FfD4 - Weakened words, missed opportunities: Global North fails the Global South
- US withdrawal breaks historic consensus, isolating itself from global decision-making.
- Debt reform efforts diluted to vague recommendations
- Key climate finance commitments and fossil fuel subsidy phase-out language removed
In response to the fourth Financing for Development Conference (FfD4) Outcome Document being approved last night with the US withdrawing from the process, Emma Burgisser, Christian Aid’s Economic Justice Lead said:
"This was a missed chance to make the global economy fairer and more democratic, as the US, EU, and UK repeatedly blocked and weakened potential progress at FfD4.
“The UK not only turned up to FfD4 empty-handed; it helped block the changes needed to deliver economic justice. It has managed to reset relations backwards and disrespectfully ride roughshod over the reasonable demands of Global South governments.
“In the face of a mounting global debt crisis, climate breakdown and gaping global inequalities, the UK must choose whether to stand with the world’s poorest people to deliver justice, or continue to prop up a global system that is driving these crises.
“Given the far-reaching consequences that decisions made at this conference will have, the adoption of the weakened text was heartbreaking to watch unfold. As the Kenyan delegate warned, decisions made at FfD4 will shape the lives of future generations that are not represented in the room. We must not leave them with a legacy of inequality and exclusion.
“Nevertheless, some gains were secured and this process has galvanised the voice, unity, and determination of Global South countries, alongside global movements for economic and climate justice. The demand for a transformed global economic system - one that serves and is shaped by the world’s most marginalised communities - is louder than ever.
“The genie is out of the bottle. We’re not putting it back.”
Key Changes in the FfD4 Outcome Document included:
- US Withdrawal Ends Consensus: For the first time, the Outcome Document was approved without US support, signaling a shift in global leadership and weakening multilateral cooperation.
- Debt Reform Mandate Weakened: The call for a strong UN-led intergovernmental process on debt architecture was reduced to a mandate to only “make recommendations,” falling short of effective reform.
- Climate Commitments Diluted: Language reaffirming climate finance obligations under the UNFCCC and Paris Agreement, including the principle of Common But Differentiated Responsibilities and Respective Capabilities (CBDR-RC), was removed.
- Fossil Fuel Subsidy Phase-Out Deleted: The paragraph committing to phase out fossil fuel subsidies was completely removed despite growing climate risks and debt vulnerabilities linked to fossil finance.
- Tax Convention Support Softened: Support for a UN Tax Convention was weakened from “support” to merely “constructive engagement,” at a time when mobilising domestic resources is crucial amid global budget cuts.
ENDS
For more information see our FfD4 press pack
For interviews, contact Louise Orton, loorton@christian-aid.org, +447939141764