matias Wenderski, Manager of Global Partnerships of the Inter-American Development Bank. Matias, you have the floor.

Thank you.

Pleasure to join for this important session. You can count on the Inter-American Development Bank to contribute to a meaningful and actually oriented FFD4. We have been fully engaged in the preparatory process, providing technical inputs and building partnerships towards Seville, while of course mindful this is a member driven process. I would like to highlight some of the areas where we see opportunities to strengthen the outcome document and deliver concrete results. First, capitalize on MDB reform. We welcome that the first draft recognizes the current reforms by MDBs to become better and bigger, respecting MDBs governance. It could also Um, acknowledge the progress being made to be more impactful and efficient, a road to deepen, uh, going forward, second, more efficient use of donor res- uh, contributions. In, in a, in a context of declining ODA and rising global uncertainty, MDBs are uniquely positioned to maximize the leverage, the impact and the additionality of donor resources, the document could be clear about this, for example, by including a standalone call to scale up the use of guarantees by MDBs and highlighting other in, uh, financial, uh, instruments. innovations like SDRs mentioned by my colleague of the African Development Bank. Third, new approaches to boost private sector investment. With IDB Invest, we're rolling out a new business model called to originate to share, which allows us to take more risk and free up capital for additional operations by selling portions to private investors while keeping skin in the game. and this ensure development impact. At peak, we expect that originate to share model will finance 2.5 million MSMEs and create 9.5 million jobs in Latin America and the Caribbean. We will discuss this model in the International Business Forum and it is a positive thing that will be, that is already mentioned in the outcome document. Fourth, more and better tools for disaster risk management. This is a growing momentum to expand the use and broaden the scope of the debt clause, the debt pause clauses like the CRDCs. IDB has been pioneering in this field and we see an opportunity to make progress in Ceville. Last, we should scale up innovative solutions to address foreign currency risk. Evidence shows that foreign exchange volatility is a major barrier to private investment in developing countries, particularly today. MDBs are developing new tools to mitigate and protect against currency risk. One strong example is our program Eco Invest in Brazil, which could be adopted in other interested countries. Thank you very much. We look forward to continuing partnering with you for a successful FFD4.

Thank you very much to the Manager of Global Partnerships of the Inter-American Development Bank. And with that, distinguished delegates, we will move to open the floor for comments or questions regarding the presentations that we have just heard. Delegations wishing to request the floor should indicate their intention by pressing the button on the microphone console. Before giving the floor to the first speaker, I kindly request delegations to observe the time limit of two minutes for interventions. In this regard, we reserve the right to adjust time limits as necessary in case of a long list of speakers. And to ensure proper interpretation, delegations are asked to speak at a normal pace and to provide a written copy of their statements to these statements at least two hours in advance of delivery. In order to keep track of time, a countdown clock will be visible on the screen to alert speakers when it is time to conclude their statements. As necessary, the microphone will be automatically deactivated when the time limit has elapsed. And I now would like to give the floor to my distinguished colleague, Ambassador of Nepal, my friend, co-facilitator, Ambassador Lotta, you have the floor.

Thank you. Thank you, excellencies, distinguished delegates. Now, I give the floor to the distinguished representative of Pakistan, who is speaking on behalf of the G77 and China, to be followed by the distinguished representative of Tuvalu, who is going to speak on behalf of the Pacific Small Island Developing States.

Thank you, co-chairs. I have the honor to deliver the statement on behalf of the G77 in China. Allow me to briefly outline the G77 priorities in this section. First on ODA, the group is pursuing the following, reaffirming the unique indispensable contribution ODA makes in international development cooperation, securing a commitment to the 0.7% ODA target, as well as a political commitment to reversing recent cuts in ODA, securing a commitment to enhance the quality of ODA, including by enhancing ODA provided in the form of budget support, a more precise definition of ODA to exclude non-development costs, and increasing the proportion of grants in ODA. Second, on MDBs, the G7 is pursuing a commitment to triple MDB lending as well as to capital increases, supporting proposals for facilitating SDR re-channeling through MDBs, improving MDB lending terms, including enhanced concessionality, longer tenure loans, and scaling up lending in local currency. Third, on expanding access to concessional finance, the group would like the document to reflect a commitment to utilize measures beyond GDP to determine access to concessional finance. cooperation, the group supports a commitment to country leadership and ownership, untying aid, reducing fragmentation, promoting transparency and mutual accountability, and enhancing predictability through multilayer cooperation agreements and core funding. And we support strengthening and reinforcing the UN's leading role as the most inclusive organization in norm setting and monitoring of development cooperation through strengthening the DCF. fifth on climate finance, the group's priorities are reaffirming the principle of additionality of climate finance, including through a clear commitment to avoid double counting of ODA and climate finance. I thank you.

I thank the distinguished representative of Pakistan speaking on behalf of the G77 China. Now I give the floor to distinguished representative of Tuvalu who is speaking on behalf of the Pacific Small Island Developing States, to be followed by Uruguay and Argentina. Tuvalu, you have the floor.

Distinguished co-chairs and co-facilitators, I have the honour to deliver this statement on behalf of the 12 Pacific seats represented in New York. We welcome the progress since the zero draft. Amid rising global uncertainties and challenges to multilateralism, stronger international cooperation is vital as continued reductions in ODA exacerbate vulnerabilities and undermine SEEDS development progress. We call for ODA to be ring-fenced for SEEDS in recognition of our special case for sustainable development and our right to development. To allocate resources equitably, we strongly urge the full integration of the MVI in the outcome document to accurately reflect the structural vulnerabilities and elevated cost SIDS face in responding to external shocks. With limited physical space, the FFD4 outcome must offer physically neutral options for advancing national priorities. Some of these key proposals include, one, rechanneling STRs through MDPs to expand access to concessional financing. Two, strengthening donor coordination through joint programming and cofinancing frameworks at the country level. And three, reducing remittance transaction costs by addressing persistent correspondent banking challenges, particularly in the Pacific. In closing, ODA must be deployed strategically and effectively to catalyze private capital, federal contributions, and domestic resources mobilization. In the Pacific seats, fisheries are a cornerstone of food security, employment, and public revenue. Targeted ODA for fisheries management and resilience can unlock long-term revenue and physical stability. Therefore, strengthening ocean monitoring systems supported through ODA will enable accurate valuation of marine resources, including an asset by foundation for sustainable blue financing, enhanced protection. Thank you.

I thank the permanent representative of Tuvalu speaking on behalf of the Pacific States. Now I give the floor to, uh, distinguished representative of Uruguay to be followed by Argentina and Ecuador.

Thank you very much. Good facilitator. Good Good afternoon to colleagues and congratulations to the countries that have been working on this, particularly Uruguay. Grants particular importance to the section on international cooperation for development as a pillar of our national foreign policy. We firmly believe in its potential to drive public policies that are inclusive and aligned with the SDGs. We nonetheless see a gulf between the legal framework around the SDGs and current practices, which means that we need to reverse current dynamics and adjust cooperation flows to the needs of developing countries. It is urgent to reverse the trend of shrinking levels of ODA and the exclusive use of GDP per capita for determining access to financing. We continue to face structural gaps. We have been excluded from concessional financing and cooperation. In Seville, we need to reaffirm our political intention to revise our traditional criteria and make them fairer, going beyond GDP to ensure international cooperation. We also firmly support the call for transitions for middle income countries in this area. We also value the suggestion to align national plans with an international architecture and also the SDG indicators, particularly 17.3.1 in the SDGs. Finally, we wish to underscore the strategic role of cooperation for scientific sector. Uruguay continues to play a key role in the academic and technical sphere and also fellowships. Thank you.

I thank the distinguished representative of Uruguay. And now I give the floor to the distinguished representative of Argentina to be followed by Ecuador and El Salvador.

Thank you very much, Mr Co facilitator, and good afternoon. Argentina agrees that international cooperation for development is facing a critical moment in terms of access to funding for developing countries. Here we reiterate the validity of the pre-agreed guidelines on financing for development as well as the need for a high level UN conference on South-South development. We also underscore the importance of South-South and triangular cooperation as a complement but not a replacement for North-South cooperation and we reiterate the need to ensure that members of the OECD CAD to honour their commitments for in this area. To ensure that international cooperation can more effectively respond to the needs and priorities of developing countries, it is crucial to advance to change the assessment of national needs and also look closely at graduation criteria. These should be adjusted beyond simply GDP per capita. A multidimensional form of measurement should contemplate indicators that are useful in the development process in all developing countries, including a multidimensional index on vulnerability. This would allow us to improve eligibility criteria for access to concessional, non concessional and other forms of development financing, including technical assistance and transfers of technology. It is also necessary to include an approach that allows us to provide appropriate tools for those countries that need assistance in their transition towards sustainable development. To improve national level mechanisms, we should also promote the involvement and ownership of beneficiary countries.

I thank the distinguished representative of Argentina. Now I give the floor to the distinguished representative of Ecuador to be followed by El Salvador and Honduras. In the meanwhile, distinguished delegates, I would like to inform you that we have closed the list of speakers because we have already received many requests for the floor. Thank you so much. Now I give the floor to

Thank you, co facilitator. Middle income countries such as Ecuador face challenges that cannot solely be measured by per capita income, as has been underscored by other delegations such as Costa Rica, Uruguay and others from the global south. These structural vulnerabilities that are climatic and social limit the development capabilities. Therefore, multilateral development banks should adopt more comprehensive criteria and provide tools that are tailored to each national context, allowing us to reduce the high cost of indebtedness. In Ecuador, we support innovative mechanisms such as guarantees, blended financing and others that allow us to mobilise resources for public policies in biodiversity, food security, health and others. To strengthen accountability at the global level, we need to have monitoring systems based on timely, accessible, disaggregated data. Ecuador believes it is fundamental to renew our global cooperation architecture with common standards for reporting and multidimensional indicators, as well as inclusive revision mechanisms that are participatory in nature. Uh, would like to underscore our pro tempore, uh, chairmanship, uh, this year, which will, uh, come to an end this year, we, at this recent summit, we reaffirmed our, um, position. position here which believes that we should take a comprehensive approach taking into account the three dimensions of sustainable development and addressing the adverse impacts of uni-dimensional criteria. In this context, Ecuador underscores what was said by Spain yesterday on behalf of the Ibero-American region. This commitment is in line with the suggestions made by the G77 and China negotiating group.

I thank the representative of Ecuador. Now I give the floor to the distinguished representative of El Salvador, to be followed by Honduras and Cuba.

Excellencies, co-facilitators, El Salvador has sent our full statement to the Secretariat. El Salvador wishes to stress the intrinsic link between international cooperation and financing for development, which are both fundamental to achieving our sustainable development priorities that are agreed internationally. In this context, we recognise the importance of official development assistance and the crucial role played by the development assistance committee. While South South and triangular cooperation are complementary, they do not replace the specific, necessary and robust financing that is needed to effectively address the specific needs of middle income countries. Turning to the architecture of financing for development, El Salvador calls for a comprehensive revision which would go beyond per capita income metrics, which would incorporate a perspective bearing in mind issues such as the quality of education access to health care vulnerability to climate change and reducing the digital divide despite the global trend towards shrinking non-refundable finances financing sources El Salvador has made significant headway in international cooperation particularly through its South South and triangular cooperation here we stress the importance of mobilizing more resources to strengthen priority areas for sustainable development these include quality education comprehensive healthcare, early childhood care, food security and nutrition, as well as climate action, innovation, technological development and AI. International cooperation and financing for development that is both robust and adaptable are essential to building an equitable and sustainable future. El Salvador reaffirms its steadfast commitment to participate actively together with the international cooperation to achieve the goals set out in the for the fourth international conference on financing for development. Thank you.

I thank the distinguished representative of El Salvador. Now I give the floor to the distinguished representative of Honduras, to be followed by Cuba and Kenya. Honduras, you have the floor.

Thank you very much, Mr. co-facilitator. We stand at a decisive point, 10 years, uh, following the Addis Ababa action agenda. Uh, we are facing a complex current situation marked by crises and, uh, increasingly ambitious, uh, levels of development. This means that we need to rethink our development goals. alliances and how we mobilize resources. Multilateral development banks must redouble their efforts so as to provide financing on favorable conditions, particularly to very vulnerable countries. This means that we must align MDB's operations with the SDGs. They should develop sustainable financial products and establish mechanisms for co investment with other stakeholders, broadening access for middle income countries that face structural challenges. In parallel, we should improve the supply of financing in local currency, strengthening the national capital market and provide tools that reduce exclusion exposure to currency risk through cooperation with development banks, including moving to ODA now and international development cooperation. This should be more tailored to our national specificities in middle income countries such as Honduras. ODA continues to be insufficient to meet our development needs. We need to complement GDP with fairer indicators such as the multidimensional vulnerability index and promote mechanisms for more flexible mechanisms aligned with our needs while also simplifying processes and ensuring transparency and reducing fragmentation. Thank you.

I thank the distinguished representative of Honduras. Now I give the floor to the distinguished representative of Cuba to be followed by Kenya and Guatemala. Cuba, you have the floor.

Thank you, co-facilitator. My delegation aligns itself with the statement given by the G77 and China. And as we see the billions of dollars that developed countries are investing in the arms race, which demonstrates that there are sufficient public resources around the world to promote international development cooperation. South South and triangular cooperation are very positive experiences, but they are a complement to, not a substitute for, North South cooperation. In this context, we reaffirm the need to recognise international cooperation for development in its unique transformative role in financing for development. What we need to do is reaffirm and step up the commitments to ODA that have been made. The assistance that is received should be respected without conditions on the specific needs of the recipient countries. We should also reject unilateral coercive measures that today weigh on several developing nations such as Cuba. We also stressed the need to maintain a distinction between financing to combat climate change and that dedicated to development. Both objectives are important and therefore they shouldn't be brought together or shouldn't overlap, they should be kept separate. We also need to ensure more comprehensive metrics in defining access to financing for development that go beyond per capita income. Thank you.

I thank the distinguished representative of Cuba. Now I give the floor to the distinguished representative of Kenya to be followed by Guatemala and Bangladesh. Kenya, you have the floor.

Thank you, co-facilitator. Kenya also wishes to align with the statement made by Pakistan on behalf of the G77 and China. In our national capacity, we wish to maybe also emphasize the following. The reform of the development cooperation architecture as the basis for inclusive cooperation and partnership that meets the needs of developing countries and prioritizes country leadership and local ownership and accountability. Taking into account the different roles of the various development cooperation architecture platforms, and that is the DCF and also the GPDC. The primacy of country-led plans as being the basis of all development partners' engagement at the national level. In this regard, on para 32a, we emphasize implementation of the effective development cooperation principles and recommend that the text should be development partners align to country development plans and strategies, not just responding. We call for addressing fragmentation to strengthen country ownership and leadership and for delivery of programmes at scale and impact. We also recommend that the role of the GPDC, as agreed in Addis Ababa, need not to be weakened but strengthened to promote greater effectiveness of all types of development cooperation and support implementing the related national action plans, including monitoring of the same. The role of each platform that is DCF and GPDC needs to be strengthened and only and where the need be, there should be synergies, but not weakening each of their roles. I thank you.

I thank the distinguished representative of Kenya. Now I give the floor to the distinguished representative of Guatemala to be followed by Bangladesh and Nicaragua. Guatemala, you have the floor.

Thank you, Mr. Co-Facilitator. Guatemala aligns itself with the statement made by the Group of 77 and China. Furthermore, we reaffirm that international cooperation has been fundamental to promoting sustainable development, reducing structural gaps and supporting democratic strengthening processes. In contexts such as that that we face now marked by multiple crises and profound inequalities, we particularly value a cooperation that would be aligned to our national priorities, that would build capacities and promote a relationship based on shared responsibility. We are concerned that just as challenges are on the rise, the flows of ODA are shrinking or being directed. We believe that cooperation can't be reversed when it is most needed. It plays a critical role, particularly in developing countries with vulnerabilities and deep inequalities. In this context, Guatemala suggests strengthening mechanisms for coordinating, aligning and assessing cooperation, promoting multi-year agreements, greater transparency and institutional consistency. We also think that it's fundamental to review the eligibility criteria incorporating a broader gamut of indicators than GDP per capita. The Seville conference represents an opportunity to renew our global cooperation architecture. Facing common challenges, we shouldn't just be looking at resources, but rather ensuring more predictable cooperation with better results and having an impact on joint and sustained transformations. Thank you.

I thank the distinguished representative of Guatemala. Now I give the floor to the distinguished representative of Bangladesh to be followed by Nicaragua and Djibouti. Bangladesh, you have the floor.

Thank you, Chair. We appreciate the recognition in the draft that international development cooperation remains vital to realize the 2030 agenda. While the text reaffirms the ODA GNI target for LDCs, it lacks a time-bound roadmap to reach these ODA targets. ODA must be predictable, long-term, and aligned with country priorities, not diverted to emergency-driven or donor-prioritized projects. The recognition of South-South cooperation and triangular cooperation is welcome, but we must clarify its complementary nature. Developing countries cannot be expected to shoulder rising global financial gaps without a corresponding commitment from development partners. We support the vision of enhancing the effectiveness and coherence of development cooperation. The effectiveness of development cooperation should be anchored in country ownership and impact on the ground. Differentiated yet integrated initiatives for climate and development financing aligned with country-led priorities are also essential. Fragmentation persists not just among donors, but also between donors and recipient systems. They should be addressed through country-led plans and strategies. We appreciate the focus on leveraging the role of MDBs and the proposal for hybrid capital and SDR rechanneling. We call for the creation of a dedicated SDR-financed concessional window for LDCs to address their liquidity needs without increasing debt distress. We support the reference to transition strategies for graduating countries. To make this effective, these strategies must be institutionalized as a right, not a grace, and embedded in donor country or agency mandates. We cannot achieve sustainable development if graduation penalizes countries for progress. To conclude, development cooperation must not be fragmented charity, it must be structured solidarity.

I thank the distinguished representative of Bangladesh. Now I give the floor to the distinguished representative of Nicaragua to be followed by Djibouti and Nauru.

Thank you very much distinguished ambassador, Nicaragua aligns itself with the words of the G77, we reiterate that international cooperation for development is an essential component to fund our national priorities and move towards a truly sustainable development. In a context of increasing pressure on resources and global challenges, it is urgent to guarantee that cooperation is aligned with the priorities and strategies of recipient countries. We reject unilateral coercive measures that seriously affect our national development capacities and our access to international financing. These measures undermine the principles of cooperation and solidarity that should guide the multilateral system. and the architecture of cooperation should be strengthened both at the national and global levels through inclusive mechanisms for coordination led by countries themselves and with follow up effective monitoring platforms. We reiterate that South South cooperation based on solidarity and mutual respect is a strategic complementary pillar for our countries. Unlike north-south cooperation, which is very often full of conditions, South South cooperation reflects a willingness between kindred countries to reflect our priorities and move towards a more fair and inclusive world. Thank you.

I thank the distinguished representative of Nicaragua. And now I give the floor to the distinguished representative of Djibouti, to be followed by Nauru and India. Djibouti, you have the floor.

Thank you, co-facilitator. At the outset, I would like to specify that my delegation falls in line with the statement by G77 of China, as well as the position of the African group. We have the honor of making this statement on behalf of Djibouti as our national contribution. We are -- the position of developing countries is increasingly dire, and there's Reducing declining amount of ODA, there are growing challenges to be faced, fighting poverty, building indispensable infrastructure like roads, railways, et cetera, strengthening human capital through education, healthcare, social housing, et cetera, and a thorny issue of sustainability of debt. Many developing countries are facing very high levels of debt service which limits their budgetary space for financing national development plans including SDGs at their national level. The other challenge is climate change which affects our countries in different ways, rising temperatures, rising sea levels, droughts, flooding, etc. These elements may disrupt water supply and electricity and jeopardize the food security of populations. It may help to propagate new diseases as well. The public of Djibouti underscores that this jeopardizes the progress that we've been making for several years as a country. We call on the international community to provide more climate financing for vulnerable countries. Climate financing must be separate from ODA. Lastly, I'd like to state that there have been many promises made and now it is time to move toward action. We call on stakeholders to view FFD4 in Seville as a new call to action to try to attain the SDGs by ensuring that all living, all humans are living in peace and prosperity. Thank you.

I thank the distinguished representative of Djibouti. Now I give the floor to the distinguished representative of Nauru to be followed by India and Dominican Republic. Nauru, you have the floor.

Thank you, Chair. Nauru aligns itself with the statement delivered by G77 and China and P6. We speak today as a country on a path to graduation from ODA eligibility. Despite our structural vulnerabilities to offer our humble reviews for our esteemed panelists today, multilateral development banks must fundamentally reimagine how they engage with small economies. For Nauru, correspondence banking constraints hampered development despite full compliance with global standards. With this experience, we call for flexible financing tailored to our limited economic scale, local currency products to reduce exchange rate risk, risk sharing mechanisms and lower transaction costs. On development cooperation, we urge direct meaningful consultation that senses national priorities, simplified application processes, flexible frameworks that respond to our unique vulnerabilities, mechanisms that allow rapid response. Our upcoming graduation is based solely on GNI, an incomplete measure. We reiterate the PC's call to integrate the UN MVI into graduation criteria to reflect real world conditions. To strengthen accountability, we propose enhancing the development cooperation forum with dedicated seats representative, transparent reporting, broader performance metrics, recipient country participation in monitoring systems. Ultimately, development cooperation for small states, it's not about high volumes of financing, it's about targeted responsive and strategic support. We urge partners to move beyond one-size-fits-all approaches and embrace development as a true partnership grounded in the realities we face. Thank you.

I thank the distinguished representative of Nauru. Now I give the floor to the distinguished representative of India to be followed by Dominican Republic and Yemen. India, you have the floor.

Thank you, Chair. India views a holistic results-driven approach as essential to enhancing the quality, impact and effectiveness of international development cooperation. To this end, we advocate strengthening MDBs through fresh capital infusion, continued implementation of capital adequacy frameworks and the use of innovative financing mechanisms such as de-risking tools and guarantees to mobilize private investment and reduce capital costs for developing countries. We also encourage MDBs to prioritize local currency financing to mitigate currency risks. At the same time, we recognize that such operational matters fall under the purview of MDB executive boards. Regular MDB-led reviews of the MDB strategies and the alignment between resources and strategies would help track the evolution of the total MDB lending capacity in a way that supports the meeting of SDGs by 2030. Second, we urge the developed countries to fulfill their ODA commitments, increase contributions to concessional development financing, and provide essential technology and capacity building support. While ODA should align with the specific needs, development stages, and national priorities of recipient countries, allowing for flexibility for use of country systems will make ODA more effective. Third, we need to ensure development finance being distinct from climate finance and the document should avoid reference to work being undertaken under UNFCCC. Lastly, we emphasize the importance of effective implementation of development cooperation to ensure financing reaches critical sectors and welcome an enhanced role for the Development Cooperation Forum in promoting capacity building, knowledge sharing and best practices in the global south. Thank you.

I thank the distinguished representative of India. Now I give the floor to the distinguished representative of Dominican Republic to be followed by Oman and United Kingdom. Dominican Republic, you have the floor.

Thank you very much, Mr. Co-facilitator. The Dominican Republic recognizes the importance of this forum for our discussion on financing for development. In this context, we wish to stress some elements of the draft declaration which we think are important. As has already been mentioned by other delegations, we recognise the importance of ODA, not limited to non-refundable cooperation. It should also include south-south cooperation and various other mechanisms for cooperation, be they at the multilateral or bilateral levels. In this context we stress the importance of bearing in mind complementary measures of well-being going beyond GDP such as for instance the multidimensional vulnerability index. This is particularly important in the case of countries such as the Dominican Republic where we face vulnerabilities because we are a small island developing state. This means that the support coming from cooperation from developed countries should be aligned to the needs of our countries, helping us to strengthen our national planning and management policies for financial resources. We should also look at conditions that would favour action in climate change and the protection of the environment, strengthening the concept of global public goods. Finally, we recognize the importance of continuing to build our technical capacities for the mobilization of resources, taking into account all sources and actors in development on our territory. We recognize the important role of the national and international private sectors here. Thank you.

I thank the distinguished representative of Dominican Republic. Now I give the floor to the distinguished representative of Yemen to be followed by the United Kingdom and Colombia. Yemen, you have the floor.

Thank you, Your Excellency. Yemen aligns itself with the statement of the Group of 77 and China. We welcome the draft commitment to reverse the decline in development assistance and work towards meeting respective commitment as applied in paragraph 31a. However, three critical areas we encourage strengthening. First, we propose improving paragraph 32D on the humanitarian development peace nexus. While the draft mentioned enhanced cooperation, we need a dedicated paragraph establishing this nexus as a standalone framework to support countries transitioning from humanitarian to development assistance while addressing fragility roots causes. Second, regarding MDB reforms in paragraph 31H to P, Yemen strongly supports tripling lending capacity and scaling up local currency products, local currency instruments would reduce exchange rate risk that currently hamper investments, however, we urge adding provisions for streamlined access to guarantee mechanism to private sector engagement where government capacity is limited, our private sector has shown remarkable resilience but it faces… severe financing constraints due to the perceived risk. Guarantee instruments would enable investment in critical sectors where public institutions cannot yet fulfill their functions. Third, on national coordination platform in paragraph 33A, we urge strengthening language to address the specific challenges for fragile states. This platform must adapt to the context with limited institutional capacity. Yemen is already working to establish finance coordination mechanism despite immense challenges. Today's global realities demand a fundamental recalibration of investment priorities for fragile states with predictable multi-year financing that acknowledges these new dynamics. Thank you.

I thank the distinguished representative of Yemen. Now I give the floor to the distinguished representative of United Kingdom to be followed by Colombia and Chile. UK, you have the floor.

Thank you very much, co-chairs. I think someone said beautifully earlier this week that a new dawn is rising on international development cooperation at FFD4, and we really agree. We also agree with what many of the other speakers here have said, and we hope a key outcome from Seville will be a strong collective political signal on the need to tackle the fragmentation in the system. We can take steps to address this in the text by firstly supporting the G77 proposal on MDBs adopting mutual reliance frameworks, And we agree with Switzerland's remarks that MDBs working as a coherent system is vital to reducing this fragmentation. Secondly, by making a commitment to streamline policies and procedures, including in MDBs, making the system far easier for countries to navigate. Thirdly, supporting the language on encouraging closer UN IFI working, again at the country level, this is critical to improving coordination and the impact of our system. And finally, by bringing together national development, climate and biodiversity plans, we can maximize impact for both people and planet. These can then be supported by the actually really exciting conversation we're having on country platforms that place national ownership at their core and encourage all sources of finance and actors to align with these national priorities. On fragmentation, I really do think that we are all in lockstep and it feels like an area that in Seville and beyond, we can really actually work together to drive forwards. Finally, I just wanted to echo the really important point made by Yemen just now. With many countries in conflict and post-conflict situations at risk of being left behind, we must focus on development cooperation that supports peace in these contexts with a lot more vim and vigour. I thank

the distinguished representative of the United Kingdom. I give the floor to the distinguished representative of Colombia, to be followed by Chile and Spain.

Thank you, co-facilitator. We believe it's fundamental to move towards international cooperation that is more effective, aligned with national priorities and consistent with the urgent nature of global challenges. Therefore, it's fundamental to move beyond GDP per capita to access concessional funding. Many middle-income countries can face these challenges, which means that we need to take a more nuanced approach, a multidimensional approach in the way that we grant international cooperation guaranteeing that these vulnerabilities are duly considered is fundamental to promote sustainable development. Therefore, we need to expand and improve concessional financing, including for local currency products, which reduces currency risk, and MDBs should also look more at non-concessional and concessional tools. We should also address the fragmentation of multiple short-term projects We need sustained commitments with actions aligned with national development projects. These actions should be strengthened through coordination between the private sector and the public sector, as well as innovative mechanisms that use complementary capital. At a global level, the fragmentation in monitoring and accountability remains a challenge. We must move towards the unification of tools and indicators between platforms. We need a standardised tool which would improve standardisation and accountability. Finally, cooperation fora should be fully aligned with the commitments in the Paris Agreement, particularly in areas that need further adoption by countries. Thank you.

Thank you, co facilitator. I thank the distinguished representative of Colombia. Now I give the floor to the distinguished representative of Chile, to be followed by Spain and Iceland.

Chile, you have the floor. International cooperation for development remains a vital source of financing in light of increasing pressure on the reductions of programmatic aid and fragmentation, which weakens the effectiveness of the system. This situation not only affects international solidarity but also undermines our collective ability to move towards achievement of the SDGs. From the perspective of middle income countries, it's fundamental for the architecture to evolve to reflect our realities, taking into account our transitions. We often face structural challenges without access to concessional financing, and often we are marginalised from traditional financing because we have criteria that do not measure our vulnerabilities. We therefore support the draft in the way that it provides more systematic assistance for these countries, as well as a new subsection dedicated financing for development. This is a significant step forward, responding to the claims of many middle income countries. We support calls for concessional funding through MDBs and we prioritise the provision of local currency projects which would enable conditions for sustainable development. We also think that it's important to ensure coordination at a national level and have monitoring and accountability mechanisms. We think that strengthening the forum for international development will be key to ensuring consistency in the implementation of the commitments that we adopt in Seville. We reiterate the importance of a people-centered and equitable sustainable development. Thank you.

I thank the distinguished representative of Chile. Now I give the floor to the distinguished representative of Spain to be followed by Iceland and Cape

Verde. We wish to begin by expressing our thanks to the cofacilitators and we congratulate them for their excellent work on the first draft of the outcome document on cooperation for development. We support the commitment to 0.7% of GDP and we also think it's important to recalibrate development cooperation to address challenges such as biodiversity loss, climate change, effectively through cooperation with without losing focus on poverty, hunger, etc. These are multidimensional challenges that need comprehensive responses geared towards ensuring fair transitions. MDBs should improve access for developing countries to concessional financing, working with a system that is in favour of the SDGs and following the G20 roadmap. We need more funding also in the local currency, and we need to look at ways to mobilise more resources. We hope progress in the ways that concessional financing is granted based on indicators beyond per capita income and taking into account inequality gaps and vulnerabilities. We should also strengthen and build capacities to mobilise domestic resources and address illicit financial flows. We call for focus on the effectiveness criteria as well. We should look at the triple nexus and focus on gender in the financing agenda. Finally, we believe it's important to raise the profile of inclusiveness here, and particularly we reiterate the importance of South-South and triangular cooperation. Thank you.

I thank the distinguished representative of Spain. Now I give the floor to the distinguished representative of Iceland to be followed by Cape Verde and Burkina Faso. Iceland, you have the floor.

Thank you, co-facilitator. We must recognize that we stand at a critical juncture as total ODA looks set to decrease significantly this year. For the LDCs, the picture of stagnating or even decreasing external support has already been the case for several years. In the context of the ODA squeeze, the urgency of making sure that remaining ODA has a catalyzing effect in terms of financing is more pronounced than ever. Moreover, more efficient and purposeful coordination is required to reduce the level of fragmentation in international development cooperation and put national governments in the driver's seat. We need innovative ways to address financing challenges to be able to move the needle on meeting development needs and the ambition of the financing for development process. However, innovative financing solutions that are conducive to mobilizing private capital require sufficient grant funding to be effective. Similarly, enhancing DRM and tax systems requires investments which will realistically rely on ODA and must be prioritized. Clearly, the reduction of ODA does not reflect a decreasing demand for ODA. In fact, demand for ODA is higher than ever. With these dynamics at play, concessional financing by MDBs that are able to stretch ODA by leveraging financing from markets for development has a particularly important role to play. In this regard, ensuring progress on gender equality and human rights is pivotal as economic potential is not fully realized unless the entire population is empowered. Thank you.

I thank the distinguished representative of Iceland. Now I give the floor to the distinguished representative of Cape Verde to be followed by Burkina Faso and Liberia.

Thank you, Mr. Co-facilitator.

For those countries that celebrate Workers' Day, happy Workers' Day.

We would like also to reiterate that Cabo Verde welcomes and thanks this important draft outcome document of FFD4.

Cabo Verde aligns itself with the statements made by the G77 and China and the SIDS.

In our national capacity, we would like to add and emphasize the following. Development cooperation has played an important role in advancing the development of Cabo Verde. We recognize the challenges it faces now. For small island development states like Cabo Verde, development cooperation must be expanded, not reduced. Although it has to become more catalytic, inclusive, and focused on promoting resilience and building sustainable capacities. We call for the modernization of

development cooperation frameworks by integrating structural vulnerability and resilience building measures, including climate resilience and adaptation, sustainable development efforts,

and debt for development swaps. We further advocate for the use of vulnerability and resilience metrics, such as multidimensional vulnerability index, as a criterion in determining eligibility for development cooperation. We also urge the expansion of fair and equitable access to ODA, concessional and blended financing, while reaffirming that financing for global public goods must be additional and not come at the expense of national development priorities. Therefore, under the development cooperation chapter, we propose the inclusion of a separate paragraph or a section dedicated to eligibility criteria for international development cooperation to incorporate multidimensional metrics such as vulnerability and resilience.

I thank the distinguished representative of Cape Verde. Now I give the floor to the distinguished representative of Burkina Faso to be followed by Liberia and Brazil.

Thank you, co-facilitator. International cooperation remains a key driver of sustainable development through its capacity for mobilizing financing and technical cooperation. For a country like Burkina Faso, which is facing a multifaceted crisis, it represents a strategic lever for complementing state funding and for pushing us toward a resilient development model. In order to fully play that role, my state wishes that beneficiary states be able to play their role as well. The outcome document underlines that this cooperation toward attending the SDGs ought to allow for the financing of public investment. But its role is compromised by the fragmentation of aid and insufficient national ownership, as well as low coherence with national priorities. This dysfunction contributes to unjustified mistrust toward the capacity of beneficiary states to guide the coordination of aid in difficult situations especially. It's also urgent to have a relevant global indicator to better capture financing. Currently, only concessional resources are taken into account in the assessment of ODA, but non-concessional financing is becoming increasingly important. The draft document calls for designing a new indicator, and Burkina Faso supports that. In addition, my country commends recognition of South-South and triangular cooperation, which are complementary. In order to expand their scale, this kind of cooperation, ought to be further strengthened and supported by traditional partners and multilateral institutions. In closing, Burkina Faso reiterates its commitment to actively contribute to the.

Thank you. I thank the distinguished representative of Burkina Faso. And now I give the floor to the distinguished representative of Liberia to be followed by Brazil and Vietnam.

Thank you, Mr. Co-Chair, and thanks to the panelists for the presentation. Liberia Alliance's position with the G77 and China, as we look at the draft document FFD4, particularly on the issue of domestic resources mobilization and that of development cooperation, we think that international cooperation through ODA is very much important because it provides opportunity for peaceful coexistence of all countries. On this note, Liberia is recommending the following: that there should be an internal strengthening of domestic resource mobilization as part of ODA assistance to all developing nations. Secondly, tax transparency to reduce illicit financial flows should be one of the major targets for ODA usage across developing nations. Collecting beneficial ownership is very much important to ensure that there's transparency in each country to ensure stability of the economy and also support to financial services. Third, there's a need to strengthen country financial system architecture in which where domestic capital market can be developed to strengthen developing countries to ensure that there are coordination and mechanism for all financing operation in our region. Lastly, we are encouraging regional support in terms of developing MBDs to ensure that co-financing opportunities are there for private capital that will be invested in each developing nation. Focus should be more on blended financing, guarantees, and green bonds. Thank you.

I thank the representative of Liberia. Now I give the floor to the distinguished representative of Brazil to be followed by Vietnam and South Africa.

Thank you, Mr. Co-facilitator. At the outset, my delegation wishes to associate itself with the statement by G77 and the insightful points raised by Ambassador Vinokur Funea of Costa Rica in this panel. We fully agree that measuring development must account for its multidimensional nature, a critical consideration in ensuring equitable access to development finance. I would like also to underscore the importance of complementing the identification of innovative financial mechanisms at both local and multilateral levels with high level political dialogue on recentring development as the cornerstone of global stability and progress. While we recognize the imperative to enhance the efficiency and effectiveness of development cooperation, we must also address the growing fragmentation of development finance, which has become increasingly tied to thematic silos. A more holistic and inclusive approach is essential to ensure that financing aligns with national priorities and sustainable development strategies. Finally, Mr. co-facilitator, my delegation believes that prior to defining the roles of platforms for monitoring accountability and follow-up international development cooperation, we must first strengthen institutional capacities in developing countries particularly in management and oversight systems. Without this foundational step, we risk prioritizing data generation over genuine improvements in the ability of developing countries to manage

development effectively. I thank the distinguished representative of Brazil. Now I give the floor to the distinguished representative of Vietnam to be followed by South Africa and Republic of Korea.

Thank you, Mr. Co-Chair, distinguished delegates.

First, we express our support for the

call to enhance alignment with national plans, strategies, and strengthening existing national systems rather than establishing parallel structures. Accordingly, we advocate for relaxation of stringent environmental and social standards to ensure that such standards, as mentioned in paragraph 31O, while important, should not impede the flexibility and responsiveness of MDB and should facilitate better alignment with the diverse needs and priorities. The targeted higher level of flexibility in MDB lending operation should be encouraged in the outcome document.

Second, to further improve

access to concessional finance, we underscore the need for simplified and more transparent financing procedures of the climate funds. and calling for the climate funds effective support of green transitions and digital transformations.

I thank you.

I thank the distinguished representative of Vietnam. I now give the floor to the distinguished representative of South Africa to be followed by Republic of Korea.

Thank you to the co-facilitators. I would like to align with the positions of Argentina, Costa Rica and several others so far in noting that South-South cooperation is complementary to traditional ODA and development cooperation. And note that countries should not be punished with the mentality of if you have sufficient resources to support others, why ought we to support you? South-South provides an opportunity for the particular sharing of expertise between countries in similar development situations. Turning to the outcome document, we recognize the importance of blended financing, but we would like to encourage countries to be cognizant of the fact that the private sector will go where they see opportunity. Two issues arise out of this that must be guarded against in the outcomes document. The first is that the private sector's interests are not necessarily aligned to national priorities and country ownership, particularly when we see increasing withdrawal of bilateral ODA from the national level to regional focus. The opportunities for countries to get their national priorities into the program design is minimized. The second issue that the focus on the private sector we believe must be guarded against is overemphasizing the private sector at the expense of support to urgent social needs. We'd like to specifically highlight our concern with respect to the proposed changes and deletion of language concerning gender equality. We believe that gender equality cannot be separated from development and we run the risk of producing a document with vague social priorities but concrete language on private sector, which will have dire consequences for implementation and follow up. Finally, we align ourselves with the comments of India with respect to the need for increased commitments in light of the increased needs brought about by climate finance.

I thank the distinguished representative of South Africa. And now I give the floor to the distinguished representative of Republic of Korea, to be followed by European Network on Data and Developing Civil Society Affected Mechanisms.

Thank you, Mr. Chair. The current pressures on international development cooperation highlight an urgent need to adapt strategies and reinforce partnerships to meet evolving global challenges. Diverse ideas are being discussed and captured in the draft document to this end, and we should keep exploring ways forward in a constructive spirit. In this context, Korea wishes to draw attention to development effectiveness as a positive agenda and a common ground that we can all agree on to build trust. Korea would like to underline the significance of reaffirming the development effectiveness principles as supported by many countries and reflected in the current draft. The Global Partnership for Effective Development Cooperation, or GPEDC, a platform for inclusive dialogue on development effectiveness, brings together not only donors and partner countries, but also civil society, private sector, and other development actors. The GPDC has also built substantial expertise and robust data through these long-standing monitoring exercises. In particular, the ongoing 2023-2026 monitoring exercise with the participation of 59 partner countries highlights the GPDC's practical relevance and inclusiveness. Taking these elements into account, Korea believes that the GPDC, together with broader international efforts such as those led by the UNDCF, must be duly reflected in the outcome document, laying a strong foundation of effective development cooperation in the future. Thank you.

I thank the distinguished representative of Republic of Korea. excellencies, distinguished delegates, I now release the interpreters. I thank them for their support and for providing already the extension. So we have already received the many requests for the floor, but unfortunately due to the time constraints, we could not provide the floor to every delegations who requested for the floor. Now our last speaker will be European Network on Date and Development, civil society, effective mechanisms.

Yeah, thank you, co-facilitator. So this is an unprecedented moment in the history of international development cooperation. Aid budgets are being severely cut and real people are suffering the consequences. A more than 50-year-old commitment on 0.7 has all but been abandoned. FFD4 is an opportunity to respond swiftly and resolutely. So far, we are unmoved by the level of ambition in the negotiations. Our calls for major reform of the governance of IDC have so far gone mostly unheard. The current governance arrangements of IDC have landed us in this current quagmire and are in need of a major overhaul. A status quo approach will be a death blow to the entire system. On the current text, we welcome the proposal that values unmet commitments on ODA as an unpaid debt. We support the call for ODA to target poverty eradication, inequality, structural transformation, and the promotion of gender equality and women's empowerment. We align with the language that aims at creating the conditions that would make governments more accountable to their commitments on volumes, allocations, and targets so that more ODA actually reaches countries in the global south. We wholeheartedly contest proposals which seek to challenge the concessional character of ODA. This would undermine the integrity of the ODA metric. We are also skeptical of the numerous proposals to use ODA to mobilize private investment, which to us are out of touch with reality. On development cooperation architectures, we call for a UN-led process to reform the governance of IDC to make it more representative and democratic. We do support calls that emphasize the convening and norm-setting role of the UN, as well as the proposals that strengthen the role, mandate, and capacity of the UN DCF. The ambition behind our calls is to put front and center the needs of developing countries. We want clear proposals aimed at meaningful reform and a more equal balance of power, not for the sake of charity, but because there is a historical responsibility to support the development of countries in the global south. Thank you.

I thank the distinguished representative of European Network on Debt and Development Civil Society Effective Mechanisms. But now I invite the distinguished panelists to respond to the comments made and then questions posed during the presentations. Can I just remind that you will have only one minute to summarize?

Thank you so much.

Okay.

Okay. Okay. I would like to say that there is, there have been very important comments and observations concerning how we can go forward with this subject. I think what is important is that now to work together in order to have a consensus in order to arrive, to have a declaration in the summit of Seville. That's all because I think we are of the time.

Thank you, thank you, Sergio. And now I turn to Markus Dost.

Yeah, thank you, thank you, we heard a lot of, uh, fantastic interventions, a lot of good ideas, I don't envy the co-facilitators who have to reconcile that, maybe even to prioritize. But I sense some consensus, at least on what needs to be addressed. This is encouraging. It is more complicated on how to achieve. We heard a lot about fragmentation, working as a system, reforming the system, a lot of ideas there. First and foremost also, of course, to be more effective. There were several references in various forms to the development effectiveness principles. There is also some good wording in the text, I hope it will stay there. We have to do better with less, but the good news is that not everything requires money. I mean, by putting the right policy in place, by maybe more creative on that, by harnessing the potential of women, by leveraging the limited resources, guarantees, blended finance, so we have also to explore those ways.

Thank you, Markus. Now I turn to Karolina for her last comment. One minute, please.

Thank you, Mr. Co facilitator, and thank you all for your important and timely interventions. I think while we carry on the work on the draft outcome document, it is critical to focus on the few issues that were raised today during the discussion. First is continuing work on reducing fragmentation and ensuring coherence of the sustainable development cooperation Second, the important issue of engaging different stakeholders, including civil society and the private sector. Third, the importance of, as it was said also by Switzerland, now of doing better with less and focusing on efficiency. And fourth, I think it's very important to maintain in the text the reference to the nexus approach and reflecting the realities of the current challenges. Thank you.

Thank you, Karolina. ladies and gentlemen, I believe that we had the very quite stimulating discussions that provided us with numerous reflections. I thank the distinguished presenters and for their insights as well as all the delegations for their contributions. It was unfortunate that due to time constraint and high interest in the topic of the discussion, It was not possible to hear from all those who requested to speak. I hope you understand it. Now the Preparatory Committee will meet this afternoon at 3:00 p.m. in this chamber and will hold panel discussions six and seven. After the panel discussions, the second formal meeting of the Preparatory Committee will be held in order to close the first part of the sessions. The program and other information for the meetings of the FPT PrepCom are available on the eGov portal. Thank you for your participation. The meeting is adjourned.