A crucial moment

At the 2023 UN High-Level Political Forum, it was noted that a new financial architecture requires a redefinition of returns to move beyond short-term capital generation, and a reimagining of public-sector policies to focus public resources on sustainable outcomes. In the coming years, we need to see an acceleration in the construction of the new financial architecture. The next Finance for Development Conference, to be hosted by Spain in 2025, provides an opportunity to build the needed momentum.

The path forward

UNDP has set an ambitious goal to work with public- and private-sector actors in order to promote the investment of over US$1 trillion in the SDGs. This is a rallying call for stronger multilateral cooperation, without which we will never bridge the financing gap for a peaceful and prosperous future. 

This requires development institutions and finance institutions to come together as part of a sustainable finance architecture where every financial decision is based upon both financial and development returns. We need to work together through finance and development forums such as the United Nations and G20 towards a common agenda.

As we move on in 2024, let’s not miss opportunities to make this happen, including in the upcoming Summit of the Future. 

To build a sustainable financial system, we need not abandon profitability. But the challenges created by our current system have brought us near a tipping point. This moment in history is a unique opportunity for development and financial actors, governments, businesses and civil society to come together and create a global financial system that leaves no one behind.