“In a trade war, everybody loses – especially the most vulnerable countries and people, who are hit the hardest,” Guterres asserted, painting a grim picture of the potential consequences for the world’s poorest populations.
Top United Nations officials have issued a stark warning about a burgeoning $4 trillion annual shortfall in development financing, compounded by escalating trade tensions, which together threaten to derail the Sustainable Development Goals (SDGs) and even reverse hard-won progress in global health. Speaking at the UN Headquarters in New York during the Economic and Social Council (ECOSOC) annual forum on financing for development, Secretary-General António Guterres, General Assembly President Philémon Yang, and ECOSOC President Bob Rae underscored the urgent need for increased resources and a fundamental overhaul of the global financial architecture.
Their dire pronouncements follow closely on the heels of last week’s World Bank and International Monetary Fund (IMF) Spring Meetings, where concerns about faltering global growth, intensifying trade disputes, and the ballooning debt burden in developing nations took centre stage. Without decisive action, the UN leaders cautioned, the world stands precariously close to falling further behind in its commitments to eradicate poverty, combat climate change, and foster sustainable economic development.
Secretary-General Guterres minced no words, telling delegates that the ECOSOC Forum arrives at a “pivotal time,” with global cooperation itself facing significant threats. He highlighted the escalating trade friction as a major destabilising factor. While acknowledging that fair trade exemplifies the benefits of international collaboration, he stressed that the alarming surge in trade barriers presents a “clear and present danger” to the global economy. This assessment aligns with recent downward revisions to global growth forecasts issued by the IMF, the World Trade Organisation (WTO), and UN economists.
“In a trade war, everybody loses – especially the most vulnerable countries and people, who are hit the hardest,” Guterres asserted, painting a grim picture of the potential consequences for the world’s poorest populations.
SDGs “Dramatically off Track”
Adding to the crisis, Guterres pointed out the concerning trend of many donor nations scaling back their aid commitments at a time when soaring borrowing costs are severely constraining public investments. This confluence of factors is pushing the SDGs “dramatically off track.” With a mere five years remaining to achieve the ambitious 2030 agenda, he implored countries to “shift into overdrive” and deliver tangible outcomes at the upcoming Fourth International Conference on Financing for Development in Seville, Spain. “Against this turbulent background,” he urged, “we cannot let our financing for development ambitions get swept away.”
ECOSOC President Bob Rae echoed these grave concerns, emphasising the staggering reality that over three billion people reside in countries where governments are forced to allocate more funds to servicing debt interest than to crucial sectors like health and education. “We desperately need a more affordable debt architecture – it’s that simple,” Rae stated emphatically, calling for immediate reforms that would provide developing nations with a fair opportunity to repay their obligations while simultaneously investing in their future prosperity.
Rae also raised the alarm regarding the increasing prevalence of trade barriers, citing recent protectionist measures implemented by major economies, including the United States. “Trade is not a four-letter word,” he declared, “it is a positive way for countries to exchange goods and services and emerge from poverty.” He implored nations to abandon the notion of trade as a zero-sum game with clear winners and losers, and instead embrace fair, open trading systems as a pathway to shared global prosperity.
For instance, none of the targets under SDG 6 on water and sanitation are on track to be met. Globally, over two billion people lack access to safe drinking water, and more than three billion lack access to safe sanitation.
Transcend Mere Declarations
General Assembly President Philémon Yang further highlighted the detrimental consequences of mounting debt burdens and shrinking fiscal space. He pointed out that in over 50 developing countries, governments now spend more than 10 per cent of their revenues on debt servicing, with this figure exceeding 20 per cent in 17 of those nations – a stark warning sign of potential defaults, according to UN economists. “Our inability to reform the international financial architecture is severely restricting capital access,” Yang cautioned, stressing that bridging the estimated $4 trillion annual financing gap is absolutely critical to achieving the SDGs. “Time is of the essence. Let us use this ECOSOC Forum to bridge divides, build trust, and lay the foundation for success.”
Looking ahead to the crucial negotiations in Seville, Secretary-General Guterres outlined three priority areas for action: tackling unsustainable debt, strengthening multilateral development banks, and unlocking new avenues for sustainable finance. He called for intensified efforts in mobilising domestic resources, exploring innovative financing solutions, implementing stronger controls on illicit financial flows, and forging more robust partnerships with the private sector.
ECOSOC President Rae added that the discussions must transcend mere declarations and translate into concrete, measurable action. “We need innovation, creativity and partnerships that deliver lasting and transformative impact,” he asserted. The Fourth International Conference on Financing for Development, scheduled to take place in Seville from June 30 to July 3, stands as a pivotal opportunity to reshape the global financial system and unlock the urgently needed investments to realise the SDGs.
According to UN agencies, the 17 Sustainable Development Goals are all interconnected, for instance progress on SDG 2 to end hunger is closely tied to advances in health and education.
Resurgence of Diseases
The repercussions of these funding shortfalls are already being felt acutely in critical sectors like global health, threatening to reverse decades of progress in combating infectious diseases. The World Health Organisation (WHO) issued a stark warning on Thursday that cuts to global health funding are contributing to a resurgence of diseases that had been largely eradicated through vaccination efforts.
Tedros Adhanom Ghebreyesus, Director-General of the WHO, emphasised that “funding cuts to global health have put these hard-won gains in jeopardy.” He highlighted the success story of Africa’s “meningitis belt,” where vaccination campaigns had effectively eliminated meningitis A. Similarly, enhanced routine immunisation programs and emergency vaccine stockpiles had dramatically reduced cases and deaths from yellow fever. However, this progress is now under serious threat due to dwindling financial support.
The impact of these budget cuts is already evident in rising disease outbreaks. In 2023, measles cases were estimated at over 10.3 million globally, marking a significant 20 per cent increase compared to the previous year. The WHO, alongside the UN Children’s Fund (UNICEF) and their partners, issued a joint statement at the start of World Immunisation Week, warning that this alarming upward trend is expected to persist into 2025.
Yellow fever is also making a concerning comeback. After years of declining cases in Africa, attributed to improved vaccine access, 2025 has already witnessed a surge in outbreaks across the continent, with confirmed cases also reported in the Americas.
Prioritise, Support Immunisation Programmes
The challenges facing vaccination efforts are multifaceted, encompassing misinformation, population growth, humanitarian crises, and, critically, funding cuts. A recent WHO review across 108 countries revealed that nearly half are experiencing moderate to severe disruptions to vaccination campaigns, routine immunisations, and supply chains as a direct consequence of declining donor support.
Catherine Russell, Executive Director of UNICEF, painted a stark picture of the human cost, stating, “The global funding crisis is severely limiting our ability to vaccinate over 15 million vulnerable children in fragile and conflict-affected countries against measles.”
Health experts underscore the remarkable cost-effectiveness of immunisation, emphasising that every $1 invested in vaccines yields an estimated return of $54 through improved health outcomes and enhanced economic productivity. Vaccines currently save approximately 4.2 million lives annually, providing protection against 14 different diseases, with nearly half of these lives saved in Africa. Despite these compelling statistics, the current decline in investment risks the resurgence of diseases once thought to be under control, jeopardising the health and well-being of millions, particularly the most vulnerable populations.
UNICEF, WHO, and their partners are urgently appealing to parents, the public, and political leaders to prioritise and support immunisation programmes, ensuring sustained long-term investment in vaccines and robust public health systems.
They say that the unfolding crisis in development financing underscores the interconnectedness of global challenges. Cuts in development aid not only hinder progress towards the SDGs but also directly undermine critical health initiatives, “threatening to reverse decades of hard-won gains and expose millions to preventable diseases,” as Ghebreyesus says. “The urgent call for a global financial overhaul and renewed commitment to international cooperation has never been more critical.”
Image: UNICEF
