Ethiopia slams Addis Ababa Action Agenda implementation low performance

ADDIS ABABA- The implementation of the Addis Ababa Action Agenda of the United Nations’ (UN) Financing for Development is unsatisfactory and caused developing countries significant financing gaps, said Finance Minister.

Speaking at the opening of the first Preparatory committee conference on the fourth Financing for Development Conference, Ethiopian Finance Minister Ahmed Shide said that the Addis Ababa Action Agenda which the United Nations adopted in 2015, has not been implemented as anticipated.

“Despite some achievement, Developing countries like Ethiopia continue to face significant financing gaps which affect hard-earned progress and are exacerbated by recent global crisis such as the COVID-19 pandemic, political conflict and economic instabilities,” he said.

The agenda was expected to lead a new era of global cooperation and ambitious financing development. It underscored the need for a comprehensive holistic and transformative approach to achieve the 2030 agenda for sustainable development, he stated.

He also highlighted that the escalating burden, particularly concerning with many countries which are allocating more resources to death in services rather than investing in basic social service, is undermining financing for development.

He also underlined the need to lay out bold actions ensuring the realization of sustainable development goals.” We should critically examine the challenges and implement coordinates reductions to accelerate the implementation of sustainable development goals.

“We must advocate for comprehensive reform of the international financial architecture including improving global economic governance, enhancing data lab measures and reducing cost of sovereign borrowing.”

He also urged that explore and implement innovative finance in solutions to mobilize resources effectively.

Mobilizing private investment and strengthening multi-development banks are also important steps. Innovating climate financing mechanism, such as debt for climate swaps, carbon trading and green bondage should be promoted and extensively used, he mentioned.

He further noted that Ethiopia stands as a testament to resilience and determination striving to overcome challenges and forge bright future for its people.

“We embark on an ambitious transformation aiming to lift millions out of poverty, enhance infrastructure, improve education and ensure healthcare for all.”

As to him, significant stride has been made in poverty reduction, education, health, sustainable energy, and gender equality. In response to agenda 2030, the government of Ethiopia is committed to combating climate change. It has made substantial achievement in restoring millions of hectares degraded landscapes through initiative such as the Green Legacy initiative which is a champion initiative by the Prime Minister.

“We have managed to increase our national forest cover to 23.6 percent from 14.7 percent in 2014. Our paths on this climate resilient and green economy development focuses on reducing greenhouse gas emissions, promoting renewable energy sources like hydroelectric, wind and solar power, and fostering sustainable agricultural practices,” he added.

UN Deputy Secretary General, Amina Mohammed also said that most developing countries are facing high costs of capital. “Many of them cannot invest in the future as they struggle to meet their immediate needs, paying salaries and meeting debt service”.

The international financial flow is not based on developing countries’ economic outlook. Developing countries remains in bleak while the global economy has been described as in resilience, according to her.

There is a soft landing in the north but not in the south. The southern is a crash landing. The need for reform was evident in 2015. The series of shocks that have rocked the world since 2020 are a testament to the urgency of delivering on the Addis Ababa commitments, she underlined.

BY YESUF ENDRIS

THE ETHIOPIAN HERALD WEDNESDAY 24 JULY 2024

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