FM Sitharaman calls on private capital to work with govt, MDBs on Sustainable Development Goals | CPT PPP Coverage

Cryptopolytech (CPT) Public Press Pass (PPP)
News of the Day COVERAGE

200000048 – World Newser
•| #World |•| #Online |•| #Media |•| #Outlet |

View more Headlines & Breaking News here, as covered by cryptopolytech.com

Finance Minister Nirmala Sitharaman has called on private capital to “complement the efforts of governments and multilateral institutions” in the pursuit of the Sustainable Development Goals (SDGs), adding that philanthropic capital can also play a role by absorbing risks and lowering costs and help in mobilising private capital.

“The SDGs provide a shared blueprint for peace and prosperity for people and the planet, now and into the future. It is the collective responsibility of all stakeholders to participate in and contribute to this endeavour,” Sitharaman said on October 14.

Also Read: UNICEF says two-thirds of child-related SDGs off-track globally

“I invite the private sector to come forward and join the pursuit of this global vision,” she added.

The finance minister was speaking at a roundtable on reviving growth with inclusivity, organised by the Confederation of Indian Industry (CII) in Morocco, following the conclusion of the fourth meeting of G20 Finance Ministers and Central Bank Governors and the annual meeting of the World Bank Group and International Monetary Fund (IMF).

The 17 Sustainable Development Goals, adopted in 2015 by the members of the United Nations, address a variety of global challenges ranging from no poverty and hunger to sustainable cities and communities. These are supposed to be met by 2030.

Sitharaman’s comments come at a time when the financing of key global issues such as the SDGs are under the scanner, with rising pressure on Multilateral Development Banks (MDBs) such as the World Bank and IMF to change to help meet these objectives. At the recently-concluded annual meeting, President Ajay Banga said the World Bank will need to become a “bigger” bank so that it could become a “better” bank – and for that it will need the private sector’s help.

In her remarks on October 14, the Indian finance minister said that while 2030 was only seven years away, global progress on achieving the SDGs was at a mere 12 percent. Further, the coronavirus pandemic had led to an increase in the annual SDG financing gap to $3.9 trillion from $2.5 trillion in 2020 for just developing countries.

“The challenge of achieving the SDGs by 2030 is becoming difficult—and more costly,” she warned.

“In 2023, we have focused on social related SDGs such as health, education, poverty reduction, clean water and sanitation and mapped them against financial instruments like social impact bonds, SDG-linked bonds. We have developed recommendations which aim to mobilise private financing for SDGs through greater adoption of these instruments/bonds,” Sitharaman added.

Even as she called for great private involvement in meeting the SDG targets, the finance minister also said the private sector will have to make sure that their investments are sustainable for countries too.

“…that means, reconciliation of their commercial goals with the creation of public goods. The pursuit of SDG will have to be a sustainable endeavour in itself.”

Also Read: World Bank says global economy getting weaker, but US and India bright spots

Commenting on the global landscape, the finance minister said the resilience of the world economy is being tested by multiple headwinds, forcing nations to “brace for an uncertain future”. However, amid these difficult times, India “stands out as a beacon of hope and resilience for the world”, she said.