Address at the UN Conference on Financing SDG Implementation: The Role of Integrated National Financing Frameworks

IMF News, May 28, 2020

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Delivered by Tao Zhang, Deputy Managing Director, IMF.
Delivered “As Prepared for Delivery” at a conference in Ashgabat, recognizing Turkmenistan’s early formal acceptance and integration of the Sustainable Development Goals into national socio-economic plans.
Emphasized that achieving the SDGs is an important priority for emerging markets and developing countries, with notable prior progress in the Caucasus and Central Asia region (CCA).

IMF study findings on additional annual spending required by 2030 for meaningful progress in health, education, and selected infrastructure:
- Emerging market economies: additional annual spending reached an estimated 4 percentage points of their combined GDP in 2030.
- Low-income developing countries: additional annual spending reached an estimated 15 percentage points of GDP in 2030.
- Countries in the CCA region represented at the conference: additional annual spending required reaches about 10 percentage points of their GDP in 2030.
Conclusion: Substantial external resources are needed when domestic efforts (mobilizing tax revenues, enhancing spending efficiency) are insufficient.

The pandemic increases spending needs and complicates SDG financing.
Risks and challenges highlighted:
- The crisis risks setting back previous achievements in human and social development, including equality and poverty reduction.
- Health and social spending needs increase as countries respond to the emergency.
- Revenue losses and higher debt in many countries are shrinking fiscal space.
- The crisis exposes structural shortcomings, such as limited social safety nets and uneven access to quality public services across groups.

Recovery as an opportunity to accelerate reforms needed to achieve the SDGs.
Key policy priorities:
- Increase efficiency of public spending to realize savings and reallocate spending to high-priority areas, including health, education, and infrastructure.
- Develop political and societal consensus to support efficient spending and reforms.
- Strengthen institutions and instill principles of transparency, accountability, and responsiveness.
- Create a business-friendly environment to engage the private sector in financing and implementation.

The IMF leverages macroeconomic and financial expertise and global membership to support member countries’ development efforts and global economic and financial stability.
Initiatives and support highlighted:
- Increased financial support for low-income developing countries.
- As of May 20, we have provided more than 16 billion of SDRs via emergency financing facilities to 59 countries.
- Bolstering support to fragile and conflict states to address unique challenges.
- Enhanced policy advice and capacity building on measures to promote inclusion and a sustainable macroeconomic environment.

Financing SDGs requires global and regional cooperation in addition to country ownership.
Complementary actors identified:
- Private sector
- Official development assistance
- Philanthropists
- International financing institutions
These actors can help accelerate efforts to close remaining financing gaps.

The conference addresses crucial issues at a difficult juncture; best wishes offered for its success.

Tao Zhang, Deputy Managing Director, IMF — May 28, 2020.