New York, USA Sept 2024 — Kenyan President William Ruto has called for radical reforms in global governance and financial systems to avert a looming sustainable development crisis.
In his address Sunday at the Summit of the Future’s Interactive Dialogue at the United Nations General Assembly in New York, Ruto called for urgent need to realign global development financing structures to meet the 2030 Agenda for Sustainable Development.
“The global economy is facing multiple shocks that threaten to undo the progress made towards the Sustainable Development Goals (SDGs),” Ruto said. He emphasized that while no country is immune to these shocks, many, particularly those where the majority of the world’s population lives, are more vulnerable. Ruto referenced the 2024 Inter-Agency Task Force on Financing for Development report, which has raised alarms about the increasing challenges to sustainable development due to financing shortfalls.
According to the Kenyan leader, the upcoming 4th International Conference on Financing for Development may be the final chance for the world to make the radical changes necessary to realign development paths in order to meet the SDGs by 2030. He highlighted the need to close financing gaps, bridge institutional divides, and restore trust in multilateralism.
“The current multilateral system is clearly struggling to address these immense, complex, and dynamic challenges effectively,” he said. Ruto criticized the existing global financial architecture, describing it as “dysfunctional” and increasingly ineffective, particularly in the context of addressing challenges faced by developing countries.
As a member of the SDG Stimulus Leaders Group, Ruto emphasized the importance of innovative, home-grown solutions for developing nations to meet their most pressing challenges. He urged reform of multilateral institutions that currently hinder progress, especially in low-income nations facing limited fiscal capacity, rising debt, and unequal access to credit.
“One in three developing countries is at risk of defaulting on their debt obligations,” he warned, citing unfair credit rating systems, uneven interest rates, and deteriorating global economic conditions exacerbated by the ongoing climate crisis. He described the current system as fostering a “development apartheid” that continues to widen the gap between developed and developing nations.
Ruto called attention to the fading momentum behind the Addis Ababa Action Agenda, which was intended to address these issues but has seen little progress. “Only 15% of the SDGs are on track,” he said, stressing that without urgent reforms, the growing finance gap will become a stark “sustainable development divide,” consigning millions to chronic vulnerability.
He voiced strong support for UN Secretary-General António Guterres’ call for a USD 500 billion SDG Stimulus package, which aims to secure long-term financing for sustainable development and undertake comprehensive reforms of the international financial architecture.
In his speech, Ruto also highlighted Kenya’s Bottom-Up Economic Transformation Agenda, which focuses on inclusivity for marginalized groups, particularly youth and women. He pointed out that inclusive development must remain central to global efforts.
“Let us unite around a commitment to act within a rapidly closing window of opportunity,” Ruto urged. “Any further delay will irreversibly derail our ambitions for sustainable development.”
Source: capitalfm
