USG Rabab Fatima
Five years from the 2030 deadline for the Sustainable Development Goals (SDGs), we face a development emergency. The promise to eradicate poverty, combat climate change, and build a sustainable future for all is slipping away. The SDG financing gap has ballooned to over $4 trillion annually—a crisis compounded by declining aid, rising trade barriers, and a fragile global economy.
At the heart of this crisis is a systemic failure: the world’s most vulnerable nations—Least Developed Countries (LDCs), Landlocked Developing Countries (LLDCs), and Small Island Developing States (SIDS)—are being left behind. The Fourth International Conference on Financing for Development (FFD4) in Seville is a historic chance to correct course.
We must seize it.
LDCs: Progress Stalled, Financing Denied
Three years into the Doha Programme of Action, LDCs are lagging precariously. Growth averages just 4.1%, far below the 7% target. FDI remains stagnant at a meagre 2.5% of global flows, while ODA to LDCs fell by 3% in 2024. Worse, 29 LDCs now spend more on debt than on health, and eight spend more on debt than on education.
These numbers demand action: scaled-up concessional finance, deep debt relief, and innovative tools like blended finance to unlock private investment. Without urgent measures, the 2030 Agenda will fail its most marginalised beneficiaries.
LLDCs: Trapped by Geography, Strangled by Finances
Six months after adopting the ambitious Awaza Programme of Action, LLDCs remain hamstrung by structural barriers. Despite hosting 7% of the world’s people, they account for just 1.2% of global trade, with export costs 74% higher than coastal nations. FDI has plummeted from $36 billion in 2011 to $23 billion in 2024, while ODA continues its downward spiral. Official Development Assistance (ODA) has also declined significantly from $38.1 billion in 2020 to $32 billion in 2023, with projections indicating continued downward trends.
The Awaza Programme outlines solutions—trade facilitation, infrastructure, and resilience—but these will remain empty promises without financing. FFD4 must align with its priorities, ensuring LLDCs get the investment they need to transform their economies.
I seize the opportunity to warmly invite all of you to continue these critical discussions at the Third United Nations Conference on Landlocked Developing Countries (LLDC3), to be held in Awaza, Turkmenistan, from 5 to 8 August 2025 under the theme “Driving Progress through Partnerships.”
SIDS: Debt, Disasters, and a Broken System
For SIDS, the crisis is existential. Over 40% are in or near debt distress; 70% exceed sustainable debt thresholds. Between 2016 and 2020, they paid 18 times more in debt servicing than they received in climate finance. This is unconscionable. Countries on the frontlines of the climate crisis should not be left on the margins of global finance. Nations drowning in rising sea levels—which they did not contribute to—should not be drowning in debt.
We can continue patching over cracks in a broken system. Or we can build a more equitable foundation for sustainable development. For that, addressing debt sustainability is not only an economic necessity but also a development imperative. No country should be forced to choose between servicing debt and protecting its future.
The Way Forward: Solidarity in Action
FFD4 must deliver:
Debt relief and restructuring for LDCs, LLDCs, and SIDS to free up resources for development.
Scaling up concessional finance and honouring ODA commitments.
Mobilising private capital through de-risking instruments and blended finance.
Climate finance justice, ensuring SIDS and LDCs receive grants and concessional finance, not loans, to build resilience.
The moral case is clear, but so is the strategic one: a world where billions are left in poverty and instability should be a world of shared risks and responsibilities. FFD4 must be the moment we choose a different path—one of equity, urgency, and action. The time for excuses is over. The agreement on the Compromiso de Sevilla is the start—the real test will be its implementation.
As we move forward on those important responsibilities and necessary actions, my Office, UN-OHRLLS, is with you every step of the way.
Author: Rabab Fatima, UN Under-Secretary-General and High Representative for the Least Developed Countries, Landlocked Developing Countries, and Small Island Developing States