FFD4 document adopted with consensus, but rich countries heartlessly water down debt commitments

As negotiators at the United Nations’ (UN) Fourth Financing for Development Conference (FFD4) adopt the outcome document Roos Saalbrink, the Global Lead on Economic Justice at ActionAid, commented, “Adoption of the FFD4 outcome document is an important step towards the UN’s leadership in global economic governance, however, it does not commit to the system change that Global South countries have so long demanded.  

FFD4 has come at a critical time. Many low-income and vulnerable countries are trapped in a vicious cycle of debt, poverty and climate-induced crisis.’’ 

Our research found that more than three quarters (75.3%) of all lower-income countries spend more on foreign debt than healthcare, and more than half (51%) spend more on debt servicing than education. The system is failing people in the Global South and a reset of the system is urgently needed. 

"Lives depend on what is in this outcome document and ActionAid is concerned that Global North countries have continued to dodge their responsibilities and have refused to fully commit to debt resolutions at the UN."  

We need to see significant progress in establishing a fairer and more representative financial system, hosted at a well-resourced United Nations”, Roos, added. 

A further analysis of the final outcome document will follow.