Global South return home 'empty-handed' as summit delivers disappointing blow

As the curtain closes on the global development summit – the Fourth Financing for Development conference - in Seville today, ActionAid has expressed disappointment at the underwhelming outcome. The organisation says it will continue its fight for debt cancellation and a fairer global economic governance system despite the weak result. 

The summit is a missed opportunity to deliver real and transformative systems change for the millions of lives, especially in the Global South, who are crushed by the escalating debt crisis.

Arthur Larok, the Secretary General of ActionAid International, said: 

"Global South countries are returning home empty-handed, left to deal with the devastating fallout of a debt crisis and an unjust global financial system that condemns millions of people to limited healthcare services, grossly underfunded education, and failing public services. Meanwhile, Global North governments return to their homes free from responsibility.”

Larok added, "In the end, the rhetoric of solidarity was not matched by the necessary action to address the systemic inequities that perpetuate poverty and injustice.”

Roos Saalbrink, the Global Lead on Economic Justice at ActionAid, said:

“The human cost of the current system is unacceptable. How much further do public healthcare and education services need to be cut before governments do away with outdated economic rules?

“The lack of decisive action on debt relief and a reformed financial system has put a dent in the aspirations for a sustainable and equitable world. This will continue to remain a distant dream for those who need it most.

Saalbrink concluded: “It is sad that we go back to the world as it was before this summit. The imbalanced and unfair financial system that centres the role of the IMF in governance decisions will continue to serve the interests of the Global North countries at the expense of the Global South.”

ActionAid said the human cost of the failure to resolve the debt crisis is mostly borne by women.  

Wangari Kinoti, the Global Lead on Women’s Rights at ActionAid International, said,

“The deafening silence on the debt and climate crises in Seville reverberates loudly throughout the Global South. And women continue to pay the price, unwillingly absorbing shocks and subsidising government cuts through more unpaid care and domestic work, precarious and exploitative paid work, diminished livelihoods and increased gender-based violence.   

“We cannot accept this race to the bottom in a system that is hardwired to increase inequalities. We are committed to every effort to build a new global economic system that delivers gender justice.”

Financing for Development negotiations in Seville took place amid a record-breaking heatwave.

Teresa Anderson, Global Lead on Climate Justice at ActionAid International, added:

“Debt is one of the biggest factors preventing countries on the front lines of the climate crisis from taking climate action. As the spiralling costs of climate disasters force governments to take on unfair loans, many are obliged to cut investments in climate action and expand their exports of fossil fuels or destructive agriculture to repay their debts. As our planet heats up, the need to end the vicious cycle of climate-destructive debt is more urgent than ever before.”