Geneva, 23 March 2022 (TDI): The United Nations Conference on Trade and Development (UNCTAD) reports that the ongoing Russia Ukraine conflict could severely affect global finance. It could present a challenge in reaching SDG targets and worsen the debt burdens in many nations.
The worsening global financing could grow to as much as $3.6 trillion. Developing countries are likely to default on their debt agreements. This effect could make it extremely difficult to achieve sustainable development goals (SDGs).
The gap to finance the SDGs, such as ending poverty and battling world hunger, sits at $17.9 trillion between 2020 and 2025; the current annual gap is $3.6 million. Rebeca Grynspan, the Secretary-General of the UNCTAD, compared the ever-growing gap to an abyss. She also added that the poor are becoming poorer as their debt burden rises, and their ability to reach their SDGs seems very unlikely.
The financial fallout from the war in Ukraine could widen the already huge gap in financing needed to achieve the #GlobalGoals.
Emergency measures are needed to help developing countries cope with the war’s impacts, such as soaring food & fuel prices. https://t.co/XlynkRt7aG
— UNCTAD (@UNCTAD) March 23, 2022
The conflict has caused global liquidity to shrink, the cost of credit has increased manifold as investors turn to assets deemed less risky. The impact on government spending will put significant pressure on aid budgets.
Rebeca Grynspan called for emergency financial measures to help developing countries cope with the effects of the Russia Ukraine conflict, which includes increasing food and energy prices. She also called for collective efforts to promote sustainable growth in developing countries.
She added that these efforts should be underpinned by a sustained and structural push to help countries strengthen their productive capacities while also calling for long-term strategic investments in the private sector and the local, regional, and multilateral development banks.
Sustainable Development Goals (SDG)
The Sustainable Development Goals are 17 interlinked global goals set up by the United Nations General Assembly in 2015. These goals aim at ensuring the world’s long-term sustainability. Poverty eradication, high-quality education, gender equality, and climate action are just a few goals. The main objective is to achieve all 17 goals by 2030.
