(3rd meeting) Preparatory Committee for the Fourth International Conference on Financing for Development, Second Session

I call to order the third meeting of the second session of the Preparatory Committee for the Fourth International Conference on Financing for Development. I first invite the Preparatory Committee to resume its consideration of item one of its agenda entitled Election of Officers to proceed to the election of one of its Vice-Chairs. Pursuant to General Assembly resolution 78/231, the Bureau of the Preparatory Committee consists of three members of each regional group. At its organizational meeting on 23 February 2024, the Preparatory Committee was informed of the internal arrangements in place for the Group of Asia-Pacific States. whereby members of the Bureau from the regional group have agreed to an informal rotation, according to which they will resign in favour of another member after a designated period. Accordingly, I have been informed that Pakistan has relinquished its position as Vice-Chair in favour of Nepal. The Preparatory Committee will therefore proceed to the election of Nepal to complete the remaining term following the resignation of Pakistan. May I take it that the committee wishes to elect Nepal as vice chair of the Preparatory Committee to complete the remaining term of Pakistan? I hear no objection. It is so decided. Excellencies, distinguished delegates, I invite the Committee to continue its consideration of agenda item 5 to hear general statements. I would like to remind delegations of the announced time limits for statements during the general discussion as follows: five minutes for States speaking on behalf of a group of delegations, three minutes for those speaking in their national capacity, and two minutes for other speakers. In order to keep track of time, a countdown clock is visible on the screen to alert speakers when it is time to conclude their statements. In case speakers exceed their time limit, the microphone will be automatically deactivated after a one minute grace period for statements at the ministerial or vice ministerial level and above and for group statements. I apologize in advance if speakers are cut off. Kindly note that this measure is being taken to ensure that all speakers can deliver their statements in the limited time available for the general debate. Thank you in advance for your understanding. Full versions of longer statements can be submitted to the Secretariat. I now give the floor to His Excellency Sergio Vinokur Fornieri, Director of International Cooperation at the Ministry of Foreign Affairs of Costa Rica.

Excellency of the floor.

Thank you, sir. Costa Rica would like to thank the co-facilitators of this process and the United Nations system for making this second meeting possible. And allow us to participate in the academic area. We believe that they have made a major contribution which should be valued. We appreciate the effort in preparing the Elements Paper, which will undoubtedly serve as a basis for our discussions and therefore achieve a paradigm shift in financing for development. Nine years ago, the international community adopted a transformative agreement, the Addis Ababa Action Agenda. However, to date, there has not been enough progress in implementing its commitments. We must therefore act urgently. There are only four years left until 2030, so renewing an honest and sincere commitment to funding for development should not be an aspiration, but a collective responsibility to present and future generations. In this regard, Costa Rica wishes to highlight the following points that we consider to be the most pressing for the fourth conference. First, we must renew our commitment to multilateralism, that is, to an inclusive and effective multilateral system. capable of adapting to the turbulence of the times and tackling the crisis of the three dimensions of sustainable development. Secondly, adequate and quality financing is essential, with concrete commitments and deadlines to cover the financing gaps through all sources, including public, private, national and international. This financing must be green and blue, Thirdly, we must address the problem of sovereign debt to relieve the developing countries and thus achieve the fiscal space necessary for key social and environmental investments. Fourthly, Costa Rica advocates for a multidimensional approach to measuring the development of countries. taking into account the three dimensions of sustainable development, taking into account the concept of development in transition. My country therefore appreciates that the document contemplates the need to go beyond GDP as a basis for allocating development cooperation. We hope that the discussions of this week will contribute to the adoption of ambitious commitments at the fourth conference on financing for development. Thank you.

I thank His Excellency Sergio Vinokur Fornieri of Costa Rica for his statement. And I'll now give the floor to Her Excellency Ms. Monica Asuna, Director of Planning, National Treasury and Economic Planning of Kenya.

Thank you, Chair. Kenya aligns itself with the statements delivered by Uganda on behalf of G77 and China and the Democratic Republic of Congo on behalf of Africa states. We commend the efforts of the co-facilitators in consolidating the elements paper, which provides a good basis for discussion and designing stronger commitments for FFD4 outcome. Sustainable financing is critical for the realization of the sustainable development. However, access to affordable financing in required amounts remain a significant challenge for most African countries. Limited fiscal space remains a key hindrance to access to the needed financing. Therefore, a reform of the international financial architecture to make it fit for purpose is critical as a matter of urgency. Domestic resources remain the most sustainable form of financing. Therefore, combating illicit financial flows and the recovery and return of assets will help with the development financing much needed in Africa. We support the efforts towards establishing a UN framework convention on international tax compression, which will help governments curb aggressive tax evasion and avoidance, thereby boosting domestic resource mobilization efforts. Sustainable development cannot be realized without disaster risk reduction. Therefore, commitments in the FFD4 outcome should consider integrating disaster risk reduction in new financing frameworks and country level programs. In conclusion, Kenya calls for renewed and stronger commitments in the FFD4 outcome document. We should not weaken what was agreed on in the Addis Ababa Action Agenda, but should build on it and have stronger commitments. that can help countries of the global south recover from debt distress and realize the SDGs. Thank you.

I thank the representative of Kenya and I now give the floor to His Excellency Bashikoko Ferdinand, Permanent Secretary, Burundi.

Mr. Chairman, Burundi aligns itself with the statement delivered yesterday by Uganda on behalf of the G77 and China, and the DRC on behalf of the Group of African Countries. Burundi is delighted to participate in this second session of the preparatory process of the fourth International Conference on Financing for Development, and welcomes the significant progress that has been made since the adoption of the Addis Ababa Agenda. For Burundi, this framework remains central in order to guide global efforts on financing for sustainable development and to align financial flows with the sustainable development goals. Thanks to a series of initiatives such as the mobilization of internal public resources, private sector engagement, and the alignment of international support with national financing priorities, we have seen notable progress. It is clear that challenges remain and continue to be considerable despite the efforts that have been made. We have some observations relating to the outcome document of FFD4, namely: The mobilization of national public resources through the tax system must be strengthened by limiting illicit financial flows through national development banks and the digitalization of public services. These are key elements in order to build more robust and more resilient economies. Private financing for development through national and international financial markets as well as aligning private enterprise with development goals are essential for the mobilisation of investment capital. Private sector involvement will ensure that we have sustainable and equitable growth. International development assistance remains crucial, including South South cooperation and financing for climate action. These need to be strengthened in order to address the pressing needs of the most vulnerable communities. As regards debt sustainability, the least developed countries face severe debt challenges and do not have the necessary fiscal space in order to invest in their SDGs. Reform of the international financial architecture is essential in order to provide diversified financial mechanisms ranging from concessional loans to debt relief programs in order to get these countries onto the path of sustainable development. In conclusion, Burundi, as the co-chair of the preparatory process for FFD4, counts on the contribution of all Member States in order to manage to adopt in Seville, Spain, an ambitious outcome document and a well-balanced document and a clear and feasible roadmap that should take the shape, take the form of concrete commitments, bold action and necessary reforms to create a financial system that can support sustainable development. Thank you.

I thank the Permanent Secretary of Burundi. And I now give the floor to His Excellency Ernest Rwamukyo, the Permanent Representative of Rwanda.

Thank you, Chair. Rwanda aligns itself with the statements delivered on behalf of the G77 and China, the Group of African States, the Group of Least Developed Countries, and the Group of Landlocked Developing Countries. We commend the co-chairs for their leadership in preparing the elements paper. As we approach the deadline for the 2030 Agenda, Urgent and transformative action is required, and time is of the essence. The SDGs are off track, and we must act now to put in place the systems, financing, and policies that will accelerate progress. By taking bold, collective action, we can build a future of shared prosperity for all. FFD4 presents a unique opportunity to reshape the financing landscape with a focus on building a framework that supports the most vulnerable nations. We should leverage the FDD process to deliver an outcome that is both bold and actionable. Rwanda would like to outline some key priorities for this FFD process. One, increasing financial commitments to least developed countries and landlocked developing countries with a target of at least 0.15% of global GDP by 2030. This fund should prioritize sectors such as climate resilience, infrastructure, and healthcare where the needs are urgent. Second, prioritizing innovative financing mechanisms like blended finance, debt for development swaps, and private sector partnerships. These mechanisms can help expand the financial pool available for sustainable development in low-income countries. Third, addressing debt sustainability by implementing measures to tackle the growing debt crisis in many developing countries. Debt suspension, restructuring, and fair debt relief are critical steps to create steps for investment in sustainable development. Fourth, supporting technology and capacity building efforts in critical sectors, including renewable energy, healthcare and education. Investment in technology transfer ensures developing countries have the tools they need to harness new opportunities, build resilience to climate change and foster economic growth. And finally, strengthening South-South and triangular cooperation to encourage knowledge sharing, resource mobilization and collaborative partnership. This approach can be instrumental in advancing the SDGs by ensuring countries share expertise in key areas such as agriculture, health and education. I thank you.

I thank the Permanent Representative of Rwanda. And I will now give the floor to Her Excellency Lazarova, Permanent Representative of Bulgaria to the UN.

Thank you very much, Mr. Chair. Bulgaria aligns itself with the statement delivered yesterday on behalf of the European Union, and I would like to add a few remarks in my national capacity. Let me also express my appreciation to the co-facilitators, Zambia, Norway, Nepal, and Mexico, for the elements paper for the outcome document of the conference. The upcoming fourth International Conference on Financing for Development is the last major opportunity before 2030 to make good on our commitments to close the SDGs financing gap. As we engage in discussions on the priorities and expectations for the conference that will feed into the zero draft of the outcome document, there are four points to bear in mind. First, we need to make sure that the zero draft is ambitious and forthcoming in addressing the key financial challenges that stand in the way of the full implementation of the 2030 Agenda. In our view, the Elements Paper has that ambition. Second, success will depend on the strong partnership and collaboration that public and private authorities are able to forge at all levels. Only by working synergistically can governments, the private sector, and civil society ensure that economic development is inclusive and that it promotes good governance, human rights, and gender equality. Third, we must be guided by the realization that to achieve the desired scale and impact, traditional development assistance needs to be deployed alongside innovative financial instruments. Innovative forms of financing that blend public and private finance are key in terms of diversifying risk. And finally, digitalization should be prioritized. It can play an important role in bridging funding gaps, improving access to financial services, and fostering economic growth. Let me conclude by reaffirming Bulgaria's unwavering support for the process and the forthcoming conference, and we look forward to inclusive and constructive negotiations. Thank you.

I thank the permanent representative of Bulgaria, and now I give the floor to Mr. Amir, Ambassador Amir Sayed Iravani of the Islamic Republic of Iran.

Thank you, Excellency. On behalf of my PR, I deliver the statement. My delegation align itself with the statement delivered by the representative of Uganda on behalf of the G77 and China. Mr. Chairman, we are standing at a critical juncture as developing countries grappling with scaling challenges that demand urgent and unified actions. As we prepare for the fourth International Conference on Financing for Development, we stress the importance of delivering ambitious outcome that address the needs and priorities of developing countries through genuine international cooperation and solidarity.

In the conference, eradicating poverty must remain central to global development efforts.

Developed.

Must fulfill their commitments and ensure adequate financing to bridge economic inequalities and support sustainable development. The principle of CBDRs and right to development are vital and must be reaffirmed to underpin sustainable development corporations. A revitalized global partnership is crucial to overcoming sustainable barriers faced by developing countries. The financing gap for developing countries hampers progress towards sustainable developing goals. The FFD4 must deliver tangible actions to close this gap and enhance access to critical resources for all developing countries. Beyond financial support, technology transfer and capacity building are among the key priorities of developing countries that must be addressed in F54, a fair, multilateral economic, financial and trading system must address this need and empower developing countries. To ensure the success of the conference, it is essential to eliminate economic, financial, and trade barriers globally while reinforcing multilateralism with the United Nations at its core.

Hence, the conference must urge the immediate lifting of unilateral coercive measures, which weaken multilateralism and deepen global inequalities. Furthermore, reinforcing international financial institutions, especially the IMF and World Bank, is vital.

It is vital to guarantee equitable representation for developing countries in global decision-making.

Mr. Chairman, to conclude, the Islamic Republic of Iran stands ready to collaborate with other countries to ensure the success of Ff4.

And to build a just, inclusive global economic, financial and trade system that leave no country behind. I thank you.

I think the distinguished representative of Iran and I'll now give the floor to the distinguished representative of Morocco.

Good morning, Mr. Chairman. Excellencies, ladies and gentlemen, the Kingdom of Morocco welcomes the holding of this second session of the Preparatory Committee for the Fourth International Conference on Financing for Development, which will take place next year in Seville. This conference constitutes a crucial opportunity to foreground what needs to be done for financing for development, as well as to consolidate a climate of trust and confidence among countries in order to overcome multidimensional challenges that are hindering the achievement of the sustainable development goals. I would like to take this opportunity to congratulate the co-facilitators for the efforts that they have made in preparing the elements paper. This text will be useful in order to initiate and prepare for the negotiations of the outcome document, which should be adopted in Seville. Convinced of the importance of effectively contributing to the debates in this key process for the financing for development, the Kingdom of Morocco has shared its contribution to the outcome document. It did so in October. This focused on the priorities and expectations that the Kingdom of Morocco has. Without going back over the details of Morocco's position, I would like to share with you five key pillars that the Kingdom considers to be a priority for this process. Firstly, it is essential that the outcome document does not represent a backsliding from commitments already made in the Addis Ababa Action Agenda and other international financial commitments. Secondly, this document should adopt an impact-focused approach, including mechanisms for operationalizing the commitments, including those adopted in the SDG Summit document, as well as the Pact for the Future. Thirdly, regarding the internal mobilization of resources for financing for development, the Kingdom considers that, in addition to efforts to modernize tax systems, There should also be a further strengthening of the contribution of the public sector to create conducive conditions for the development of public private partnerships and to facilitate processes and procedures for the dispatch of migrants, which are also a source of a major source of financing. Fourthly, while also supporting the call for the reform of the international financial architecture, the Kingdom of Morocco believes that it is more than necessary For multilateral development banks to commit to putting in place more mechanisms to operationalize their, their financial mechanisms focused on the priorities of countries and the guidelines of the SDGs. Fifthly, middle income countries should not be left behind in the actions of the outcome document. We hope that the next text of the co-facilitators will take this concern into consideration and will encourage the international community and our partners to revitalize cooperation, the development assistance of those countries.

I thank the distinguished representative of Morocco. And I now give the floor to His Excellency Ambassador Gianluca Greco, the Deputy Permanent Representative of Italy.

Thank you, thank you, Mr. Chair.

Italy aligns itself with the statement delivered by the European Union and would like to add the following consideration on national capacity. First of all, we thank the Secretariat and the COFAX for circulating the Elements Paper and for the effort to combine different views and approaches. We know that a series of new initiatives is foreseen. We stand open to assess them carefully in light of their added value with respect to pre-existing frameworks. I can only anticipate that we would like to see.

A stronger focus on food security financing mechanism to improve fiscal space for food.

Security in developing countries and to take into due account the many drivers of food insecurity and malnutrition. Mr. Chair, financing for development has been prominently addressed during the Italian presidency of G7. The final communique of the G7 development ministerial meeting has called for an ambitious global response to the development challenges and multiple crises that are holding back the 2030 agenda. Prior to that, the G7 leaders met in June and committed to enhance the international financial architecture and its instruments to meet today's global challenges and expediting reforms. In to this respect, we welcome the considerable progress already achieved by the multilateral development banks, and we will continue to support the experience gained, in particular through initiatives such as the G20 capital adequacy.

Framework.

We are also committed to deliver new innovative instruments to increase financing and lending capacity. We also reaffirm the importance of providing significant concessional support to low income countries and we stand for a successful replenishment of the International Development Association and the African Development Bank next year.

Mounting debt burdens are constraining the ability of low and middle income countries to invest in their future.

We support initiatives directed towards early support of countries not yet in debt distress.

And underline the importance of debt transparency, calling about creditors participation in data sharing.

Mr. Chair, financing the SDGs will eventually hinge on mobilizing and pulling together funds from all sources. Italy is scaling up this approach, devoting key additional resources from different channels, notably with a strong focus on Africa. To reach this goal, partnerships are key. Strong alliances between public and private sectors is vital to bring in innovation, know-how, and investment. Let me quote two examples. Italy is working on the establishment of a new public-private initiative to boost the resilience of sustainability, value addition, and circularity of the coffee value chains worldwide. The new fund will work as a platform for voluntary participation to leverage innovative blended finance solutions and catalyze private investments through the efficiency of use.

Public capital.

On a different field, we are scaling up capacity building programs aimed at supporting the digitalization of the public administrations in many partner countries in the African continent, providing technical support and ultimately contributing to increasing transparency, efficiency, and accountability. We are committed to make sure that all these efforts sustain each.

Other and go in the direction of unlocking better financing and more ambitious.

Partnership to strengthen our collective action to accelerate implementation of the SDGs. Thank you.

I thank the distinguished representative of Italy, and now I give the floor to His Excellency Ernesto Soveron Guzman, the permanent representative of the Republic of Cuba.

Thank you, Mr. Chair, distinguished ministers, delegates, yes. my delegation aligns itself with what was stated by samira on behalf of the iosys and uganda on behalf of the g seventy seven and china time is shrinking as we move towards the fourth conference on funding for development. And we will soon be shouldering the major responsibility of negotiating an outcome document to constitute a true stride forward in implementing the Addis Ababa agenda and answering the demands to ensure mobilization of resources to meet the SDGs. We welcome the elements paper and we agree with its initial principle that the Addis Ababa action agenda and its seven areas of action must be the central programme framework to guide our endeavours when it comes to funding for development. We note that there are many ideas and proposals in the document which do not respond to the urgent needs of developing countries. and also there are major omissions of the proposals from the G77, China and OASIS. We observe that although certain initiatives and structures put forward as solutions could meet the needs of a specific group of countries, these are not necessarily suitable for the truly inclusive action consonant with the broad membership of the United Nations. We appreciate the inclusion of the request that the funding the forum for funding for development assess the impact of unilateral economic measures, be they financial or commercial, which are incompatible with international law and the UN Charter. However, it is vital that we promote real action, such as the commitment of Member States to eliminate these measures which are solely to the detriment of countries and are an obstacle to development. We plead again that the outcome of the fourth conference lead to specific actions to do away with the unsustainable debt burden, which is a millstone around the neck of the majority of southern countries. Haven't we paid this over and over? We continue to emphasize the need for urgent and ambitious reform of the international financial architecture, looking at international financial institutions and the structure and governance. This reform must be fair and be in line with the needs of funding for developing countries, considering their special circumstances. Cuba is committed to this process of an intergovernmental nature, and we urge that the international community act so that the outcome of this conference is not just one more document, but a true pact galvanizing mobilization of resources and promoting social and economic justice. Thank you.

I thank the distinguished representative of the Republic of Cuba, and I will give the floor to His Excellency Marcelo Escapini Ricciardi, the permanent representative of Paraguay to the United.

Nations.

Thank you very much, Mr. Chair. Paraguay aligns itself with the statements made by Uganda on behalf of the G77 and Botswana on behalf of the developing country, landlocked developing countries. Sir, the fourth international conference on funding, financing for development will bring together governments, international organizations and interested stakeholders to debate the financial challenges and those of a structural nature hampering sustainable development. It will play a vital role in shaping a collective vision to mobilise resources, forging alliances and providing solutions to overcome the obstacles, and its outcome document must reflect the ambitions and actions which are necessary to achieve this aim. Here, we would like to thank the co chairs of the preparatory committee for the elements document they have shared with us. This will provide a basis for our discussions. Distinguished colleagues, the deficit of funding and infrastructure such as energy, transport, and connectivity, the lack of innovative financial instruments and mechanisms, the unpredictability, inadequacy or decrease of official development aid, difficulties to attract sufficient FDI because of the risk that is perceived, the high cost of loans in global and capital markets, the low levels of fiscal income in general are only a few of the financial challenges faced by developing countries as they attempt to attain sustainable development. We also have the challenges and special limitations of those countries such as the least developed countries, developing countries without landlocked developing countries and small SIDS. These countries are up against specific challenges and obstacles. They need real commitments to help them to overcome these and have an increase in their financial flows, trade opportunities, and better capacity building and international cooperation more adapted to their specific needs. We'd like to appeal for the fourth conference on financing development. decide to take direct action for helping developing countries, it is urgent for us to redouble our efforts to explore innovative solutions so that we can mobilize resources, bridge the existing gaps, and arrive at that financing which is so necessary to achieve sustainable development and can provide a real response to the true legitimate claims of the most vulnerable.

Thank you. Mr. Cheikh Niang, the Permanent Representative of Senegal.

Thank you very much, Mr. Chan. The world has hugely changed since 2015. There is an uncertain economic situation which reduces the budgetary margin of manoeuvre of states. This is compounded by a continued erosion of confidence in multilateralism following many interconnected successive crises which overshadow achieving the SDGs, particularly in developing countries. Here, the fourth International Conference on Financing for Development provides a unique opportunity for bolstering existing efforts and proposing structural reforms on a global scale. Firstly, it is vital for the conference to support the implementation of a global financing framework, pivoting on reforms at several levels, national, regional, and global, in order to ensure inclusive, endogenous, sustainable development. These reforms aimed at improving the mobilisation of resources to enhance economic integration and correct asymmetries in the access to international funding, and at a global level, a reform of the rules of governance of the IFIs, such as the World Bank and the IMF, is crucial to ensure better representation more equitable representation of developing countries in decision making processes. This will make it easier to align global financial policies on the economic realities of these countries and facilitate their access to the necessary financial resources for the SDGs. At present, the criteria for access to concessional finance on the global market are often unfavourable for the PMAs and MICs, limiting their ability to achieve long term development projects. Integration would favour better mobilisation of resources, such as regional securities exchanges. The conference will be an opportunity to enhance international cooperation, combat illicit financial flows and corruption. Secondly, the conference should make it possible to examine the vital question involving the mobilisation of climate funding to encourage public private partnerships and funding projects linked to climate When it comes to climate funding, Senegal calls for enhancing international instruments such as the Green Fund for Climate, green bonds and particularly climate funding for adaptation in order to meet the specific needs of the most vulnerable countries to climate change. Then again, follow-up and monitoring is a central feature. Here, the conference could encourage the creation of a harmonized global framework to follow up financial commitments, emphasizing common indicators which would facilitate the evaluation of progress achieved by various countries. Thank you.

I thank the distinguished representative of Senegal, and I will now give the floor to His Excellency Matsetse Paul Nena, the permanent representative of Lesotho.

Distinguished co-chairs, I deliver this statement in alignment with those delivered by Uganda, the Democratic Republic of Congo, Malawi and Botswana on behalf of the G77, Africa LDCs and LLDCs.

Groups respectively.

My delegation expresses its appreciation to the co-chairs of the FFD4 for their outstanding leadership, which is complemented by the co-facilitators for the coordination and compilation of the elements paper. This document forms a solid foundation for an ambitious and forward-looking FFD4 outcome document, especially in addressing the needs of countries in special situations like my own.

While we agree with the proposed.

Set of innovative inputs in the elements paper, we would like to make the following proposals. We reiterate that the zero draft should incorporate financial commitments by developed countries and development partners to developing countries, as encapsulated in the Doha Programme of Action for LDCs and the new Programme of Action for LDCs, as well as the outcomes of the Pact for the Future, including its annexes. As the Pact for the Future recognizes that in an effort to close the SDG financing gap in developing countries, developed countries must enable, must scale up and fulfill their official development assistance to least developed countries, we are encouraged to know that the Elements Paper has taken this matter into consideration. We remain hopeful that the zero draft will incorporate ODA with even more bolder commitments focusing on long-term sustainable development that addresses the needs and priorities of LDCs in particular. On climate finance, we advocate for prioritization of climate finance to vulnerable countries in the outcome document. The main focus should be on the supporting mitigation, adaptation, and building national capacities for resilience. In an endeavor to achieve SDG 2 on hunger, we place great emphasis on financing for agri-food systems by targeting vulnerable groups such as small scale producers in LDCs. With regard to debt, we welcome proposals aimed at addressing the debt burden that consistently hamper national development. In particular, we advocate for the reduction in interest rates as well as extending the repayment periods. I wish to conclude by reiterating the call on the reform for the existing international financial architecture and the reinforcement of the commitment to strengthen the inclusiveness and effectiveness of the international tax cooperation at the United Nations. I thank you.

I thank the distinguished representative of Lesotho. And I'll now give the floor to His Excellency, Tofik Islam Shatil, Deputy Permanent Representative of Bangladesh.

Thank you, Mr. Chair. Bangladesh aligns itself with the LDCs and the G77 and China statements. Let me express our gratitude to the co-facilitators for the comprehensive elements paper, which captures the shared challenges of developing countries while reflecting our priorities and aspirations. As we approach the 2030 agenda deadline, financing remains the cornerstone of sustainable development. However, the widening annual financing gap estimated at US dollar 4 trillion threatens to derail progress. My country, Bangladesh, is preparing to graduate from the LDC category amid significant structural vulnerabilities and economic volatility caused by climate change, COVID-19, and geopolitical conflicts. Hosting 1.2 million forcibly displaced Rohingyas from Myanmar has further strained our economy and resources. We surely need bold and innovative solutions, including enhanced international development cooperation to address these multifaceted challenges. Mr. Chair, allow me to highlight a few key priorities. First, adequate, sustainable, and predictable financing is essential. Developed countries must meet their ODA commitments, particularly the 0.2% GNI target for LDCs. We, which remains at 0.09%, enhanced concessional financing with disaster clauses is critical for sustaining development momentum, including in the graduating countries. Secondly, reforms in global financial architecture are imperative, amplifying the voice of developing nations in international financial institutions and operationalizing debt swaps for climate and SDG initiatives are crucial. Addressing debt sustainability is also vital, especially for countries with rising debt burdens exacerbated by global crisis. Third, Bangladesh calls for the full delivery of the climate finance commitment made in the NCG. In line with the conclusions reached in COP29, LDCs should receive prioritized access to the fund. The resources must be additional to ODA and equitably allocated toward adaptation and mitigation efforts. The recently operationalized loss and damage fund must ensure timely disbursement of fund to address loss and damage compensation. Fourth, science, technology and innovation are enablers of sustainable development. Investment in STI, including capacity building and technology transfer, are critical for overcoming traditional barriers and leveraging emerging opportunities in trade, agriculture and industrial cooperation. Fifth, trade is a cornerstone of sustainable growth. Bangladesh urges extended special and differential treatments within WTO frameworks to support graduating LDCs, securing GSP+ facilities under favorable conditions is required to maintain export competitiveness of the graduating countries. Finally, Bangladesh is committed to inclusive and effective task cooperation at the United Nations. Efforts to combat illicit financial flows are also essential for mobilizing domestic resources effectively. I thank you.

I thank the distinguished representative of Bangladesh. And now I give the floor to the distinguished representative of Australia.

Thank you, Chair. Distinguished delegates, ladies and gentlemen, Australia thanks the co-facilitators for the Elements Paper and its focus on action-oriented proposals. We welcome the positive engagement from Member States, international organizations, and civil society. We are encouraged by the agreement of a diverse range of countries across the different action areas. We must harness this agreement to evolve the operation of the multilateral system to better meet the needs of all countries and the challenges we face. Strengthening voice and representation, including of the smallest and most vulnerable states, will boost impact. Country-led and context-driven approaches need to be at the heart of what we do together. The outcome document of the fourth Financing for Development Conference must accelerate action to drive implementation of the 2030 Agenda for Sustainable Development and achieve its Sustainable Development Goals. Development must be for all, by all, and driven by all sources of development finance, including domestic resource mobilisation, private investment and development assistance. The sources must complement and reinforce each other to deliver impactful outcomes. On domestic resource mobilisation, Australia is encouraged by the progress being made in the face of immense challenges. Countries who are willing to undertake ambitious domestic reforms to improve fiscal sustainability and build an enabling environment for private investment need to be offered a menu of support to maximize impact and sustain political will. To mobilize private investment, we must go beyond business as usual and reduce the SDG financing gap. Innovative financing tools and partnering with the private sector must be a focus of FFD4. Development assistance is most impactful when we also reinforce and facilitate domestic and private sector sources of finance. We must focus on practical steps to help overcome constraints. Development assistance must support global public goods, including combating climate change and pandemic preparedness. It must deliver development outcomes that place women and girls at the heart of what we do and support the most vulnerable. Australia is determined to play a constructive role and take action to support those most in need, including in the Indo-Pacific. We look forward to continuing to work with you towards a successful fourth Financing for Development Conference in 2025. Thank you.

I thank the distinguished representative of Australia, and now I give the floor to the distinguished representative of South Africa.

Thank you, Chairperson. Uh, South Africa wishes to thank the co-facilitators for their diligence in drafting the elements paper, which we believe is a, is a solid basis can, that can be further strengthened. I want to limit our comments to, to two areas we think are, are missing in the elements paper and that can be strengthened. One is on the cost of capital, which remains a critical challenge to developing countries being able to access the necessary scale of financial resources for SDG related investment. We therefore want to see a dedicated section in the FFD outcome document that relates to specific actions that will be taken to reduce the cost of capital for developing countries, to ensure that debt sustainability is not put at risk, and that would also create the necessary fiscal space for investment in SDGs. Specific commitments in this regard should include, one, to significantly reduce the cost of capital by 2030 to support SDG related investments. Two, to significantly increase the mobilization ratio of finance mobilized from public sources by 2030. For blended finance, this currently stands at just $0.75 on average per dollar of private finance mobilized for developing countries in general, but it falls to only $0.37 for low-income countries. Thirdly, to expand significantly the use of financial instruments in an equitable manner, such as first loss instruments and guarantees. And fourthly, to scale up the use of local currency financing, foreign exchange risk instruments, and climate resilient debt clauses into financing arrangements by 2035. The second point we wanted to make was regarding the balance of financing sources for development. A key concern for many developing countries is that developed countries are focused on trying to offset their obligations to make public sector finance available to developing countries by inappropriately crowding in the private sector or private finance. Private sector resources are not suitable for all sectors and countries, And are thus not a substitute for traditional ODA. Also, while concessional loans have better terms than market rate loans, they still demand repayments, further burdening developing countries with unsustainable debts. As such, there is a need to reverse the trend of increased concessional loans at the cost of grants. Grants cannot be replaced by concessional blended and other types of financing, while developing nations, while some developing nations may benefit from new mechanisms, many countries are at risk of being left behind. chairperson while financing from all sources is essential to address the sdg investment gap it is important that the fft process addresses the issue of finding the right balance between different sources of financing to ensure that development financing truly supports long term sustainability and does not inadvertently contribute to future debt crises thank you.

I thank the distinguished representative of South Africa, and I now give the floor to His Excellency Samuel Issachar, the Deputy Permanent Representative of Ethiopia.

Thank you so much, Mr. Chair.

Ethiopia aligns itself with the statements delivered on behalf of the Group of 77, China, LDCs, and African states by Uganda, Malawi, Botswana, and the DRC respectively. With just five years remaining until 2030, the SDGs are alarmingly off track.

This stark reality is largely attributed to the international

community's failure to mobilize the necessary financial resources to implement the SDGs effectively. This underscores the urgent need for collective actions and renewed commitments.

My delegation strongly believes that the Addis Ababa Action Agenda

remains a critical framework for financing sustainable development, mobilizing resources, and aligning international support with national priorities.

To move beyond the mere hope, it is imperative

to address the challenges in mobilizing development finance through concrete actions and pragmatic solutions. Mr. Chair, Ethiopia has been consistently allocated over 60% of its national budget to development. its annual national budget to advancing the SDGs. Recent policy reforms, including the liberalization of the telecom and financial sectors, have opened avenues for international investment, bolstering

domestic resource mobilization. These measures reflect Ethiopia's commitment to sustainable development and its determination to achieve the SDGs.

Despite these bold national efforts, they alone are insufficient to overcome the challenges of implementing the SDGs.

International cooperation is essential in this endeavor. Excessive debt servicing continues to drain our scarce financial resources away from

critical social services such as healthcare, education and infrastructure.

Climate change induced crisis further exacerbates the burden faced by developing countries.

Additionally, the outdated and unresponsive nature of the international financial architecture fails to meet the

demands of the current global financial landscape. These challenges, among others, underscore the need for a more coordinated and practical global response, which we hope to be

addressed in Spain next year.

In conclusion, Mr. Chair, we hope that these preparatory sessions will lay critical groundwork to effectively address existing challenges, ultimately contributing to the development of a robust outcome document for the FFID4 conference

in Spain next year. I thank you, Mr. Chair.

I thank the distinguished representative of Ethiopia, and I now give the floor to His Excellency Osama Abdel Halek, permanent representative of Egypt.

Thank you very much, Mr. Chairperson. I would like to thank the co-facilitators for their efforts in preparing the elements papers. We align ourselves with the statements of the G7 and the African group, and would like to add the following points. Reform of the global debt architecture is vital to make it fit for purpose to promote inclusive growth through establishing comprehensive and efficient mechanisms to manage debt distress in both low income and middle income countries in a sustainable, predictable and timely manner. It is not enough to introduce gradual reforms in the FFD4 outcome document. We need clear, transformative and action-oriented proposals for new structures and intergovernmental processes in this Settling for what is already there is no longer an option. The focus of every default should remain on its original mandate with the aim of addressing systemic barriers in the IFIs. and IFA and advancing the development financing solution that reflect the priorities and perspectives of developing countries. Addressing climate finance in this platform contradicts with and duplicates the work of our negotiations in the meetings of the parties to the UNFCCC and its Paris Agreement. FFD4 should not interfere with the ongoing work within the UNFCCC and its finance mechanism and obligations. It is also important to have concrete proposals on reforming the policies and practices of MDBs and IFIs to increase lending capacities to help developing countries finance their development needs. Due consideration should also be given in the outcome document to the issue of reallocating SDRs to developing countries based on their needs to enhance global liquidity. In addition to exploring ways to expedite and automate SDR issuance, especially in response to shocks. Promoting inclusive and effective international tax cooperation remains a critical prerequisite to the achievement of the SDGs. We therefore look forward to the successful completion of the process of establishing a framework convention on international tax cooperation. Throughout our discussions on the outcome document, it is important to avoid duplicating efforts and preempting discussion already expected to take place in the relevant ad hoc intergovernmental committee in this regard. Going forward in this process, it is necessary to have detailed text-based negotiations on the outcome document. I reiterate my delegation's full commitment to engage constructively in this process. I do thank you, distinguished Chairperson.

Thank the distinguished representative of Egypt, and I now give the floor to His Excellency Tomohiro Mikaragi, the Deputy Permanent Representative of Japan.

Thank you, Mr. Chair. I'd like to extend Japan's appreciation to PRs of Burundi and Portugal for convening this second session of FFD4 Preparatory Committee. We greatly appreciate the efforts of the co-chairs to draft paper for the outcome document, striking a delicate balance among over 300 inputs. For the sake of constructive discussions, Japan would like to shed light on the following points on which we believe we should further focus our deliberations. First, as the complexity and severity of global issues are increasing and financial gap is further widening, It is urgently required to mobilize financing from all sectors, including the private sector. In this regard, we appreciate that elements paper squarely address this point, and we hope that the expansion of the donor base of international cooperation, including contributions from emerging economies, will be further strengthened. Second, we should seek to strike a balance between strengthening financing for development and optimizing the use of limited resources, both of which are essential. In this regard, Japan considers that elements paper should allocate more space for the principles of effective development cooperation, including national ownership, inclusive partnership, transparency and mutual accountability. Also, in terms of issues to be addressed, it should further highlight those sectors most crucial to realizing the resilient society, such as disaster risk reduction, quality infrastructure, education, healthcare, peace building, and support for forcibly displaced people. Finally, while fully recognizing the urgent need to reform the international financial architecture, Japan would like to stress that all deliberations on this point should take place in close coordination with the discussion at the respective decision-making process of the governing bodies of the relevant international financial institutions. We firmly believe that there is no other way to chart a narrow path that balances immediate financial needs of developing countries today and the long-term sustainability of the international financial architecture into the future. Mr. Chair, we need a bold collective approach that prioritizes human security, strengthens cooperation, and accelerates progress toward achieving the SDGs. I'd like to conclude my statement by renewing Japan's unwavering commitment to engage constructively in the process of FFD4 to this end. I thank you, Mr. Chair.

I thank the distinguished representative of Japan, and I now give the floor to His Excellency Yassine Salah, the Deputy Permanent Representative of Tunisia.

Thank you, Mr. Chairman. Tunisia aligns itself, first of all, with the statement of the African Group and the statement of the G77 and China. We thank the facilitators for preparing this vital and very rich element paper. Financing for development in developing countries remains one of the main challenges that these countries face. in their pursuit of the sustainable development goals because many of them still need regular, flexible and sustainable financing to support their development and build their ability to address economic challenges. While we await with interest the fourth international conference to achieve its main goals in terms of coming up with solutions that could help developing countries achieve economic recovery following recent crises, we must also incentivise private investment and encourage effective public private partnerships as important contributions to financing for development. Mr Chairman, we underscore the need to improve the governance of financing, transparency in the distribution of resources and to facilitate access to financing, to use financing for sustainable impact projects. We need an international financial model that is equitable and inclusive. There is no doubt that wars and conflicts have had a significant impact on financing for development because significant financial allocations have been exhausted through wars and reconstruction to the detriment of financing for development. Tunisia joins the repeated calls for a reform of the international financial architecture so that policies can be oriented towards development rather than profit. We support the call to address the question of debt, which is weighing heavily on many developing countries, because a large part of budgets are being exhausted by debts instead of being allocated to development projects. We are also involved in the draft framework agreement to strengthen international cooperation in the area of tax. We support asset recovery in a more active way and accelerated fashion. We support mechanisms to combat money laundering, illicit financial flows, and we call for a great deal more attention to be paid to these issues at the next conference. We also support proposals to create an international development fund and also an international fund for disasters to allow for recovery from climate crises. We hope that the next conference will strengthen the dialogue between states in order to overcome the challenges of financing for developing countries. Thank you.

I thank the distinguished representative of Tunisia, and I now will give the floor to the distinguished representative of Belgium.

Thank you, Mr. Chair. Excellencies, ladies and gentlemen, Belgium aligns itself with the statement of the European Union. Let me begin by welcoming the publication of the co-facilitators' elements paper. We commend the co-facilitators for this broad and inclusive exercise and for producing a forward-looking and solution-oriented document. These proposals should not be seen as temporary fixes, but as a foundation to revise the Addis Ababa action agenda, addressing root causes and accelerating sustainable development in its three dimensions, including the promotion of human rights, gender equality, and good governance. Building on the outcome of the summit of the future, our objective is to make the multilateral system more inclusive, coherent, effective, and responsive to today's challenges, leaving no one behind. The paper contains several overarching principles. We would like to highlight three of them. First, the operational efficiency and effectiveness of the international financial architecture. We welcome the emphasis on enhanced coordination at global and local levels. FFD4 should seek to promote complementarity and synergies among existing fora, processes and initiatives to hold the growing fragmentation. We also support the harmonisation and streamlining of processes and modalities to improve the system's accessibility, responsiveness and value for money. In this regard, capacity building, technical assistance and knowledge sharing have an important role to play in ensuring ownership and accountability by programme countries. We also welcome the renewed focus on impact on the ground to ensure that global action benefits local populations. Second, tailoring interventions to specific needs and contexts. The paper offers numerous concrete proposals, emphasising that there is no one-size-fits-all solution. An improved FFD framework should allow countries to use a mix of measures suited to their specific needs and vulnerabilities, enhancing the relevance and coherence of our actions. Examples include differentiating between solvency and liquidity in debt management, varying degrees of concessionality, and using innovative financing mechanisms. Third, leaving no one behind. We appreciate the attention given to LDCs, SIDS and vulnerable populations, as well as to women and girls. In addition, we must take into account the needs of other marginalized groups, including those living in extreme poverty and fragile contexts. I thank you.

I thank the distinguished representative of Belgium, and I now give the floor to Her Excellency Ms. Nicola Claes, the Permanent Representative of Sweden.

Mr. President, Excellencies, ladies and gentlemen, Sweden aligns itself with the statement made by the European Union. Financing is at the centre of accelerating the implementation of the SDGs. We very much welcome the Pact for the Future and its annexes, the Global Digital Compact and the Declaration for Future Generation. It is critical to follow up on the commitments made. Sweden is proud to be one of the largest bilateral providers of official development assistance. We are a leading contributor to climate finance, humanitarian assistance, support to the development banks and the UN system. The reform of the international financial architecture is key. Sweden acknowledges calls to make it more representative of today's world. The voice of the poorest and most vulnerable members must be protected. This is a matter of ensuring the legitimacy of the institutions. Sweden holds a position as chair of the Development Committee of the World Bank Group and the IMF through our Minister for Finance. We will strive to ensure that the work of the committee is inclusive, constructive and effective. Development aid needs to contribute to mobilising additional resources on a new scale. We must maximise synergies between development, cooperation, private investments, trade and innovation. Here, green and digital transition provides many opportunities. We also see the potential of credit guarantees to lower the risk and increase incentives for investments. This year, the Swedish Government has proposed raising the ceiling for outstanding guarantees from USD 2 billion to USD 2.6 billion. The partnership with private actors needs to be strengthened. We are stepping up our collaboration with the private sector to tap into their know how and find innovative solutions. Driving national reforms to create favourable conditions for development is essential. FFD IV should help with aligning international support with national financing priorities. Every government is responsible for ensuring the fundamental conditions for investments and economic development. This includes promoting effective and inclusive institutions, transparent regulations and freedom from corruption, good governance, respect for the rule of law, Quality education, human rights and gender equality are also necessary in poverty reduction and sustainable growth. Together we can and must ensure an ambitious FFD4 outcome. Let me assure you that you can count on Sweden's constructive engagement throughout the process. Thank you.

I thank the distinguished representative of Sweden and I now give the floor to His Excellency Brian Wallace, Permanent Representative of Jamaica.

Thank you, Chair.

The fourth International Conference on Financing for Development in Seville next year will be held at a critical juncture in our global efforts to achieve sustainable development and to deliver a necessary paradigm shift in the international financial landscape that will path correct.

The inequities plaguing the global economic system, which result in undue burdens for small island developing states.

Firstly, we must collectively address the finance divide, which has been exacerbated by the pandemic, the changing circumstances in the global economic space, ongoing geopolitical tensions, and climate change. The need for innovative financing mechanisms and improved access to concessional finance is now more pressing than ever. Such mechanisms must tackle debt distress, and massively scale up affordable long-term financing for development and expand the contingency financing as a lifeline to countries grappling with crippling debt burdens. Secondly, the reform of the international financial architecture is essential. We must strengthen the voice and representation of developing countries in international decision-making, norm-setting, and economic governance. and increase investments in infrastructure and capacity building. We must enhance international tax cooperation and ensure that the benefits of global economic growth are equitably shared. In this regard, Jamaica welcomes the progress towards a UN framework convention on international tax cooperation, and we look forward to its elaboration through the intergovernmental negotiating committee in early 2025. Chair, the issue of climate financing remains a top priority for Jamaica. And while Jamaica has accessed a range of development financing facilities, we are cognizant that there is a need for greater concessionality in loans offered to small island developing states. International financial institutions typically use income classification to determine the interest rates which countries are charged. But this method does not account for vulnerabilities such as small size and scale, remoteness, climate change impacts, biodiversity loss, and narrow resource bases, which are common among SIDS and which may impact a country's ability to service debt. We therefore call upon donors, development banks, and financial institutions.

To incorporate the use of the.

MVI in its policies to inform decision-making on access to concessional financing and financial support. And we look forward to the rollout of the pilot projects of the index. In addition, lower interest costs and financing should benefit developing countries. We urge the international community to fulfill its commitments to provide climate finance and support for adaptation and mitigation efforts, maintaining the separation between climate finance and development finance. I thank you.

I thank the distinguished representative of Jamaica. And I now give the floor to His Excellency Mr. Nassim Gawaoui, Deputy Permanent Representative of Algeria.

Thank you, Mr. Chair. At the outset, allow me to commend the chairs of the PrepCom Bureau members and the UN Secretary for their valuable efforts in preparing this session. My delegation aligns itself with the statement delivered by the G77 and China and the African Group. Mr. Chair, we gather today at a critical moment in global economic development, where the promise of inclusive growth stands at a crossroad with persistent economic inequalities. In this regard, the international community must take bold, transformative action to support developing countries and create a more equitable global financial system. Mr. President, the current international financial architecture remains fundamentally misaligned with the economic realities and development needs of the global South. We must pursue comprehensive reform that, first, provide meaningful representation for developing countries in governance structures. Second, implement voting mechanisms that more accurately reflect the economic contribution and development challenges of emerging economies. Third, create multilateral platforms that genuinely incorporate the voice of middle-income countries in global economic policymaking. Furthermore, we need to create flexible financial instruments that can rapidly respond to economic shocks, climate emergency and development challenges, and expand access to affordable and long term financing for developing countries. Also, we stress the importance of ODA and other instruments of concessional financing and reiterate the call made to developed countries to meet their respective global commitment and significantly increase the volume of concessional finance available to developing countries. We affirm the need to reinforce the fight against illicit financial flows, which represent critical challenges. with an annual loss of 90 billion USD for African developing countries by strengthening international tax cooperation, creating binding mechanisms for information exchange and financial tracking, supporting developing countries in building sophisticated financial monitoring and enforcement capabilities, providing technical assistance and technological solutions for detecting and preventing illicit financial activity. Mr. Chairs, we must move beyond rhetoric and transform this principle into concrete, actionable frameworks. The international community stands at a pivotal moment. Our action today will determine the trajectory of global economic development for decades to come. To conclude, let me reiterate the support of Algeria to your efforts, and we look forward to further discussion in order to have an ambitious and strong outcome document of the fourth international conference on FFD. I thank you.

I thank the distinguished representative of Algeria, and I now give the floor to the distinguished representative of Sierra Leone.

Mr. Chair, Sierra Leone aligns itself with the statements delivered by Uganda on behalf of G77 and China, Malawi on behalf of the least developed countries, and the Democratic Republic of Congo on behalf of the African group. I would like to share the following remarks in our national capacity. At the outset, Sierra Leone acknowledges the vital framework established for financing for development, particularly the alignment of financial flows with the goal of sustainable development as outlined in the Addis Ababa Action Agenda. Mr. Chair, we stand at a critical juncture. Developing countries face significant financial vulnerabilities, and constrain physical space, which limit our ability to implement the 2030 Agenda and achieve the Sustainable Development Goals. This challenge is especially evident in the Global South, where many SDGs are off track, exacerbating poverty, inequality, climate change, and food insecurity. The Fourth International Conference on Financing for Development The adopted pact for the future and the World Social Summit represent complementary efforts to strengthen synergies and renew our collective commitment to achieving the SDGs. However, the economic growth of developing countries remains stagnated and progress on the SDG is hampered by overwhelming debt burdens. Many African nations are forced to make difficult trade-offs. in allocating limited resources, with some countries spending more on external debt servicing than on essential services like healthcare. In this context, the channelling of special drawing rights from developed countries to those in special situation is crucial for accelerating the SDG progress. Despite the IMF's 2021 allocation of 650 billion in SDRs, Africa received only eur thirty four billion less than five of the total while the european union with a population of less than half a billion received eur one hundred and sixty billion furthermore climate change continues to disproportionately impact countries in the global south leaving them struggling to access the necessary climate finance. We urge international financial institutions to provide climate finance that complement national development strategies and support huge mitigation. Debt for climate swaps should also be considered for LDCs, small island developing states, and other countries in special situations. There is an urgent need for a fundamental reform of the global financial system to ensure the meaningful participation and representation of developing countries at the highest levels of international financial institutions. Multilateral development banks must transform their business models to better leverage their resources and attract large scale.

I thank the distinguished representative of Sierra Leone and I now give the floor to her excellency, Ms. Karita White, the deputy permanent representative of Barbados.

Mr. Chair, it is my honor to deliver this statement on behalf of Barbados. Barbados aligns itself with the statements delivered by the G77 and China and EOSIS. For small island developing states like Barbados, the stakes in finance and for development are high. Our economies face disproportionate challenges stemming from vulnerabilities to economic shocks. and the compounding impacts of the climate crisis along with natural disasters. These realities not only undermine our ability to achieve the sustainable development goals, but also highlight the systemic gaps that persist in accessing sufficient amounts of affordable financing to address them. The fourth international conference on FFD, presents a critical opportunity to address these systemic inequities. Barbados welcomes priorities outlined in the Antigua and Barbuda agenda for SIDS, the African Climate Declaration, and the Paris Pact for People and Planet, amongst other agendas, which signal a convergence on what the world needs to address. We have also made our own contribution. A Roadmap Towards Reforming the Global International Financial Architecture. The Elements Paper reflects many of the key areas that the Prime Minister of Barbados emphasized during the UNGA general debate, as outlined in the third iteration of the Bridgetown Initiative, which focuses on three foundational principles for reimagining the international financial system. One, changing the rules of the game. The global climate and development financial architecture must be reformed to ensure fairness, inclusivity and alignment with sustainable development priorities. Two, shock proofing vulnerable economies. Addressing debt and liquidity in a comprehensive development focused manner, leveraging instruments like the special drawing rights is critical to enabling resilience and stability for countries like ours. Three, significantly scaling financing. This includes providing more, cheaper, long-term financing to allow countries to invest in resilience, but also to deliver on global commitments to biodiversity protection and fund for loss and damage. Here, global solidarity levies could be game-changing. Let us seize this moment to ensure that financing for development becomes a catalyst for hope, opportunity, and sustainability, not just for but for the global community where no one is left behind. I thank you.

I thank the distinguished representative of Barbados. And as our time on this session comes to an end, I still have a few speakers on my list for this session, namely Qatar, Guatemala, Antigua and Barbuda, and Austria, who will be the last speaker of the session today. With that, I now give the floor to her Excellency Ambassador Alia Ahmed Saif Al Thani, the permanent representative of Qatar to the UN.

Thank you, Mr. Chairman. I would like to thank you and express my appreciation for the efforts made to prepare for the fourth international conference. We congratulate Spain and thank them for hosting this conference. We join the statement of the group of G77 and China. The 2030 vision of Qatar laid the foundations of our political, economic and social development via support for all of the initiatives in our national development plan with a view to achieving sustainable development and to increase the level of growth. Growth has been at 5% since 2008. These achievements have contributed to financial management and strengthened the capacity of the economy to deal with external shocks. are supporting knowledge by supporting the private sector, innovative solutions and strengthening investment in human capital. The co-chairs have attached great importance to multilateralism and to accelerating the implementation of the 2030 Agenda. The outcome document will provide innovative solutions to overcome economic and environmental challenges, including in the area of the climate in developing countries, the least developed countries, while also respecting commitments in the Pact for the Future and related documents. The commitments adopted in the Addis Ababa Action Agenda have been picked up, including support for developing countries to help them overcome climate challenges and problems related to debt, while also supporting their ability to take advantage of digital transformations in order to address changes and shocks and also to overcome challenges, particularly as regards LDCs in light of United Nations reform. We underscore that Qatar will continue its support for international commitments via multilateral partnership. Thank you.

I thank the distinguished representative of Qatar. And now I give the floor to His Excellency Jose Alberto Briz Gutierrez, the Permanent Representative of Guatemala.

Thank you very much, Mr. Chairman. I should like to thank the co-chairs of Burundi and Portugal for having organized this second session of the Preparatory Committee. And my thanks also go to the co-facilitators for having prepared the elements document. You can certainly rely on the support and firm commitment of Guatemala to contribute actively and constructively to the process here. My delegation aligns itself with the statements from the group of middle income countries, the G77 and China. Distinguished delegates, since the Monterrey Consensus to the adoption of the Addis Ababa Agenda, the global context has significantly changed. In recent years, our vulnerabilities, our shared vulnerabilities, have shown up more, as have the deep existing breaches in access to financial and technological resources. Against this backdrop, we would emphasize how important it is that we are holding these interactive discussions this week. The areas we address should not be dealt with separately because they are interconnected and complement one another. For Guatemala, four key aspects must guide the process here. Firstly, global solidarity and confidence in multilateralism must provide the bases guiding us in our discussions. Secondly, We have to give priority to the creation of transparent, inclusive and binding financial structures. These should regularly monitor commitments, promote the participation of the various stakeholders and ensure accountability by means of Thirdly, mitigation and adaptation to climate change must take an important area in the agreements we reach, providing developing countries with the financial tools which they need for their adaptation. for a just transition. Fourthly, it is vital to promote development in multicultural and multi ethnic countries in respect of the diversity of the population and involving local actors in decision making. Lastly, we would call for maintaining the spirit of cooperation and solidarity which has marked this process. Only working together can we ensure that the Fourth International Conference on Financing for Development be the pivot point towards an international financial system that is more just, resilient and aimed at the welfare of present and future generations. Thank you.

I thank the distinguished representative of Guatemala and I now give the floor to His Excellency Thomas Blair, Deputy Permanent Representative of Antigua and Barbuda.

At the outset, I wish to align my statement with the statement delivered by Uganda on behalf of G77 and China, and some more on behalf of AEOSS. Additionally, allow me to extend sincere gratitude to the co-chairs and bureau of the preparatory process for the preparation of this element paper. The perspective that Antigua and Barbuda shares must be seen through the lens of being a small island developing state. where our unique geographical and socioeconomic framework positions us and all of the SIDS as countries in special situations, meriting appropriate global attention and tailored support. It is in this light that my delegation is concerned that the Elements Paper offers little specific on SIDS as we continue to grapple with environmental vulnerabilities, economic fragilities, and the existential threat posed by climate change. These elements, coaches, underscore the necessity for a nuanced approach to our development strategies, one that comprehensively addresses SIDS unique challenges and capitalizes on our distinct opportunities. One of the most significant hurdles we face is accessing finance that is essential for driving development and building resilience. The current international finance architecture often overlooks our specific needs and circumstances. prioritizing criteria that do not fully capture our vulnerabilities. While the Elements Paper captures very broadly access to finance for developing countries, Antigua and Barbuda calls for additional elements that would allow for urgent reform of access mechanisms to financial resources, ensuring they are aligned with our realities. Access to finance must be simplified, expedited, and more predictable, and must prioritize the development needs of Antigua and Barbuda and other SIDS. Co-chairs, it is imperative to engage in comprehensive reforms of the international financial architecture to ensure it is equitable, resilient, and responsively anticipates the needs of all developing countries. Antigua and Barbuda calls for systematic reforms that democratize decision-making and amplify the voices of states within international financial institutions. That includes reform of credit rating agencies. Another acute challenge that requires immediate attention in the context of FFD4 is the mounting debt burden that impairs my country's development capabilities. Many states, including Antigua and Barbuda, face unsustainable debt levels exacerbated by external shocks and disasters. While the Elements Paper attempts to treat debt sustainability in an inclusive manner, it does not go far enough for SIDS. Debt sustainability must be tailored given our unique vulnerabilities. Co-chairs, the MVI as outlined in the elements paper is misaligned and it links the MVI with graduation only and therefore limits how the MVI reflects vulnerability and can support financing for development in the face of multidimensional vulnerability. The MVI offers support that goes beyond graduation. I thank you.

I thank the distinguished representative of Antigua and Barbuda, and I now give the floor to His Excellency Stefan Petterhofer, the Deputy Permanent Representative of Austria.

Thank you, Mr. Chair. I would like to start by aligning myself with the statement held on behalf of the European Union and its member states. I would just like to pick up on three points. Firstly, the need to support the most vulnerable. As you know, Austria, together with Mongolia, was the co-facilitator of the new Programme of Action for LLDCs, which will be adopted still in December by the General Assembly. The document we have collectively produced is a comprehensive plan that contains ambitious goals, quantifiable targets and clear commitments to act. After adoption, we will all be called upon to walk the talk and to make good on our commitments, which will require the provision of adequate means of implementation. The fourth international conference for CIDS has adopted a new 10-year program of action, the Antigua and Barbuda Agenda for CIDS. And as you know, although Austria is a landlocked country, we have many challenges in common, first and foremost, climate change and environmental degradation. We are therefore hoping for an ambitious outcome document of this conference that will address financing for the triple planetary crisis of climate change, biodiversity loss, and pollution. This leads me to my second point, the need to make an unequivocal commitment to ensuring good governance at all levels and maintaining effectiveness, efficiency and accountability. The upcoming conference will be an opportunity to commit to strengthening national control mechanisms, such as supreme audit institutions, along with other independent oversight institutions. National supreme audit institutions can play a key role in providing oversight and in strengthening the good governance of domestic resources and external financial support. Furthermore, in a time of limited resources, we have to enhance synergies and coherence and reduce duplication and fragmentation, particularly with regard to ongoing work under various international fora, so that resources can be allocated effectively and efficiently. Thirdly, Financing for development is key not only to achieving the SDGs, but equally to peace and security, as well as to the upholding of human rights. We are therefore hoping that the achievements of the conference will contribute to building resilience and empowering national and local capacities to address and transform the root causes of conflict. Excellencies, Mr. Chair, in Austria you have a staunch supporter on all of these issues, and we are committed to taking the work forward together. And I thank you.

I thank the distinguished representative of Austria and with the concise recent interventions, it seems that we have time for one last intervention in this session today before we move on to the next part of our morning today. And with that, I will now give the floor to the distinguished representative of the United States, the floor is yours.

Thank you, co-chairs, for convening us in New York for this important step on the road to Seville, now with an elements paper in hand. The United States is committed to accelerating progress toward meeting the goals laid out in the 2030 Agenda. As the U.S. Strategy on Global Development makes clear, we recognize that no nation can address today's complex and interconnected challenges alone. As we have strongly stated throughout the FFD4 process and reaffirm now, the Addis Ababa Action Agenda remains as relevant today as it was in 2015. A concise, actionable FFD4 outcome complementing the framework established in Addis will bring the greatest benefit. This elements paper synthesizes many good ideas. Our task now is to focus on the areas that foster consensus and offer the greatest development impact. We commend the co-facilitators for reflecting in the Elements Paper the importance of domestic public resources, private investment, and international public finance. Over the years, the FFD process has increasingly emphasized international development cooperation at the expense of other sources of finance. The United States is the largest provider of official development assistance, but larger still are the untapped reserves of funding for meeting the SDGs to be found in domestic public resources and private investment. We urge FFD4 to focus more on these areas, in line with the ideas set out in Addis of country ownership of the development process and the primacy of domestic policies governance and resources in advancing development aims. Toward this end, we commend the facilitator's specific mention of the importance of policies that promote good governance, anti-corruption efforts, international labor practices, social and environmental sustainability, and transparency in attracting financing. Respect for human rights and the rule of law are similarly essential in supporting long-term sustainable development. Consistent with our commitment to the Addis Agenda, the United States has led a comprehensive effort to evolve the multilateral development banks. While we recognize the multilateral system should be further strengthened, including by improving the effectiveness and efficiency of the UN system, we underscore the importance of upholding and respecting the authority, independent mandates, and roles of other processes and institutions outside the UN. We look forward to collaborating broadly to deliver on the promise of the 2030 Agenda and the Addis Agenda as we take this next step on the path to the fourth International Conference on Financing for Development. Thank you.

I thank the distinguished representative of the US. And with that, we have just heard the last speaker for this meeting. We shall continue with the list of speakers for general statements on Friday, December 6, at 10:00 AM in this conference room. We will now take a brief pause to rearrange the podium before starting the first interactive discussion. Please remain seated. Thank you.

Excellencies, distinguished delegates, we are happy to resume and invite you to the committee to resume its consideration of agenda item 4B. and thereby hold its first interactive discussion on domestic public resources. So the Elements Paper was introduced at the opening meeting yesterday morning, and I believe there is no need for further introduction. I will therefore open the floor for the interactive discussion, and you take part by pressing your microphone button. I would like to remind speakers of the announced time limit of three minutes for interventions in order to give all those wishing to speak the opportunity to do so. And 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. And now let's see if we have, we are having a speakers list, so I have the pleasure of first giving the floor to the distinguished representative of Spain. Spain, you have the floor.

Distinguished Chair, representatives, we find ourselves in a process to achieve international fiscal cooperation to make it more inclusive and effective. We have to ensure that the fiscal standards meet the needs of countries going beyond cooperative taxes and contributing to social justice throughout the world. We welcome the specific and ambitious proposals in the Elements Paper, many of which tally with Spain's priorities. Spain supports progressive national fiscal systems and a minimal global tax for great wealth. We have to have discussions on the fiscal principles and minimum standards, green fiscality, includes the elimination of subsidies for fossil fuels and combating illicit financial flows, these are other of our priorities. Spain is committed to the UN Framework Convention on International Fiscal Cooperation and we urge all to participate actively and constructively to reach an agreement. We need to display flexibility to agree what decision making system we should have. We must also make progress on fiscal transparency, enhancing the abilities of developing countries to apply the standards of exchange of information and simplifying certain forms here. We propose that there be a global register of real entitlement to look at things generally. We need therefore to improve links between national fiscal authorities and statistical agencies. Some countries publish their statistics country by country. We could extend this to other countries, other regions, the rich, the CACs, etc., and we could have a central public repository. The digitalisation of the economy and international fiscalisation for these countries are also at the core of our discussions. Pillar one of the major multinationals is great uncertainty, but we need flexibility if we're to reach an agreement. A global minimum tax, Pillar Two, must be applied to those countries which require help with its full implementation. In some cases, it's important to increase the tax bases with greater coherence in taxation systems and more efficient spending, and a review of fiscal incentives and subsidies, looking at the various realities here. Here, technical assistance and support will be vital. Basically, then, it's necessary for us to simplify fiscal norms and appropriately.

I thank the distinguished representative of Spain and now give the floor to the distinguished representative of Colombia. You have the floor.

Good day, ladies and gentlemen delegates. Colombia recognizes how important it is to look at domestic resources to obtain the SDGs. However, we have conditions, we need conditions which facilitate income at all levels, which means international taxation cooperation. Looking at the Elements paper, there is a highlight on the need to do away with the inequalities, both within and amongst countries, including taxes on great wealth. We also have to consider climate taxes, taking into account how important it is to have fiscal instruments which show up what is being done, but also generate sustainable alternative sources of funding for sustainable development. We also recommend that we consider an additional idea such as tax support plastic pollution as Ghana proposed, or taxing major wealth to fund climate action. we need solidarity when it comes to our taxes, particularly when it looks at activities that are damaging to the environment. However, we also have to ensure that any proposals for additional tariffs should be accompanied by an analysis of the global effects. For example, a tax on maritime transport could be unfavourable to developing countries, looking at the international area of commodities, we need to resolve the two pillars of the inclusive framework of the OECD and ensure that they're beneficial to developing countries. On the other hand, Colombia also completely supports the inclusion of environmental and climate criteria in the fiscal programming instruments so that the national circumstances of countries can be reflected. Here, it is important to make progress in implementing green and gender frameworks incorporating climate elements in medium and long term planning and in looking at biodiversity and measures for that and the climate. Colombia supports the process underway and considers special standards for international developing banks, which should be development banks, which should be consonant with the risk profile and their way of acting so that we know where the resources from these financial institutions go. Thank you.

I thank the distinguished representative of Colombia. Due to the high number of inscriptions received already, the list of speakers is now closed so that we can get through the list of speakers before lunchtime here. I have the pleasure of giving the floor to the distinguished representative from ILO to be followed by the representative of Yemen. You have the floor, ILO.

Excellencies, the state of social protection globally demands our urgent attention. Despite progress since 2015, 3.8 billion people remain without any form of social protection. To ensure basic social protection floors in low and middle income countries, we need an additional investment of $1.4 trillion representing 3.3% of their aggregate GDP. Domestic resource mobilization is a cornerstone of building resilient and sustainable universal social protection system. And achieving this demands decisive action on three fronts. First, we must strengthen our tax systems through progressive taxation on income, profits, wealth, moving away from over reliance on progressive consumption taxes. This approach not only generates needed revenue, but also supports enterprise and employment formalization. Second, We must combat illicit financial flows and tax avoidance. In many developing countries, lost tax revenue from profit shifting and tax havens exceeds the social protection financing gap. By addressing these leakages, we can unlock significant domestic resources. Third, we need greater policy coherence between finance and labor ministries. This includes reallocating public expenditures, such as fossil fuel subsidies, towards social protection while ensuring support for those with limited contributory capacity. The challenge is particularly acute in Africa, where social protection spending reaches only 3.7% of GDP, far below the global average of 12.9%. In this context, international solidarity must complement domestic resource mobilization. The International Labor Organization's message is unequivocal. Building robust universal social protection systems through domestic resource mobilization is not merely a fiscal necessity, it is a profound commitment to upholding human dignity, advancing social justice and securing a future of inclusive and sustainable development.

I thank the distinguished representative of the ILO also for his brevity, because we will now have to cut the speaking time to two and a half minutes in order to get through the speakers list. I give the floor to the distinguished representative of Yemen to be followed by the representative of the IMF. You have the floor, Yemen.

Thank you. Our country experience demonstrates the critical importance of strengthening domestic public resources while recognizing implementation challenges faced by low and medium income countries. On tax system modernization, Yemen has initiated reforms to streamline our direct and indirect tax systems for greater transparency. We have learned that successful digital transformation of revenue system requires sustained international technical support and dedicated IT infrastructure development. This experience could inform the proposed capacity building frameworks. Regarding international tax cooperation, Yemen participation in global initiatives demonstrate that automatic, Automatic exchange agreements, while valuable, must be accompanied by practical implementation mechanism. Many developing countries face similar challenges in building the necessary administrative capacity to fully participate in these systems. double taxation agreements our experience highlights that the importance of establishing fair distribution of taxing rights based on economic activity location with measures to address uh profit shifting and transfer pricing support uh supported by the dedicated technical assistance the proposed measures addressing International tax gaps align with Yemen's efforts to combat profit shifting and strengthen transfer pricing oversight however implementing these measures requires substantial technical technical capacity that many low developing countries are still building. We particularly here endorse the element papers proposal for enhanced international cooperation in domestic resource mobilization. The proposed 15% tax to GDP ratio target requires a clear implementation roadmap with differentiated timeline and support mechanism for countries facing institutional constraints. Therefore, we call the outcome document to include concrete commitment on technical assistance for tax administration, capacity building for international tax, implementation support for revenue transparency, dedicated assistance for countries with fragmented physical systems. These elements are essential for an outcome document that delivers meaningful progress on domestic resource mobilization. Thank you.

I thank the distinguished representative of Yemen and I now have the honor to give the floor to the representative of the IMF to be followed by the representative of Guatemala. You have the floor IMF.

Thank you.

I welcome the nicely done elements paper and I'm very.

Interested to listen to the views and reactions of member states and civil society to the options it identifies.

Now obviously given the time I cannot give you all the IMF views on domestic public resources.

Instead I would just point you to the 2024.

FSDR chapter on domestic public resources which reflects our fiscal experts' assessments and views plus a couple.

Of notes that IMF economists have prepared recently.

For the G20 on options for revenue mobilization and taxation.

And these are all in the public domain, but if you can't find them, please come to me.

This topic is in many ways the most important we will be discussing this week.

If there is a three or four trillion dollar per year.

Financing gap for achieving the SDGs, well over half of this will need to come from domestic resource mobilization, including.

Revenues as well as development of domestic financial markets.

And the IMF has a critical role in supporting countries efforts, especially with our capacity development work.

About half of the IMF's capacity building is financed through donors who wish to partner with the IMF.

These partnerships are crucial, especially given the importance of domestic revenue resource mobilization and more efficient and targeted spending for the achievement of the SDGs. So let me talk very briefly about a recent IMF initiative to strengthen our coordination in this regard.

The Global Public Finance Partnership, the GPFP, was established recently. It consolidates the donor financing of the IMF CD work on domestic revenue mobilization.

That's public tax policy and administration and public expenditure. That's expenditure policy and public financial management.

So it's now all under one roof. This single vehicle builds on the positive experience of three revenue focused thematic funds by integrating them and bringing in.

CD on expenditures that has up till now been financed through a network of bilateral arrangements.

I would emphasize the synergetic and coordinating role of this GPFP.

GPFP is unique coverage of all public finance, so ensuring that it is properly funded will be a critical.

Element of any.

Plan stemming from FFD4.

Thank you.

I thank the distinguished representative of the IMF and now give the floor to the distinguished representative of Guatemala to be followed by the representative of Argentina. Guatemala, you have the floor.

Thank.

You very much, sir. I'd like to start by saying how important domestic public resources are as a driver for sustainable development and meeting the SDGs. From our point of view, the real mobilization of domestic public resources aligned with transparent and equitable fiscalization is vital to promote the confidence of citizens and ensure that there is equal treatment for all. In Guatemala, we recognize that strengthening tax systems is essential to ensure funding essential public services such as health and education. Therefore, we firmly support a holistic approach looking at progressivity in tax systems and promoting the digitalization of tax departments. This will also improve collecting tactics, but also combat the black economy, which is a significant challenge in many of our countries. We also believe that it's essential to enhance international cooperation in mobilising domestic resources. We need support here of a decisive nature to arrive at the 15% threshold of GDP. This is a minimum to ensure tax stability and the endeavours here must be accompanied by ensuring that budgets are aligned with SDGs. and also when it comes to transparent acquisition systems and auditing and financial supervision here. When it comes to international fiscal cooperation, we would call for strengthening the capacities of countries to combat the tax evasion of the major corporations. It's essential to ensure that these companies pay taxes where they generate income on the principles of fiscal justice and doing away with the erosion of taxation bases. And we also need to move towards an inclusive global financial architecture reflecting the needs of developing countries. Guatemala once again states that we are willing to continue to strengthen our national capacity. We have a commitment there, but we also call on the international community to ensure that our endeavors lead to tangible benefits for our people. Thank you.

Thank the distinguished representative of Guatemala, and I now give the floor to Argentina, to be followed by the representative from the Democratic Republic of Congo, who will be speaking on behalf of the African group.

Thank you very much, and good day. I shall try to be concise, concrete, and interactive, given the time constraints. Looking at the elements document, In this section, it proposes initiatives that the Republic of Argentina is not in a position to fulfil, as these run counter to our fiscal policy. Just one point, C, which refers to increasing taxation by more than 15% of GDP. we look at those with high incomes and the exchange of information amongst countries regarding such extremely wealthy individuals. So we also cannot agree the two budgets looking at gender or taxes. Again, the identification or incorporation of innovative and global taxation, looking at fuel taxes, carbon taxes to fund SDGs and looking at maritime transport there. We also cannot agree with the climate considerations in tax programming, fiscal programming. Regarding the UN Framework Convention for International Fiscal Cooperation, we also have reservations and we believe that these are two different processes, they're separate. and they have different channels separated one from another when it comes to this fourth conference. Thank you very much.

Thank you very much to the distinguished representative of Argentina. I see that the Democratic Republic of Congo is not in the room, so I will give the floor now. Oh, he's in the room now. So You have the floor, to be followed by the distinguished representative of Cuba.

Thank you very much, Sorry. I have the honor to deliver these remarks on behalf of the African group. Without robust and innovative strategies to maximize domestic revenues, developing countries, particularly in Africa, risk falling short of achieving the sustainable development goals and sustaining economic growth. While the action outline in the element papers are pertinent, it is essential to place greater emphasis on practical implementation approaches and tackling the structural challenges faced by the developing economies, particularly those in Africa. The Africa Group would therefore like to underscore the following points for reflection and inclusion in the final outcome document. First, we need to reform tax systems to promote equity and efficiency. A critical starting point is comprehensive tax system reform. Many African countries face challenges with narrow tax basis, regressive tax structures, and limited enforcement capacity. While we welcome a focus on capacity building, this effort should be beyond the broad commitment outlined in the element paper. Second, we must reform the global tax system. Developing countries' ability to mobilize domestic resources is intrinsically linked to global tax governance. The existing global tax system disproportionately favors wealthier nations. This is why the African group… is calling for the establishment of a UN framework convention on international tax cooperation. Third, we must prioritize formalizing the informal sector. The international community can play a pivotal role in supporting the formalization of the informal sector in many African countries. The informal economy accounts for over 80% of employment yet contribute minimally to tax revenue, creating a significant gap in domestic resource mobilization. To bridge the gap, Africa Group will want to see strong commitment in the outcome document from global partners to assist by providing technical expertise and financial support.

Thank you very much to the distinguished representative of the Democratic Republic of the Congo on behalf of the Africa Group. I now give the floor to the distinguished representative of Cuba to be followed by the representative of the European

Union.

Thank you very much. I should also like to thank the facilitators for this section. My delegation acknowledges that national responsibility in the mobilisation of domestic resources is essential but not enough to achieve sustainable development. Our endeavours to mobilise domestic resources must mean a favourable environment, not just within countries but also externally. Looking at the current challenges in international funding and world trade, the mobilisation of domestic resources alone is not enough to eradicate poverty and achieve sustainable economic growth. We need the support of the international community to address the access of external financial funding and the international financial institutions. The role of the global environment must be emphasised. in the context when it comes to mobilising domestic resources. We think that this is absent. When it comes to enhancing fiscal resources, the proposal has a great level of detail, descriptive When it comes to national commitments to climate change, the principle of subsidiarity must be indicated as in L here, must be included, and the principle of proportionality must be indicated as in M here. There must be a rewording when it comes to corruption. It's not just a problem in developing countries. Every party to the convention must work to achieve its adoption. Thank you.

I thank the distinguished representative of Cuba. And I now give the floor to the distinguished representative of the European Union, to be followed by the distinguished representative of Uganda, who will deliver on behalf of the G77 and China.

Mr President, as the European Commission, we welcome the comprehensive approach promoted by the Elements Paper, which addresses both revenue and spending. First, on the revenue side, we share the priorities identified, in particular strengthening domestic revenue mobilisation, enhancing international tax cooperation and combating illicit financial flows. We will continue supporting developing countries' efforts to strengthen their tax policies and administrations through coordinated and demand driven capacity building. We also agree that tax systems must be fair and efficient, and we promote this, among others, through the Addis Tax Initiative post 2025 Tax Task Force. We need to collectively enhance fiscal transparency and the fight against corruption, money laundering and illicit financial flows, including by strengthening their prevention. Global challenges require multilateral solutions. We must improve the implementation of existing initiatives and ensure the coherence of work strands across the international fora. We support the global forum for transparency and exchange of information and the OECD G20 inclusive framework, whose growing membership seeks to reform the international tax system, including through an ambitious two pillar solution. We are also engaging constructively to facilitate an inclusive and efficient process at the UN. On the expenditure side, we agree that we need transparent, accountable, and efficient public spending. Expenditure should be geared towards provision of essential public services, such as education, health, social protection, or investment in basic infrastructure. The INFFs have their place in the FFD4 and can contribute to efficient resource allocation. The EU will continue supporting countries' efforts to build transparent and sustainable procurement systems, strategic public investment management and strong supreme audit institutions. Fiscal policies and PFM systems should move ahead with the times. Taking into account countries' capacity constraints, we welcome the call for implementing gender-responsive green and digital systems. In particular, measures like green budgeting and environmental taxation can help address environmental challenges, generate revenues and support sustainable investments. We therefore also welcome the ongoing reflections to identify possible global solidarity levies. Thank you very much.

I thank the distinguished representative of the European Union, and I now give the floor to the representative of Uganda to be followed by the United States of America.

Thank you, Chair. The G77 and China commends the co-facilitators for preparing the draft elements paper, which forms a basis for our interactive discussions. The group emphasizes its position on the domestic public resources section of the FFD4 outcome document as follows. Recognition that domestic resources are first and foremost generated by economic growth supported by an enabling environment at all levels. Call upon the international community to scale up support for related technological, institutional, and human capacity building to developing countries to optimize the efficiency of their tax systems, including to explore digitalization as a tool. Call for reducing illicit financial flows with a view to eventually eliminating them, including by combating tax evasion, tax avoidance, and corruption. through strengthened national regulation and supervision and increased international cooperation; creation of a more enabling environment at global, regional and national levels to increase the mobilization of domestic resources and enhance the capacities, institutions and systems of developing countries at all levels to achieve this goal, including through international support to increase investment in sustainable development; The group reinforced the commitment to strengthening the inclusiveness and effectiveness of tax cooperation at the United Nations and stressed the need for countries to continue to engage constructively in the process towards developing a United Nations framework convention on international tax cooperation, support developing countries to engage to catalyse increased private sector investment in sustainable development, including by promoting inclusive and innovative finance mechanisms and partnerships, and by creating a more enabling domestic and international regulatory and investment environment through the catalytic use of public financing. Increase domestic revenue through public-private partnership to scale up investment to achieve fast and inclusive economic growth and emphasize the need for a more concerted support to strengthen the financial sectors in developing countries, particularly in terms of the banking sector and development of domestic capital. Share the G77 and China invites member states

to consider the recommendations

of the high-level panel on international financial accountability, transparency, and integrity for achieving the 2030 agenda during the preparatory process for the fourth international conference on financing for development. I thank you, Chair.

I thank the distinguished representative of Uganda, and I now give the floor to the United States to be followed by CAS 03.

Thank you, Chair. Domestic public resources are the foundation of investment in the SDGs and critical to accelerating sustainable development that promotes inclusive growth, protects the environment, and enables social inclusion. The United States remains committed to providing robust technical assistance and capacity strengthening to help countries at national and subnational levels to enhance domestic resource mobilization, or DRM. This includes sound fiscal management, promoting good governance, combating corruption, ensuring transparency, and Upholding the rule of law. Efforts to strengthen DRM must also support gender equality and women's and girls' empowerment, promote inclusive development, and safeguard those most vulnerable in society. We support the inclusion of environmental consideration in fiscal reforms. The United States agrees that strengthening international tax cooperation, especially through enhanced capacity building related to domestic progressive tax systems, can have a positive impact on DRM and achieving the SDGs. The United States will continue to engage constructively in discussions on the UN Framework Convention on International Tax Cooperation. We remain concerned that the current approach fails to complement the significant progress in other forums and fails to prioritize consensus-based decision-making. We reiterate our concerns regarding broad proposals for tax transparency on enhanced reporting obligations and the creation of new repositories. Tax transparency efforts must carefully be considered and scoped and respect existing limitations and safeguards. Calls for the creation of new mechanisms on accountability and regulation, coordination on illicit financial flows, remediation of asset recovery and return may undermine progress being made through existing mechanisms such as the Financial Action Task Force. We appreciate the focus on countering corruption and money laundering and the particular attention on implementing existing international international treaties and obligations and standards. We have concerns with the proposals to create new mechanisms, including an ECOSOC, notably vis-a-vis the UNCAC Conference of States Parties.

Thank you.

I thank the distinguished representative of the United States, and I now give the floor to the Asian People's Movement on Debt and Development, to be followed by India.

Distinguished representatives, good morning. I am May Benaventura of the Asian People's Movement on Debt and Development, speaking on behalf of the Civil Society Financing for Development Mechanism, particularly on the UN Tax Convention. In the last two years, we've seen a historic breakthrough on international tax cooperation. And just last week, the terms of reference for a new UN Framework Convention on International Tax Cooperation and two early protocols were adopted. We applaud the adoption of the TOR for the new UN Tax Convention, and we commend the Africa Group for the immense leadership it has shown in championing the issue. The UN Tax Convention provides hope and opportunity to win the fight against illicit financial flows and international tax abuse, as well as replace harmful tax practices with fair, transparent, and inclusive international tax cooperation. In the past, global tax policies were negotiated behind closed doors where countries, particularly developing countries, were not able to participate on equal footing. The negotiation of the UN tax convention constitutes a watershed moment. For the first time, all countries are negotiating as equals. The TOR was adopted by a very broad majority of UN member states. We especially recognize the G77 and China's contribution to the adoption of the TOR, without which the number of votes required would not have been reached. We further acknowledge the role of the G77 and China in continuing to support the Africa Group. However, we note with grave concern that some countries have failed to support these efforts. Though all member states express support for the UN tax convention process, there is a small but very loud minority that first voted against it and then failed to support the TOR. We call on all countries to express their full support and unconditional endorsement of the TOR. We also expect all UN member states to engage in a constructive manner and negotiate in good faith. Thank you very much.

I thank the Asian People's Movement on Debt and Development, and I now give the floor to Egypt, to be followed by Switzerland.

Thank you, Chair.

I would like to thank the co-facilitators for their efforts on this section. We align with the remarks delivered by G77 and China and on behalf of the African group and would like to add the following discussions and proposals made in this section. We need to be very carefully balanced with the section on international cooperation through in the document on the strengthening fiscal systems section. We have concerns about the number of detailed proposals focusing on and dictating national policies and regulations in developing countries. There is no one-size-fits-all approach in this regard, and such measures will depend on the national priorities and realities. So we recommend avoiding overly prescriptive proposals in this regard. In the international tax cooperation section, we acknowledge the inclusion of the reference to the framework convention on international tax cooperation and to committing to strengthening the voice and representation of developing countries in the international tax architecture. However, we consider that the section contains too many details and proposals that are expected to be discussed and decided upon by the intergovernmental ad hoc committee expected to be established soon. for this purpose and therefore request avoiding duplicating efforts and preempting these discussions, especially that the FFD4 is held end of June and it's expected that the committee would have already made progress on some of these issues. We also emphasise that the FFD4 outcome document is not the appropriate forum to deliberate on and tackle the OECD two pillar solution in any way. We appreciate the inclusion of the proposal on having a multilateral mediation mechanism to aid in resolving challenges related to asset recovery and return, and also on establishing a global coordination mechanism in ECOSOC to address financial integrity on a systemic level. And we hope that discussions on these proposals will progress constructively going forward.

I thank you.

I thank the distinguished representative of Egypt. And I now give the floor to the representative of Switzerland to be followed by the representative of India.

Thank you very much, Madam President.

Excellencies, dear colleagues. First of all, we welcome that the Elements Paper recognizes the negative impact of corruption, both as a cross-cutting issue as well as with specific measures across the document. We support in particular the measures to enhance transparency and accountability in budget allocation, tax policy, revenue collection, expenditure and public procurement, as well as the need to reinforce financial oversight, including through safeguarding the independence of parliaments and supreme audit institutions. We believe that a future financing for development framework should also refer to the importance of integrity and merit-based recruiting in public service and recall the role of an independent media and an open civic space. The sections on climate financing and trade in critical minerals and commodities should address the risk of corruption in more detail. Secondly, the note refers to the need to enhance sustainable and transparent asset recovery and return practices, including through innovative approaches. Let me recall that It was the Addis Ababa Action Agenda which set an important foundation for the development of good practices on asset return. Over the last ten years, we have seen significant progress in this field, which will be cultivated further during next week's fourth expert meeting on asset return and sustainable development taking place in Addis Ababa. We believe that the new Financing for Development outcome document should reiterate the importance of transparent, accountable and efficient return practices, making sure that asset returns benefit the populations of countries of origin. To do this, robust

I thank the representative of Switzerland.

I now call to the distinguished representative of India to be followed by the representative of the Russian Federation.

Thank you, Chair. While significant progress has been made in domestic resource mobilization, we are of the view that national efforts must be complemented by effective international tax cooperation that addresses the unique development needs of the EMDs and LDCs. India advocates for an inclusive and effective international tax framework that ensures a fair allocation of taxing rights. In this context, we support the UN Framework Convention on International Tax Cooperation. We call on the developed countries, MDBs and IOs to provide capacity building and resources to support the EMDs, especially in harnessing digital technology for improved tax collection, expenditure efficiency and increased accountability. Progressive tax policies are key to advancing the objectives of fairness and equity. However, the design of such policy should be based on the principle of respect for tax sovereignty, enabling countries to tailor tax systems to their specific contexts and needs. In this context, and with regard to the elements paper, we would like to emphasize that it is premature to include any reference to global solidarity levies or specific innovative taxes. These levies also violate the principle of CBDRRC and equity enshrined in the Paris Agreement. Similarly, while we reiterate our commitment to tax transparency and fostering global dialogue on effective taxation, discussions on taxing high net worth individuals is at a very nascent stage. At this time, no commitment should be made to enact or strengthen taxes targeting high net worth individuals, particularly in the context of international cooperation. Combating illicit financial flows require robust regulatory frameworks, effective enforcement mechanisms, and enhanced international cooperation. To conclude, a collective commitment to strengthening domestic resource mobilization and establishing a fair, transparent global tax framework is crucial to boost financing for development. Thank you, Chair.

I thank the distinguished representative of India and give the floor to the distinguished representative of the Russian Federation, to be followed by the representative of France. You have the floor, Russia.

Thank you, Madam Chair. We would also like to thank the coordinators for preparing the elements paper. The Russian Federation acknowledges the important role of domestic resource mobilization for financing for development. We support the need for accountability and effectiveness in the use of resources in this process as well. An important role is played by national audit institutions. At the same time, we must take into account national specificities, their possibilities and their priorities, because not all solutions in this area are universal. Capacity building and improving national tax systems can have some limitations in that regard. International cooperation in the tax sphere should be considered, taking into account the most recent discussions on the creation of a UN framework convention on international tax cooperation. We are of the view that the priority should be creating the necessary conducive conditions at every level in order to ensure economic growth for countries, which in turn will facilitate the mobilization of domestic resources. Specific proposals for the creation of a global coordination mechanism in the fight against illicit financial flows are currently being considered in the Russian agencies and we will provide comments on that later. We would like to draw attention to the fact that ensuring development cannot and must not be limited to sustainable development alone. In that regard, The, um, linking of budget policies to, uh, sustainable development and the SDGs causes some difficulties. Among the proposed elements, we cannot support including the issue of subsidies, including for, um, uh, fossil fuels. They are discussed at other specialized forums. Uh, we also have doubts over the gender agenda and its unclear link with the issue of state budgets, as well as the role of artificial intelligence in this context. Thank you.

Mr. President, I thank the distinguished representative of the Russian Federation and now give the floor to the distinguished representative of France, to be followed by the representative of South Africa.

Thank you very much, Madam Chair. France believes that the mobilization of domestic resources is an essential pillar for the funding of developing states. The recommendations in the Addis Ababa program action remain particularly relevant today in our view. So this subject has to be at the core. We also agree with the elements paper regarding enhancing fiscal systems. Mobilising domestic resources, in our view, needs a regulatory, fiscal and institutional frameworks which are clear and attuned to local context. These frameworks must be flanked by a strong commitment from national authorities and resolute combating of corruption. Technical assistance also plays a vital role. France, supports many bilateral and multilateral initiatives where the IMF and the World Bank occupy centre stage. Here we would propose three specific recommendations. Firstly, enhance the links between budgetary support and technical assistance. The future plan could encourage strengthening the links between, on the one hand, conditionalities linked to the mobilisation of financial domestic resources in budgets, and on the other, technical assistance from multilateral institutions to improve both the quality and the volume of income. Secondly, we propose a national integrated strategy to mobilise domestic resources. We propose national strategies should be drawn up looking at both domestic and external debt with the development of domestic markets. This joint initiative, IMF and the World Bank, on the mobilization of domestic resources could provide a pilot framework for what has already been done in some countries, as Ethiopia, Kenya, and Sri Lanka, for example. Our third proposal would be that we create specific windows for vulnerable and conflict affected countries when it comes to multilateral technical assistance. Regarding international fiscal cooperation, it must be strengthened in order to free up the necessary funding and ensure that all actors can participate rightly in global efforts. France is fully involved in this, and this has been for a long time, and we are also working with the OECD and Pillars 1 and 2 there. The success of the initiatives here and all our work on fiscal cooperation must be based on two main.

Principles. And I give the floor to distinguished representative of South Africa to be followed by the representative of Brazil.

Thank you. co-facilitators and thanks once again for your hard work. I'll try to do the interactive thing, so forgive me for any lack of fluency here. We have a similar concern to India with regard to global solidarity levies. And our question really is, how can we implement these without violating the principle of common but differentiated responsibility and respective capabilities? Then two other points, one is on illicit financial flows. And, you know, here I think at FFD we need to look at both sides of the ledger, both the inflows into countries and the outflows. And, you know, there's a statistic that for every dollar of ODA that comes into a country, $5 leaves it as illicit financial flows. So even if we do all the things we've been talking about here, like getting taxes up to 15%, fully implementing CAF recommendations, 0.7% ODA, That's only gonna turn the, the trickle of development financing into, into a small stream that's going into a bucket with a very big hole that we're not, um, plugging, and, and, and the hole is illicit financial flows, and, and, and of course tax avoidance and… and evasion. And so IFFs are estimated to be in the trillions, much larger than the inflows. And so our question is could we not be more ambitious in the illicit financial flow section in this document and try and bring into our zero draft more of the FACTI panel recommendations to address this very pernicious problem? Then Uh, wanted to say that there's been, I've heard a common misconception here about domestic resource mobilization, an, an impression created that development financing relies largely on foreign aid, but I wanted to say, you know, in the case of Africa, for example, we've already passed the 15% target. And most of our development financing is, is, uh, domestically driven and our, uh, revenues and savings are 16 times what we get in ODA. So, uh, it's equally important to pay attention to international factors like, uh, tax and, uh, illicit financial flows as well in order to, uh, address holistically the financing for development problem. Thank you.

I thank the distinguished representative of South Africa and now give the floor to the distinguished representative of Brazil to be followed by the representative of Tanzania.

Thank you, Chair. We thank the co-facilitators for the elements paper, which is a good basis for our discussions here today. Developing countries have been facing a dual challenge, limited tax collection capacity due to less formalized economies and pressure to maintain low corporate rates to attract foreign investors. The high cost of debt services has also reduced developing countries' fiscal space, domestic resource mobilization capacity, and has hindered their ability to invest in the SDGs. We often speak only of the importance of creating enabling domestic environments, such as reforming legal frameworks, fighting corruption, guaranteeing transparency, and promoting good governance. All these elements are undisputably essential for domestic resource mobilization, but it's almost like we are saying that the developing countries are responsible for their own underdevelopment and economic woes, which is not often the case, as we have seen with the recent challenges created by COVID-19 and the increase in international tax rates. To allow for domestic resource mobilization, we almost need an enabling international environment that will allow for capital accumulation in developing countries. This includes market access for the exports through international trade, a fairer international financial system which does not burden developing countries with unpayable interest rates and loans, and a fair distribution of international tax revenues through taxation, not only at company headquarters, but also where the economic activities take place. I think India made a point on this earlier. Developing countries deserve a fairer share of tax revenues from economic activities conducted within their jurisdictions. There's a substantial untapped tax potential, which is crucial for addressing inequality and funding sustainable development goals. We endorse the general approach of the elements paper concerning the promotion of progressive tax systems for sustainable and inclusive economic growth. We welcome the commitment regarding the effective taxation high net worth individuals, which can be feasible with sufficient political will and improved access to information by governments and tax administration. Building on the Addis Agenda, we are happy to see the topic of international tax cooperation has gained prominence. Brazil will support the work towards inclusion, conclusion of the negotiations of the UN tax Convention on International Tax Cooperation. It's essential to keep raising ambitions to make sure that the ones who can contribute the most pay their fair share in taxes.

I thank the representative of Brazil and now give the floor to the distinguished representative of the United Republic of Tanzania to be followed by the representative of Indonesia. You have the floor, sir.

Thank you, Chair. The United Republic of Tanzania reaffirms its commitment to achieving the sustainable development goals by strengthening domestic resource mobilization as a cornerstone of self-reliance and sustainable development. Guided by the principle of equity, fairness, and sustainability, Tanzania under the able leadership of Her Excellency Dr. Samia Suluhu Hassan, President of the United Republic of Tanzania, has undertaken reforms to broaden the tax base and align with evolving economic realities, including digital platforms. Measures to enhance transparency, tax administration, and progressive policies aim to ensure equity while protecting vulnerable population are in place. Capacity building remains a priority, especially in formalizing the informal economy, in addressing tax evasion in cross-border and digital transactions. Tanzania called for international support to navigate complex tax reform without compromising the fiscal space critical for achieving the SDGs. We emphasize inclusive global tax cooperation, particularly from an Africa perspective. Strengthening international framework to address base erosion and profit shifting is essential to ensure multinational enterprises pay their fair share. The United Nations must lead in creating a fair and transparent global tax architecture that empowers developing countries. In this regard, focusing on promoting international tax cooperation to address these systemic issues at the global level, including through the negotiation of a United Nations Framework Convention on International Tax Cooperation is of paramount importance. In conclusion, Mr. Chair, as we prepare for FFD4, let's emphasize on the importance of multilateral partnership to combat illicit financial flows and promote technology transfer, including sharing digital tools and IT systems that support tax administration to promote domestic resource mobilization for effective implementation of SDGs, especially in developing countries. Thank you.

I thank the distinguished representative of the United Republic of Tanzania. And I now give the floor to the distinguished representative of Indonesia, to be followed by the Philippines.

Thank you, Chair Excellencies. The financing gap remains a huge challenge, particularly in developing countries and LDCs. We must strategically mobilize domestic financing to not just fund, but also create long lasting spillover effects through our actions and spending. One, we must not lose sight of strengthening the financial governance, such as an inclusive tax system, accessible remittance, leveraging digital technology to improve tax collection, public efficiency and accountability, as well as optimizing asset utilization. Indonesia supports the recommendation outlined in the elements paper to enhance tax revenues as a primary source of development funding. Additionally, Indonesia is committed to efforts aimed at increasing the tax to GDP ratio to strengthen fiscal capacity and currently improving tax collection. by enhancing tax governance, such as IT governance, to combat tax evasion. We also emphasize the importance of advancing an inclusive, fair, and effective international tax cooperation framework to address the challenges posed by the digitalization of the economy. Moreover, we must combat illicit financial flows by strengthening international efforts to tackle tax evasion, tax avoidance, and corruption while ensuring domestic financial transparency. To be specific, there is a need for a comprehensive solution ensuring that multinational enterprises pay their fair share where they generate value and assisting in safeguarding tax revenues that are crucial for sustainable economic growth. We also recognize the need to optimize the role of not only national authorities, but also subnational authorities in enhancing domestic resource mobilization. Finally, we must leverage all existing platforms, scale up and replicate the success teams and stories and amplify the accelerate the efforts by highlighting the role of international cooperation and partnership. I thank you.

I thank the distinguished representative of Indonesia and I now give the floor to the distinguished representative of the Philippines to be followed by the representative of Poland.

Thank you, Chair.

The Philippines has made great strides in modernizing its tax policies to ensure progressivity and inclusivity. Our tax to GDP ratio has steadily improved, raising additional funds to help support the government accelerated spending on its big ticket infrastructure projects and social service programs. Recent law has also been passed to make the Philippines tax incentives regime more globally competitive, investment friendly, and accountable. Beyond this, we have increased and leveraged domestic revenues to encourage more private sector participation. We have also allowed 100% foreign ownership of public services such as telecommunications, airline, shipping, and railways. Furthermore, we have maximized budget support loans from multilateral development banks to create an enabling environment to deepen our domestic capital markets, which enabled us to issue sustainability and green bonds. However, like many countries, we face domestic resource mobilization challenges such as gaps in tax enforcement and administration, a high number of informal economies and illicit financial flows. The Philippines recognizes the role of digitalization in mitigating these challenges. Investment in IT infrastructure, artificial intelligence and capacity building can strengthen our tax administration, curb financial crime and enhance compliance. We propose intensified collaboration with international partners to share best practices and build capacity in implementing progressive gender-responsive and climate-aligned tax systems that promote sustainability. To address inefficiencies and improve compliance, we propose enhancing international tax cooperation, digital transformation, and stronger alignment of public expenditures with the SDGs. We ask for greater support and investment in expanding these efforts. to promote financial inclusion, strengthen human development and social protection to broaden value chains and formalize the participation of informal sector in the economy. Finally, we emphasize the need for sustained capacity building programs tailored to the specific needs of developing countries, including middle income countries. We hope that the FFD4 will be a catalyst for enhanced and targeted cooperation in this regard. Thank you.

I thank the distinguished representative of the Philippines and I now give the floor to the distinguished representative of Poland to be followed by the representative of Belgium.

Thank you, Madam Chair. Distinguished delegates, Poland fully shares the conviction that countries are responsible for their own development and the international community is responsible for providing an enabling environment. We believe that mobilising and leveraging domestic resources remains a crucial element of pro development efforts. Our own experience of struggle with external debt It taught us how important it is for a country to build its own know how and capacity to increase budgetary revenues and strengthen tax systems. In this spirit, we support efforts to build strong and effective public institutions by making them more transparent, stable, resistant to crisis and corruption, and capable of absorbing aid effectively. We believe the Elements Paper correctly identifies the areas that can contribute to better domestic resource mobilisation, for example, strengthening fiscal systems and aligning them with SDGs. Specific initiatives within this area are critical to enhance the economic growth and, above all, to improve the living conditions of the people. However, we also noted other proposals in the LM paper which run the risk of duplicating the existing efforts. Colleagues, ladies and gentlemen, we know well that fiscal policy tools should take into account the specifics of individual countries and should be adequately flexible. We expect that the FFD IV outcome document will cover adequately such critical issues as improving public finance management, combating corruption, tackling illicit financial flows, improving the tax systems, in particular by implementation of modern tax technologies and counteracting tax crimes. Thank you.

I thank the distinguished representative of Poland and I now give the floor to the distinguished representative of Belgium to be followed by the representative of Madagascar.

Madam Chair, ladies and gentlemen, national public Domestic public resources have great potential when it comes to financing and they're the best guarantee for ensuring the resilience and continuance of national policies. Fiscal policies and legal instruments are the right instruments to use here to achieve gender equality, social protection, combating climate change. When it comes to income, we support the creation and enhancing of a fair progressive, equitable, transparent and effective fiscal systems. It is moreover vital to ensure that there are management systems for public funding that is more transparent and efficient in order to meet citizens' needs when it comes to essential public services. We here then support the proposals aimed at helping those countries of low or middle income increase their tax GDP ratio, and this in an equitable fashion. We also support the proposals on the implementing of transparent market shifting, the transparency of fiscal and subsidy management. Transparency is vital for budgetary effectiveness. We also want to see digitalisation of tax administrations, climate considerations taken into account in tax planning, and fiscalisation that takes into account gender equality and the progressive elimination of ineffective and harmful subsidies. In complement to national actions, international support is necessary as a catalyst to bridge the financing debt for SDGs, and here funding must be a priority. Sharing knowledge, capacity building, technical assistance can help countries to profit from lessons learned and best practices, looking at their specific needs and national situations. Here, national platforms such as ENFF have a role to play. We also support strengthening regulatory frameworks and mechanisms to combat tax evasion, corruption, funding of terrorism and money laundering. Moreover, we have to galvanize our efforts to ensure complete observance of fiscal obligations included there by multinational companies. Thank you.

I thank the distinguished representative of Belgium. I now give the floor to the representative of Madagascar to be followed by the representative of Saudi Arabia.

The mobilization of domestic resources is essential to reduce funding dependence on external resources and ensure sustained support for SDGs, looking at the priorities and needs of country. So we have therefore started reforming our fiscal systems with digitalization and looking better at our fiscal resources. Endeavors have also been undertaken to ensure transparency when it comes to financial flows. Here, Madagascar is laying emphasis on enhancing international cooperation in to support developing countries to improve their fiscal administration and manage their public financing by means of exchange of knowledge and good practices. We also count on international cooperation when it comes to fiscal matters. Madagascar follows the work of the intergovernmental committee established to this end. The existing fiscal international rules do not necessarily correspond to the needs of countries, particularly particularly middle-income countries, when it comes to protecting their tax bases. Combating IFS is vital to preserve national resources. And here we need robust financial transparency with data sharing amongst fiscal administrations. International cooperation is essential to track shifting, capital shifted to low-level tax areas. And we also in this way can combat the erosion of profits. Thank you.

I thank the distinguished representative of Saudi Arabia, of Madagascar. And I now give the floor to the distinguished representative of Saudi Arabia, to be followed by Pakistan.

Chair, for giving me the floor, we'd like to thank you for your efforts. We'd like to share some general views on the introduction. We believe that a number of elements in the document as a whole go beyond national sovereignty. Thus, we request that the overall efforts be framed taking into account national circumstances, needs, and priorities in an inclusive and balanced manner. It's essential to ensure proper alignment and cooperation with respective institutions and avoid going beyond the original mandate. We oppose calls to replace existing financing mechanisms under different forums with the outcomes of the FFD. We must respect those forums and their mandates. Finance obligations and commitments under various forums, including those under the UNFCCC shall be maintained. This is not the appropriate forum or platform to renegotiate these issues or expand its scope. On section one of the elements paper on domestic public resources, on point C, the World Bank's recommendation on low tax GDP levels is to aim for levels around 15% and not above. So we do not agree with including such an absolute recommendation, particularly that it might put some countries under pressure. On point J, we cannot single out specific SDGs and we need to be inclusive in our approach. And we request further clarity on the linkages presented in the text. We ask for the full deletion on point K in this document and oppose its inclusion in further iterations for the following reasons. These issues are being discussed under other forums, including the IMO, AIKO, and the UNFCCC. We're against singling out single commodities while ignoring many others. Any recommendation of a top-down approach in this document defies its core goal, ensuring financing for development. On point L, we cannot duplicate nor go beyond existing efforts under the UNFCCC, so we request deleting the references to carbon pricing mechanisms. On point M, we need to use agreed text when it comes to subsidies, and we need to have an equal treatment of subsidies and tax incentives across all sectors, including agriculture and renewable technologies. And we request the deletion of references to agriculture and fossil fuel subsidies in this text. Overall, we need to respect ongoing negotiating process and we extend our support towards an inclusive and successful outcome. Thank you.

I thank the distinguished representative of Saudi Arabia and I now give the floor to the distinguished representative of Pakistan to be followed by the representative of Australia.

Thank you, Chair. Thank you for all the hard work on this section to the co-facilitators. We find there to be an imbalance within this chapter. There is an overwhelming focus on the strengthening fiscal systems. We believe that there is no one-size-fits-all approach to domestic fiscal systems, and this section should only provide general guidelines. Therefore, we request the deletion of the specific reference to 15% of tax to GDP ratio. We are also concerned by the singling out of two SDGs, climate and gender, throughout this section. We are concerned that the Elements Paper contains an overemphasis on climate issues without any references to the principle of equity and common but differentiated responsibilities, the specific needs and circumstances of developing countries, and provides no context of no context of efforts to achieve sustainable development and eradicate poverty. We believe that some sections deal with topics outside of the mandate of FFD4, as they are dealt with by the UNFCCC. We support the proposal regarding the creation of a central public repository for country-by-country reports. We believe that the zero draft of the document should include a direct commitment to create such a repository and provide a home for such a repository. We particularly support the reference to the coordination mechanism on financial integrity, which we believe can be one of the main deliverables of this action area. The zero draft of the document must provide a mandate for ECOSOC to create such a mechanism with general guidelines on its purpose and functioning. Furthermore, Under the illicit financial flow section, we request the deletion of the reference to FATF standards and recommendations, which is unacceptable for our delegation. It may be noted that this reference is not contained in any recent FFD outcome documents, nor in any second committee resolutions. We'll provide our detailed proposals in our written submission. Thank you, Chair.

I thank the distinguished representative of Pakistan and I give the floor to the distinguished representative of Australia to be followed by the representative of Germany and a couple more as we have been given 10 more minutes. But Australia, you have the floor. Thank you, Chair.

For the matter of time, I'll focus Australia's comments on three quick points. So domestic resource mobilization remains key to unlocking financing to achieve the sustainable development goals.

We support continuing this progress through country-led platforms, which generated wide support in the inputs to the elements paper.

Secondly, we must offer a menu of support to countries willing to facilitate ambitious domestic reforms to build enabling environments.

And improve fiscal sustainability.

Meaningful and long-term partnerships with IFIs and donors.

Are needed, facilitating capacity development, including through the proposed joint IMF World Bank domestic resource initiative. We support our renewed commitment to the Addis Tax Initiative through FFD4. The other side of domestic resources is strengthening and developing national social protection systems.

We must consider development holistically and acknowledge that as national incomes rise, poverty may rise alongside. We must bolster gender-responsive budgeting efforts and support adaptation to climate change and other emerging risks. Uplifting the most vulnerable is a cornerstone to achieving the sustainable development goals.

Australia encourages sharing lessons and expertise through capacity building and technical assistance, including South-South cooperation. Thank you, and I look forward to discussing these issues with everyone here this week.

I thank the distinguished representative of Australia also for her brevity at this point and now give the floor to the distinguished representative of Germany to be followed by the representative of Ghana.

Thank you very much. We are pleased that strengthening fiscal systems and aligning them with the SDGs has been identified as a key concern in the Elements Paper. We welcome that the proposals include main issues relevant to tackle both the income and the expenditure side of public finances. In particular, we want to emphasize our support for the following topics. When it comes to domestic resource mobilization, it is not just a question of more, but also how. Tax revenues must be raised and spent in socially just and progressive manners so that inequalities are not increased but reduced, also with view to gender equality. This includes an internationally coordinated effective taxation of high net worth individuals with the aim to reduce inequality and generate additional revenue for investments in socioeconomic development. Furthermore, we support the socially just inclusion of environmental and climate considerations in public financial management. We support an international coordination for effective and consistent environmental policies across borders. With regard to international tax cooperation, we support the further development of the international tax architecture to ensure inclusivity and effectiveness, and we will further engage constructively in developing the UN tax convention. To better equip developing countries in their fight against tax evasion, tax base erosion and profit shifting, we will continue to support partner countries in implementing international agreements such as the two pillar solution of the BPS G20 inclusive framework. Enhancing international cooperation and capacity development is essential in achieving our common goals. In this context, strengthening the capacities of the relevant authorities is crucial. We believe that some of the proposals of the Elements Paper will need detailed discussion. We consider the ideas included in the Elements Paper reflect a balanced approach with several promising actions that can contribute to sustainable development. We look forward to a constructive exchange. Thank you very much.

I thank the representative of Germany and give the floor to the distinguished representative of Ghana. To be followed by a representative of Oxfam International.

Thank you. I align my statements with those of the Africa Group and the G77. And I want to make two quick points. First, on international tax cooperation, we emphasize that Africa's persistent loss of revenue due to base erosion and profit shifting is a systematic issue that undermines DRM. The proposals rightly emphasize international tax cooperation, but fall short in addressing the urgent need for structural reforms in global tax governance. The current system disproportionately benefits wealthier nations, leaving Africa vulnerable to tax-based erosion and profit shifting. A reformed global tax architecture grounded in fairness and inclusivity is essential. That's why the Africa Group is championing the establishment of the UN Framework Convention on International Tax Cooperation to create a fair, transparent and equitable platform for addressing tax challenges. This framework would ensure that all countries have an equal voice in shaping international tax norms and benefit equitably from global taxation agreements. We call for firm commitments from global North countries to engage constructively in the UN process for the development of a framework convention. We are concerned about the detailed proposals in the elements paper relating to language, uh, supporting OECD pillar two, uh, decisions, and here the simple question I ask is that how would developing countries, uh, uh, uh, be able to implement decisions they were not part of formulating in the first place. And this is the inherent problem as related to the OECD process, that a greater majority of developing countries don't have a seat at the table. And yet there's copious language in this document encouraging developing countries to implement rules and regulations they were not part of formulating in the 1st place. And so my delegation is concerned about this and we would welcome its deletion. The second point I'd want to clearly emphasize is on combating illicit financial flows. And we need to prioritize enablers and prioritize asset recovery.

I thank the distinguished representative of Ghana and give the floor to the distinguished representative of Oxfam International.

Thank you, Chair.

My name is Arnand Sain from Oxfam International, speaking on behalf of the civil society F5 mechanism. We are closer to having the first trillionaire than eradicating poverty or achieving gender justice, and this future trillionaire is barely paying taxes on his wealth and income. Progressive taxation is crucial to increase revenues in a fair way so everyone pays its fair share of taxes to increase public investment in social protection, care, et cetera. But well-designed taxes and at rates high enough, it's also a powerful tool to reduce inequality. We know though that inequality is deepening between and within countries. And we also know that the richest 1% owns more wealth than 95% of the global population. Over the past two decades, the wealth owned by the rich 1% in G20 countries has increased by nearly 150% in real terms, but despite these numbers, progressivity of tax systems is broken at the very top, with richest individuals paying on average around 0.5% in real taxes. One extremely encouraging element is the newly adopted terms of reference for a UN framework convention on international tax cooperation and the commitment to ensure effective taxation of high net worth individuals as part of the new convention. It's also encouraging because we now have a big political momentum here at the UN to advance in a proposal that well-designed could raise almost $2 trillion per year, enough to lift up two billion people out of poverty. To be fully effective, this needs a combination of domestic reforms as well as global initiative, commitments, coordination and cooperation. And here the UN tax convention is crucial and we're encouraged to see the progress. We are, however, also very concerned about the fact that especially some developed countries are still hesitating to endorse the terms of reference and call on them to do so immediately. FFD4 and its negotiation have to be supportive of the UN tax convention negotiations and increase the momentum for change, including on effective taxation of the world's richest.

It is here in the.

UN where all countries negotiate on an equal footing and this is key to rebuild trust in multilateralism. If we want to abandon taxing high net worth individuals, FF4 needs to reinforce, complement and avoid duplicating the UN tax convention negotiations so not to lose the momentum and distract us from the main objective, a fairer international tax system based on justice and fairness to fight inequality and financing sustainable development. I thank you.

I thank the distinguished representative of Oxfam International who was the last speaker for this session. We have three more speakers left on the list for this discussion. They are the Financial Transparency Coalition, FAO and IFAD. And we will start the next meeting at 3 p.m. in this conference room with listening to those three speakers and then move on to the interactive discussions number two and three on the and International Private Business and Finance and International Development Corporation. The meeting is adjourned and thank you for your participation.