Speaking at the United Nations Headquarters in New York, global leaders have issued an urgent call for a complete overhaul of the international financial system, warning that without bold action, the world risks failing to meet critical targets like ending poverty, combating climate change, and building sustainable economies.
During the ECOSOC 2025 Forum on Financing for Development Follow-up, key UN figures including Secretary-General António Guterres, General Assembly President Philémon Yang, and Economic and Social Council (ECOSOC) President Bob Rae highlighted deepening global inequality, unsustainable debt burdens, and the decline in international aid as major barriers to progress.
“With just five years left to reach the Sustainable Development Goals (SDGs), we need to shift into overdrive,” Guterres stressed, urging nations to take decisive steps ahead of the Fourth International Conference on Financing for Development scheduled for June 30 – July 3 in Seville, Spain.
Trade Tensions Undermining Global Growth
Guterres warned that escalating trade tensions and the rise in protectionism pose a “clear and present danger” to the global economy. He cited recent downgrades in global growth forecasts by the International Monetary Fund (IMF), World Trade Organization (WTO), and UN economists.
“In a trade war, everybody loses – especially the world’s most vulnerable,” he said.
Debt Crisis in Developing Countries
Echoing these concerns, ECOSOC President Bob Rae revealed that over three billion people now live in countries where more is spent on debt interest payments than on essential services like health and education.
“We desperately need a more affordable debt architecture – it’s that simple,” Rae emphasized.
He also cautioned against viewing trade as a zero-sum game, advocating for fair and open trading systems that allow developing countries to participate meaningfully and escape poverty.
Time to Act: $4 Trillion Annual Gap
General Assembly President Philémon Yang added that more than 50 developing nations are already devoting over 10% of their national revenues to debt servicing — with 17 countries surpassing 20%, a red flag for looming defaults.
“Our inability to reform the international financial architecture is severely restricting capital access,” Yang warned, noting the financing gap now exceeds $4 trillion annually.
He urged global leaders to use the ECOSOC Forum as a platform to “bridge divides, build trust, and lay the foundation for success.”
Seville: A Crucial Turning Point
Looking ahead to the Seville conference, Secretary-General Guterres outlined three urgent priorities:
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Tackling unsustainable debt
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Strengthening multilateral development banks
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Unlocking new streams of sustainable finance
He called for innovative financing models, stronger partnerships with the private sector, better controls on illicit financial flows, and the mobilization of domestic resources.
Rae added that the time for vague commitments is over:
“We need innovation, creativity, and partnerships that deliver lasting and transformative impact.”
As the countdown to 2030 continues, global leaders now face the monumental task of revitalizing international cooperation and financing to ensure the SDGs are not left behind.
