Agreement reached on Financing for Development

Norway’s UN Ambassador, Geir O. Pedersen, has led the negotiations on the outcome document from the Third International Conference on Financing for Development, which is being held in Addis Ababa this week.

‘This is the first time agreement has been reached on a global framework for financing development, which includes economic growth, environmental sustainability and social development. This robust, ambitious document provides a foundation for implementing the new sustainable development goals to be adopted in September. It stakes out the course for individual countries and the international community in their efforts to ensure sustainable economic growth,’ Mr Brende said.

A clear ambition of the outcome document is for a greater proportion of development aid to be channelled to the least developed countries, while the countries themselves must assume more responsibility for generating domestic revenues, particularly through taxation. The document underscores the need for better coordination of private and public capital flows to developing countries, as well as the need for a good political and economic framework, both nationally and internationally. Greater emphasis should also be given to gender equality and the economic empowerment of women.

‘Including women in the economy is crucial for a country’s growth, as Norway’s experience shows. It is good that this is increasingly being recognised internationally,’ said Mr Brende.

In the years ahead, aid should play an important role in mobilising other capital for development, from both the private and the public sector. There is a need for greater investment in infrastructure, health and education, agricultural production and better conditions for private enterprise. The international community must put a stop to the vast illicit capital outflows from developing countries.