FFD4 Conclusions: Toward a Global Financial Architecture to Achieve the SDGs

Yesterday, the 4th International Conference on Financing for Development (FFD4) concluded in Seville. The event gathered heads of state and government, ministers, diplomats from over seventy countries, staff from United Nations (UN) agencies, national development cooperation agencies, local and international NGOs, and broad representation from global civil society. The conference featured an official program, special events such as the launch of the Seville Action Platform, and over 300 side events inside and outside the venue.

This fourth conference continues the process that began in Monterrey in 2002, which aimed to make development financing a global priority. It was followed by conferences in Doha in 2008 and Addis Ababa in 2015, where the Addis Ababa Action Agenda was adopted, establishing concrete commitments to development financing. The goal was to create a space for dialogue to help address the existing shortfall in financing sustainable development, particularly the Sustainable Development Goals (SDGs) and the 2030 Agenda, which is estimated to require $4 trillion.

According to the UN, fossil fuel subsidies account for 7.1% of global GDP—more than annual public spending on education (4.3%) and nearly two-thirds of healthcare spending (10.9%). Additionally, the global economic cost of wars in 2023 exceeded $19 trillion, while the richest 1% of the population accumulated $42 trillion in new wealth over the past decade. The additional financing needed to close the $4 trillion gap places a disproportionate burden on developing countries.

The current global financial architecture fails to meet the needs of developing countries, which face interest rates at least twice as high as those in developed countries. They are also more vulnerable to global financial factors beyond the reach of their national policies and, in many cases, lack access to bilateral swap lines extended by central banks of major economies. At the same time, the heavy debt burden, coupled with vulnerability to unexpected shocks, has severely limited their ability to invest in sustainable development. It is estimated that around 3.3 billion people live in developing countries where interest payments on debt exceed spending on education or healthcare—and those payments are growing faster than such expenditures.

Given that current financing sources are limited to official development assistance (ODA) and public and private multilateral climate funds, FFD4 aimed to boost investment in achieving the SDGs and promote reform of the global development finance system to achieve some or all of the following goals:

• Establish a more inclusive development cooperation system, both nationally—with country-led strategies and national platforms—and globally, through a strengthened UN role in facilitating dialogue among all actors.
• Develop a new debt structure focused on development.
• Reform credit rating agencies to provide fairer assessments for developing economies.
• Improve the voice and representation of developing countries in international financial institutions.

The 4th International Conference on Financing for Development underscores the urgent need to reform the global financial system to better address the needs of developing countries and advance progress on the Sustainable Development Goals. The Seville Commitment marks a milestone by establishing a joint roadmap to overcome structural inequalities in financing and promote more inclusive and fair international cooperation. However, the real challenge lies in the effective implementation of these agreements to close financial gaps and ensure sustainable and equitable development.