As the Fourth Financing for Development Conference approaches, developing countries, including Ethiopia, have been voicing strong calls for reforms of international funding mechanisms. At the first preparatory conference for FfD4, which concluded last Friday, Ethiopia argued that current climate financing systems are inadequate to address the growing climate crisis.
Many participants of the preparatory conference, including the United Nations Deputy Secretary-General,Amina Mohammed, emphasized the need for new approaches that would enable more equitable and effective financial support for countries combating climate change.
The upcoming main conference on Financing for Development, scheduled to be held in Spain, is expected to advocate for crucial reforms and reshaping of financial funding to better serve developing countries affected by climate change, which is believed to be caused predominantly by developed nations.
United Nations Economic Commission Executive Secretary Claver Gatete strongly called for reforms within international financial institutions, criticizing them for their unbalanced contributions. He stated that the world has almost adequate resources to fight climate change but needs to distribute them fairly.“The international financial architecture created nearly 80 years ago needs to be reformed to respond to the most pressing challenges of African countries in a more effective and inclusive manner.”
As one of the developing countries contributing less to the crisis, Ethiopia has criticized developed countries for their reluctance to fund environmental projects. For example, the Green Legacy Initiative (GLI), through which Ethiopia has been planting billions of trees each year, has not received financial support from international funders, according to the Foreign Minister, TayeAtsekeselassie’s speech on the opening the FfD4 first preoperational conference.
Finance Minister Ahmed Shide also told journalists that Ethiopia expects better platforms to address the continuing financial constraints hindering developmental programs, including environmental conservation projects.
Ethiopian Ambassador to the United Nations, TesfayeYilama, also stated that Ethiopia expects meaningful decisions from the Spain conference of FfD4. He emphasized that Ethiopia is not arguing solely for its interests. Developing countries, particularly in Africa, are victims of the international sovereign debt system, and developmental projects, including environmental ones, are affected by a financial system that contradicts global missions.
Developing countries have similar complaints. Financial institutions like the IMF were founded by countries that won World War II. Developing countries now demanding funds are not represented in organizations like the International Monetary Fund and the World Bank. The engagement of developing countries in these organizations is minimal or nonexistent. Consequently, decisions to fund developmental projects are based on the free will of funding countries.
Ongoing discussions under the framework of the United Nations’ agencies are expected to bring some solutions, as the number of countries arguing for fair financing is growing.
Upcoming sessions of the preparatory committee will be held in the U.S., New York in December 2024, as well as in February and April 2025, according to UN report.
BY YESUF ENDRIS
THE ETHIOPIAN HERALD SUNDAY EDITION 28 JULY 2024
