Md. Touhidul Alam Khan :
Financing remains a formidable challenge in achieving the Sustainable Development Goals (SDGs). The urgency to mobilize substantial financial resources has never been greater, especially as it has approached the Fourth International Conference on Financing for Development, set to take place in Spain in 2025. This conference addresses financing issues hindering global progress toward the SDGs.
Currently, the SDGs – designed to foster a better world by 2030-are far from being met. Without immediate and decisive action, countries risk failing to fulfill their commitments under the 2030 Agenda for Sustainable Development. One of the critical areas needing attention is the reduction of poverty, which remains a pressing concern.
Experts predict that by 2030, nearly 600 million people will continue to live in extreme poverty, with women disproportionately affected. Additionally, there is notable stagnation in climate action efforts. Reducing greenhouse gas emissions is vital for curbing climate change, which poses threats to human health, economic stability, and overall sustainability.
Achieving the SDGs requires adequate financing, enabling countries to invest in essential infrastructure and social services. The United Nations estimates an additional $2.5 trillion per year is necessary until 2030 to meet these ambitious goals. Unfortunately, misaligned incentives mean that investments still flow into damaging practices rather than sustainable initiatives.
Since the Monterrey Consensus on Financing for Development in 2002, some progress has been made, but funding has not kept pace with increasing demands and global challenges. Systemic risks like climate change and natural disasters have intensified, straining financial systems and frameworks.
The global economic landscape is shifting. Between 2021 and 2025, GDP growth in developing nations has dropped to just over 4 percent annually – down from around 6 percent before the 2009 financial crisis. Various forms of inequality have deepened, often perpetuated by existing financing policies. Furthermore, rapid digitalization is reshaping financial flows, while risks of economic fragmentation are on the rise.
These conditions are resulting in tight fiscal situations and increasing debt for many countries. For instance, the median debt service burden for least developed countries (LDCs) rose from 3.1 percent of revenue in 2010 to 12 percent in 2023 – the highest level in over two decades. In many regions, governments are spending more on interest payments than on essential services like education and healthcare. As a result, private sector development, which is vital for sustainable growth, has significantly stalled due to decreased investments and trade.
To confront these challenges, the upcoming Fourth International Conference on Financing for Development will bring together world leaders to achieve several critical objectives:
· Review progress made on the Monterrey Consensus, the Doha Declaration, and the Addis Ababa Action Agenda.
· Identify challenges that hinder progress on the SDGs.
· Develop actionable initiatives to overcome these hurdles.
· Address emerging issues that require attention.
· Accelerate the implementation of the 2030 Agenda and the SDGs.
· Advocate for reform in global financial systems.
The 2024 Financing for Sustainable Development Report aims to facilitate a productive dialogue leading up to this conference. The report presents vital questions for Member States to consider:
· How can we urgently close significant financing gaps to improve spending effectiveness?
· What reforms are needed to quickly increase public and private investments in the SDGs?
· How can governments better mobilize domestic resources to align spending with the SDGs?
· What changes in international financial architecture could improve resilience and access to financing for developing nations?
Rebuilding trust in global partnerships is also essential. It is vital to ensure that rhetoric aligns with real actions, particularly regarding commitments to concessional financing and global governance reform.
As we summarize our progress at the halfway point since the unanimous adoption of the SDGs in 2015, the need for sustained commitment in Bangladesh is clear. According to the 2023 SDG Progress Report by the UN Economic and Social Commission for Asia and the Pacific (UN ESCAP), the region as a whole has achieved only 14 percent progress toward the SDGs and, at the current rate, it would take another 42 years to fully realize these goals.
In Bangladesh, there are glimmers of hope. The UN ESCAP SDG Gateway indicates that the country has achieved notable performance indicators in 31 percent of the total 248 indicators. Notably, the country ranks above the regional average in its achievements related to Affordable and Clean Energy (SDG 7) and Quality of Education (SDG 4). However, challenges remain: 11 percent of indicators are stagnant, 14 percent are regressing, and there is insufficient data to evaluate another 44 percent.
Bangladesh has taken steps to report on its progress through mechanisms such as the Voluntary National Review (VNR). The country has presented two VNRs and plans to submit a third in 2025. In its most recent review, Bangladesh reported reductions in poverty, improved education, and expanded electricity access. Nevertheless, significant gaps remain, particularly regarding environmental targets, for which there is often limited data.
To move forward effectively, Bangladesh must not only maintain its commitment but also enhance its data generation, informing resource allocation and policy design. Identifying priorities among the SDGs is crucial, focusing on those with the potential for multiplier effects across interlinked goals.
The UN Development Programme’s Integrated SDG Insights Report, looking at over 90 countries, identifies key targets for Bangladesh: eradicating extreme poverty, promoting sustainable economic growth, achieving full employment, and reducing income inequality. Emphasizing these goals can create positive synergies, contributing to broader efforts related to health, education, and economic stability.
However, pursuing economic growth must be balanced with considerations for environmental sustainability and social equity. Policies promoting green growth and climate resilience are essential to prevent negative trade-offs that could undermine progress.
With renewed commitments made during the recent SDG Summit, Bangladesh aims to transform its socio-economic landscape through targeted actions across eight key areas, from social protection to sustainable energy. A crucial milestone will be achieving a smooth transition from LDC status by 2026 while aiming for Upper Middle-Income country status by 2031.
To achieve these ambitious outcomes, Bangladesh must shift from commitments to actions. The government has a strategic opportunity to refine its development trajectory. As highlighted by UN Secretary-General Antonio Guterres, the SDGs represent not only goals but also the hopes and rights of people everywhere. The commitment of Bangladesh and its partners to realize these goals is essential for ensuring progress and prosperity for all.
[The writer is the Managing Director & CEO of National Bank Limited and the first certified sustainability reporting assurer (CSRA) in Bangladesh].
