SEVILLE, Spain - The Economic Commission for Latin America and the Caribbean (ECLAC) says Latin America and the Caribbean countries, the majority of which are classified as middle-income, face growing challenges that require a reformulation of the criteria and mechanisms that govern the conditions for accessing financing and international development cooperation.
ECLAC Executive Secretary, José Manuel Salazar-Xirinachs (second from left), participated in several events of the Fourth International Conference on Financing for Development (photo: ECLAC).ECLAC made the position known at the Fourth International Conference on Financing for Development (FFD4), which ended here on Thursday.
It said given the challenges related to financing for development, the LAC countries need to strengthen their capacities to mobilize resources and forge cooperation mechanisms based on metrics that reflect each country’s needs as well as their overall heterogeneity.
ECLAC, which participated in various sessions at the five-day conference that was attended by more than 50 international leaders, delegates from 150 countries and 15,000 representatives of all areas of society, said it promoted the region’s voice and commitment with concrete proposals for fostering sustainable development with gender equality, tax justice and multilateral cooperation.
The global forum was convened by the United Nations General Assembly (UNGA) to reform the international financial architecture and accelerate implementation of the 2030 Agenda.
ECLAC’s executive secretary, José Manuel Salazar-Xirinachs, who led the ECLAC delegation, noted that in their conversations with authorities from national governments, international organizations, experts and representatives of academia and civil society, it was clearly established that the resulting “Seville Commitment” approved by governments, attest to the global commitment to forge a renewed framework for development financing.
“Due to their importance in the global economy, middle-income countries (MICs), including those from Latin America and the Caribbean, are central to the implementation of the 2030 Agenda.
“However, they face significant structural challenges for achieving development, which are related to the three traps identified by ECLAC in which the region is mired: low capacity for growth; high inequality, low social mobility and weak social cohesion; and low institutional capacity and ineffective governance,” said Salazar-Xirinachs.
The senior United Nations official added that the exclusive use of gross domestic product (GDP) per capita to guide the allocation of resources limits the efficacy of cooperation for development and restricts countries’ ability to leverage additional resources.
He said it is critical to move towards international cooperation schemes that use more comprehensive indicators capable of capturing the needs and structural diversity of the region’s countries.
The ECLAC’s Executive Secretary, who spoke at a side event entitled “New Approaches for Renewed International Cooperation: ‘Insights for the Beyond GDP Global Alliance,” recalled the efforts being made to advance a development measurement that goes beyond GDP, which includes the “Development in Transition” framework developed in strategic partnership with the Organisation for Economic Co-operation and Development (OECD) and the European Commission, along with the “Multidimensional Poverty Index of Latin America (MPI-LA).
“We must act together to forge a global consensus on describing development in a broader way. That is why ECLAC supports the international community in forging a ‘Beyond GDP Global Alliance.
“We conceive of this Alliance as being a crucial mechanism for putting into practice the commitments of the Pact for the Future (adopted by the United Nations in September 2024),” he added.
He also provided an overview of ECLAC’s perspective regarding financing for development in Latin America and the Caribbean and follow-up to the outcomes of the Seville conference at a separate event.
“As we approach 2030, Latin America and the Caribbean finds itself at a critical crossroads and faces profound challenges for mobilizing the resources needed to achieve the SDGs and support inclusive, resilient and sustainable development.
“The shortage of financing for development is enormous in our region, since Latin America and the Caribbean faces a regional financing gap of approximately US$650 billion dollars a year,” the ECLAC official added.
Regarding the future of financing for development, he said that the role of the UN Regional Commissions is more crucial than ever since they are in a unique position to support their member States in implementing and monitoring the outcomes of the FFD4 conference.
“The regional commissions play a fundamental role in promoting reforms of the international financial architecture. By articulating regional perspectives and priorities, we can contribute to shaping the global debates and ensuring that the voices of our member States are heard in international forums,” he said.
