The Philippines has thrown its support behind a commitment to reform international financial systems to address the $4-trillion, or around ₱225-trillion, annual gap in sustainable development funding.

Presented during the recent Fourth International Conference on Financing for Development (FFD4) in Spain, 192 out of the 193 member states of the United Nations (UN) endorsed the Sevilla Commitment—named after the host city.

The 38-page outcome document affirmed a global pledge to take concrete actions to unlock innovative financial resources, enhance fiscal space, and lower the cost of capital, among others.

One of the key priorities is to address the debt challenges of developing countries, especially in areas where spending on interest exceeds that of health or education.

An analysis from the UN Conference on Trade and Development (UNCTAD) showed that approximately 3.4 billion people are living in countries under this setup, restricting their access to services critical for development.

Through the Sevilla Commitment, UN member states strive to deliver adequate and accessible financing from all sources, alongside support through fairer debt mechanisms and stronger support for digital infrastructure.

A vital support measure, based on the document, is for member states to ramp up foreign direct investment (FDI) and private capital mobilization for sustainable development, particularly directed to developing nations.

“We will promote sustained foreign direct investment in developing countries, in particular countries facing specific challenges, in accordance with the respective countries' investment priorities,” the document read.

“We will address regulatory obstacles and provide incentives, guarantees and insurance for investment in developing countries aligned with their sustainable development plans,” it stated.

“We will work with private sector entities to enhance their investment in developing countries,” it added.

As indicated under the Sevilla Commitment, multilateral development banks (MDBs) and financial institutions—on a collective basis—are tasked to at least double their support to developing countries by 2030. This is in the view that the lending capacity could potentially triple.

This support should be targeted to developing countries aiming to strengthen their domestic revenue mobilization and tax-to-gross domestic product (GDP) ratios.

With these ambitions in mind, the member states of the UN will put forward over 130 initiatives to accelerate the implementation of the Sevilla Commitment.

Based on the list on FFD4’s website, the Philippines will play a role as a pathfinder country under one of the initiatives, namely the Global Accelerator on Jobs and Social Protection for Just Transitions.

The program supports pathfinder countries to align national policies, close gaps, and channel investments to fuel job creation.

In joining the initiative, the Department of Labor and Employment (DOLE) said last year that it would help foster a job-rich recovery, extend social protection, and facilitate just transitions towards the country’s sustainable development goals.

“Investing in global solidarity is about building a world in which no one is left behind,” UNCTAD Secretary-General Rebeca Grynspan.

“To do this we need to think about development in an integrated way where trade, investment, finance and technology reinforce each other,” she added.

To deliver on the commitments, Grynspan said international financial systems must be updated to reflect current realities, easing the access for developing countries to fairer access and representation.

Only the United States (US) refused to sign the Sevilla Commitment.

Based on an Associated Press (AP) report, the US opted out of the document due to concerns such as the potential to triple the annual lending capacity of MDBs and the UN’s role in the global debt architecture.