Why Funders Must Step Up Financing for Development in 2025

• Opinion by Michael Jarvis (washington dc)
• Thursday, December 19, 2024
• Inter Press Service

Scheduled for June 30 to July 3, 2025, in Seville, Spain, this conference is not merely another gathering of world leaders and finance ministers. It represents a pivotal opportunity to reshape the global financial architecture and address critical issues such as climate financing, tax governance, and debt relief.

Yet, one vital partner in this process—philanthropy—remains largely underutilized. As governments navigate competing priorities and the private sector remains hesitant to fully commit to the development agenda, philanthropic funders have a unique role to play in ensuring that FfD4 delivers on its promise of equitable and sustainable outcomes.

Our recent report titled "Setting the Global Agenda for Tax, Debt, and International Aid through 2035," underscores this urgency. The report calls on funders to engage actively in the FfD4 process and outlines key ways they can contribute to its success.

One vital contribution is widening stakeholder participation. Philanthropic funders can ensure that Global South civil society organizations (CSOs) have a seat at the table by providing financial support for their participation. The FfD4’s inclusive intergovernmental format, managed by the United Nations, is unique in offering Global South countries an equal footing, but to influence the eventual outcomes you need to be in the negotiating rooms.

Earlier this month, government representatives began narrowing down their wishlist in discussions in New York, but it is expensive to send delegations. Funders can facilitate the engagement of Global South governments in negotiations by financially supporting their involvement. This helps amplify their voices and ensures that systemic reforms reflect their realities and needs.

Additionally, philanthropy can bridge underfunded areas by supporting innovative research and advocacy efforts, particularly in tax reform and debt governance. For example, among the proposals up for debate is creation of a tax on the super wealthy backed by a global asset registry, a concept built out with philanthropic support. Filling these thematic gaps is essential to assuring that FfD4 sets an ambitious agenda for the decade to come.

Another critical action is for funders to make public commitments aligning their strategies with the FfD4 agenda backed by new investments, so inspiring others and encouraging donor accountability. The real test of FfD4’s impact, however, will come in the follow-up phase. Continued funding from philanthropic actors will be critical to ensuring the promises made at the conference are translated into concrete actions.

At the heart of the FfD4 agenda are issues that demand urgent and transformative action. The global debt crisis, for example, has left many developing nations in a financial stranglehold, threatening their economic stability and ability to invest in health, education, and infrastructure. A UN-mandated legal framework for debt resolution and targeted relief measures could provide a lifeline, but these require sustained advocacy and pressure from all quarters, including philanthropic actors.

Similarly, taxation and illicit financial flows (IFFs) remain contentious issues. Developing countries lose an estimated $1 trillion annually to tax avoidance and evasion, undermining their ability to fund essential services. Philanthropy can support research and policy advocacy to ensure that Global South perspectives are at the forefront of these reforms.

Finally, the conference will revisit the role of private financing in closing the SDG funding gap. While leveraging private capital has shown mixed results, the philanthropic community can play a critical role in identifying and promoting alternative, effective solutions.

While philanthropy has often been a silent partner in the Financing for Development process, this is the moment to step forward and make a tangible and long-lasting impact. For funders, FfD4 is not just an event—it is a call to action. It is an opportunity to amplify the voices of the marginalized, push for systemic change, and hold governments and institutions accountable. The philanthropic community must seize this moment to drive reforms that prioritize equity, transparency, and sustainability.

The clock is ticking. The world is watching. And philanthropy must rise to the occasion.

Michael Jarvis is the Executive Director of The Trust, Accountability, and Inclusion (TAI) Collaborative. The TAI Collaborative is a network of philanthropic funders committed to advancing a world where power and resources are distributed more equitably, communities are informed and empowered, and governments and the corporate sector act with integrity for the good of people and planet.

IPS UN Bureau

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© Inter Press Service (2024) — All Rights ReservedOriginal source: Inter Press Service

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