The workshop gathered representatives of the United Nations, Member States, international financial institutions, multilateral development banks (MDBs), the private sector, think tanks, and experts to exchange views on how to strengthen collaboration between IFIs and the UN system, feeding into preparations ahead of the upcoming 4th International Conference on Financing for Development (FfD4) in Seville.
Key takeaways from the discussion include:
- To tackle global challenges like climate change and debt, IFIs and MDBs must act as both providers and connectors, promoting transparency, accountability, and inclusive partnerships.
- A preventive approach to debt is needed. There is also a growing intersection of debt sustainability and sustainable finance to meet development goals.
- Rising borrowing costs, deteriorating credit quality, and limited market access are straining emerging markets at a time of massive investment needs. Addressing this requires robust sovereign debt strategies, stronger institutions, and resilient capital markets to ensure funding flows to critical areas like health and climate finance, not just debt servicing.
- Geopolitical tensions and aid freezes have stalled progress on closing the climate finance gap, making it even more urgent to mobilize private capital.
- There is major potential for improvement in investor relations and involving the private sector more systematically can lower borrowing costs and enhance debt sustainability.
- Partnerships must always remain outcome-focused. Therefore, efficiency and competitiveness must be ensured at all stages of collaborative efforts. More can be done to strengthen institutional alliances and collaboration at the level of country platforms and joint analysis between the UN and World Bank.
