## The Helen Alexander Lecture: The Case for the Sustainable Development Goals

_IMF News, September 17, 2018_

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**Canonical URL:** [The Helen Alexander Lecture: The Case for the Sustainable Development Goals](https://www.imf.org/en/news/articles/2018/09/17/sp09172018-the-case-for-the-sustainable-development-goals)

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## Bibliographic details
- Authors: Christine Lagarde
- Published: September 17, 2018

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### Framing and purpose
- Delivered by Christine Lagarde, Managing Director, International Monetary Fund, September 17, 2018.
- Focus: overlap between the Sustainable Development Goals (SDGs) and the IMF mandate for global economic stability and inclusive, sustainable prosperity.
- Four dimensions addressed: (i) economic (low-income countries), (ii) social (inclusion and equity), (iii) environmental (climate change), (iv) governance (strong institutions).

### 1. Economic dimension — meeting SDG needs in low-income countries
Findings and context
- The SDGs were endorsed in 2015 as a policy roadmap through 2030.
- Over a billion people have lifted themselves out of extreme poverty since 1990.
- Almost 800 million people remain mired in extreme poverty today.
- Child mortality has fallen by half since 1990, yet almost 6 million children still die each year before their fifth birthday.
- In sub-Saharan Africa, about a fifth of primary age children are not attending school.
- Across the world, 58 percent of students in primary and lower secondary school—617 million children—do not have basic proficiency in reading and mathematics.
- According to UNESCO, world poverty would be cut in half if all completed secondary education.

IMF actions and analysis
- IMF is estimating spending needs for five key sectors—education, health, water and sanitation, roads, and electricity—for both emerging markets and low-income countries, and is exploring financing solutions.
- Meeting additional spending needs in low-income countries will require partnerships among countries, official donors, philanthropy, and private finance.

Risks and constraints
- Debt in low-income countries is increasingly precarious: 40 percent of them now face high risk of debt distress or are unable to service their debt fully, up from 21 percent five years ago.
- Low-income countries are borrowing more on non-concessional terms, increasing interest service costs.

Policy implications (bulleted)
- Strengthen global partnerships and co-responsibility among stakeholders to finance SDG spending needs.
- Mobilize a blend of official development assistance, philanthropic funds, and private finance while ensuring debt sustainability.
- Prioritize public investment in human-capital-related sectors to enable long-term growth.

### 2. Social dimension — inclusion, inequality, and gender equity
Key findings
- Since 1980, the top one percent globally has seen twice as much of the gains from growth as the bottom 50 percent.
- Income inequality has risen in most advanced economies; inequality has fallen between countries but not necessarily within countries.
- IMF research finds reducing inequality is associated with stronger and more sustainable growth.

Role of public policy and private sector
- Public investment in health, education, and social protection systems plays an important role in reducing inequality.
- The private sector should expand its economic and social responsibility, especially in the context of the Fourth Industrial Revolution.

Gender-specific findings and impacts
- About 90 percent of countries have some legal restriction on women’s economic activity.
- In the UK, eliminating gender gaps in labor force participation can boost GDP by 5 to 8 percent.
- In sub-Saharan Africa, lowering gender inequality by 10 percentage points could boost growth by 2 percentage points over five years.
- Adding one more woman in senior management or to a corporate board raises the return on assets by 8-13 basis points (cited study).
- Across the globe, less than a fifth of bank board members and only two percent of bank CEOs are women.
- The Hampton-Alexander Review recommended raising the share of women on executive committees of FTSE 100 companies to 33 percent by 2020, up from 26 percent.

Policy recommendations (bulleted)
- Reduce gender gaps in health and education and support financial inclusion, infrastructure, and access to clean water and sanitation in low-income countries.
- In advanced economies, implement policies such as parental leave and affordable, high-quality childcare to raise female labor force participation.
- Promote female leadership in corporate governance to improve decision-making, financial resilience, and long-term sustainability.

### 3. Environmental dimension — climate change and the SDGs
Findings and context
- Climate change is intensifying: more frequent and ferocious storms and habitual heatwaves threaten well-being, particularly for children.
- The Paris Agreement commits nations to reduce carbon emissions with the goal of stopping global temperatures rising by more than 2 degrees Celsius over pre-industrial levels.
- Moving toward a zero-carbon global economy over coming decades is necessary and challenging.

Policy tools and IMF role
- The IMF advocates putting a price on carbon:
  - Carbon pricing is administratively feasible by integrating carbon charges into fuel tax systems.
  - Carbon taxes provide incentives for energy efficiency, shifting from fossil fuels, and electrification.
  - Carbon taxes can reduce air pollution and raise revenue of about 1-2 percent of GDP a year, revenue that could be devoted to SDG priorities.
- Even after China’s emissions trading system comes into force in 2020, 80 percent of global emissions will remain unpriced.
- Adaptation measures needed in vulnerable countries include coastal protection, resilient infrastructure, resilient agriculture, regional pooling schemes, contingency funds, and catastrophe bonds.

IMF engagement
- IMF Climate Change Policy Assessments have evaluated climate strategies in vulnerable countries, including Belize, Seychelles, and St. Lucia.
- IMF provides fast and flexible emergency funding to countries hit by severe climatic shocks and supports building resilient policy frameworks.

### 4. Governance dimension — institutions, corruption, and tax issues
Findings and risks
- SDG success depends on “effective, accountable and inclusive institutions at all levels.”
- Corruption undermines trust, delegitimizes institutions, reduces tax compliance, and can divert spending toward low-social-value projects that generate kickbacks.
- IMF research finds corruption and weak governance are associated with lower growth, investment, and tax revenue collection—and with high inequality and social exclusion.
- One estimate cited: the wealth in offshore financial centers reaches 10 percent of global GDP, complicating efforts to finance SDG priorities.

Policy approach and IMF stance
- Criminal enforcement against corruption is essential but insufficient on its own.
- Successful anti-corruption initiatives are built on institutional reforms emphasizing transparency and accountability—for example, greater transparency across government budgets.
- The IMF is stepping up engagement on governance and corruption, focusing on strong economic institutions, and will call out corruption when it is macroeconomic in magnitude.

### Conclusion — legacy, generations, and the imperative
- Success with the SDGs will define this generation’s legacy; the lecture invoked the image of planting seeds in a garden you never get to see.
- Partnership, practicality, decency, and strong institutions are emphasized as essential to achieving the SDGs.
- The lecture honored the memory and values of Dame Helen Alexander—her pragmatism, commitment to education, business leadership, and integrity—as a model for pursuing the SDGs.

*By Christine Lagarde, Managing Director, International Monetary Fund. September 17, 2018.*

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## References

- [Christine Lagarde](https://www.imf.org/en/About/senior-officials/Bios/christine-lagarde)
- [Staff Discussion Note: Women in Finance: A Case for Closing Gaps](https://www.imf.org/en/publications/staff-discussion-notes/issues/2018/09/17/women-in-finance-a-case-for-closing-gaps-45136)
- [St. Lucia and the IMF](http://www.imf.org/external/country/LCA/index.htm)
- [The IMF and Good Governance -- A Factsheet](https://www.imf.org/en/about/factsheets/sheets/2023/the-imf-and-good-governance)
- [IMF-World Bank Debt Sustainability Framework for Low-Income Countries -- A Factsheet](https://www.imf.org/en/about/factsheets/sheets/2023/imf-world-bank-debt-sustainability-framework-for-low-income-countries)
- [Speeches](https://www.imf.org/en/news/searchnews)
- [PRESS CENTER](http://presscenter.imf.org/)
- [https://www.imf.org/en/home](https://www.imf.org/en/home)

_Source: https://www.imf.org/en/news/articles/2018/09/17/sp09172018-the-case-for-the-sustainable-development-goals_