Context

• The 'Financing for Sustainable Development Report 2024' released by the United Nations states that there is a need to take urgent steps to mobilise large-scale funds to close the financing gap necessary for development.

Key Points

• According to this report, most of the developing countries are facing a permanent development crisis due to debt burden and skyrocketing borrowing costs.
• According to Amina J. Mohammed, Deputy Secretary-General of the United Nations, the world is at a crossroads in terms of the Sustainable Development Goals and time is running out. The UN Sustainable Development Goals by 2030 cannot be met without adequate financing.
• It is noteworthy that an investment of approximately $4.2 trillion is required to bridge the development financing gap.
• Apart from this, the report states that about 40 percent of the global population lives in countries where governments spend more on interest payments than on education or health.
• Furthermore, major sources of development funding are now slowing down.
• For example, domestic revenue growth has stagnated since 2010, especially in LDCs and other low-income countries, partly due to tax evasion.
• According to the report, due to globalisation and tax competition, corporate income tax rates are falling, with global average tax rates falling from 28.2 percent in 2000 to 21.1 percent in 2023.
• Official development assistance (ODA) and climate finance commitments from OECD countries are not being met despite ODA increasing to $211 billion in 2022 from $185.9 billion in 2021.

Need Of The Hour

• What is currently needed is a new coherent system that is better equipped to respond to crises.
• Increase investment in the SDGs, particularly through stronger multilateral development banks and improve the global safety net for all countries.
• It should be noted that only six years are left to achieve the SDG targets.
• If current trends continue, the United Nations estimates that about 600 million people will live in extreme poverty in 2030 and beyond, more than half of whom are women.

Factors affecting sustainable development goals

• Increasing geopolitical tensions
• Climate disasters
• Global survival crisis etc.

Current Situation of India

• According to the above report, India's economy is strong, India is developing rapidly, there is an affordable labour force to meet the domestic needs.
• Many such efforts have been made in India like Make in India, product based incentives, easy conditions for foreign direct investment and single window governance, due to which the interest of multinational companies in India is increasing. India is benefiting from the investment of these companies.
• According to this UN report, India remains a strong recipient of foreign investment, as multinational companies are accepting India as an alternative manufacturing base in the global supply chain.

Important Facts For Exams

• Note - In the year 2015, in the 70th meeting of the United Nations General Assembly, under the '2030 Agenda for Sustainable Development', 17 development goals i.e. SDGs and 169 objectives have been adopted by the member countries.

17 sustainable development goals

1.No poverty

2.Zero hunger

3.Good health and happiness

4.Quality education

5.Gender equality

6.Clean water and sanitation

7.Cheap and clean energy

8. Good work and economic progress

9. Industry, Innovation and Infrastructure

10. Reduction in inequalities

11.Sustainable Cities and Communities

12.Responsible consumption and production

13.Climate action

14.Life under water

15.Life on land

16.Peace, justice and strong institutions

17. Partnership for goals