Urgent Reform Needed for Global Development Cooperation
As international development cooperation faces significant challenges, experts at the Economic and Social Council’s 2025 Development Cooperation Forum in New York have called for a transformative approach. With dwindling global solidarity and reduced development assistance, speakers emphasized the necessity for reform to adapt to current realities. They highlighted the importance of addressing the needs of developing countries and ensuring effective collaboration among international financial institutions.
Calls for a Paradigm Shift in Development Cooperation
During the opening session, Robert Rae, President of the Economic and Social Council, underscored the pressing need for a paradigm shift in international development cooperation. He noted that many developing nations are constrained by limited fiscal space, making it difficult for them to change their development trajectories. Rae stressed that international financial institutions must also undergo reforms to better support these countries. He pointed out that a new outcome document will be agreed upon at the upcoming fourth International Conference on Financing for Development in Seville, Spain, from June 30 to July 3.
Rae emphasized the importance of eliminating duplication and inefficiency in development efforts, advocating for a holistic UN approach that integrates humanitarian, peace, and development initiatives. He argued that collaboration with multilateral financial institutions and the private sector is essential, stating that the notion of a UN-alone project is misguided. The international community must adapt development cooperation to meet today’s challenges, focusing on long-term needs and delivering high-quality, impactful assistance.
Addressing Climate Finance and Social Inequities
Li Junhua, Under-Secretary-General for Economic and Social Affairs, warned that nearly 600 million people could still be living in extreme poverty by 2030. He highlighted the critical role of climate finance, which remains insufficient for many countries facing unsustainable debt and fragmented development systems. Junhua pointed out that women and girls are disproportionately affected by these challenges, jeopardizing decades of progress in gender equality. He called for predictable and sustainable support for the most vulnerable populations and urged participants to seek common ground for more effective development cooperation.
Navid Hanif, Assistant Secretary-General for Economic Development, outlined four key imperatives for transforming development cooperation. First, he stressed the need to restore the integrity and effectiveness of official development assistance (ODA). Second, he called for scaling up and simplifying access to climate finance, particularly for vulnerable countries. Third, Hanif emphasized the importance of aligning development cooperation modalities with actual development impact, advocating for a new approach to blended finance. Finally, he highlighted the necessity of modernizing the international development cooperation architecture to enhance national ownership and effectiveness.
Refocusing Official Development Assistance
The Forum also featured a panel discussion on making development cooperation relevant for today’s world. Carsten Staur, Chair of the Development Assistance Committee of the OECD, warned of a potential decline in ODA volumes this year. He stressed the need to refocus ODA to prioritize humanitarian assistance and support for low-income and conflict-affected countries. Staur noted that ODA should also catalyze other resources, emphasizing the untapped potential of domestic resource mobilization.
Noela Pantoja Crespo, Executive Director of the Peruvian Agency for International Cooperation, advocated for a multidimensional approach to ODA allocation that reflects the vulnerabilities and inequalities of developing countries. She suggested incorporating social mobility as a criterion for development cooperation resources, which would promote equitable opportunities across generations. Pantoja Crespo called for international cooperation to align with national development priorities, emphasizing the importance of leadership from developing countries.
Håvard Mokleiv Nygård, Director of Knowledge and Innovation at the Norwegian Agency for Development Cooperation, highlighted the need for a fundamental reconsideration of the purpose and effectiveness of development assistance. He pointed out that current estimates indicate a potential 25% decrease in total ODA flows by 2027, necessitating a shift in focus towards prevention and resilience. Nygård stressed that addressing systemic issues such as climate disasters, conflicts, and financial instability requires proactive measures rather than reactive solutions.
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