Statement: FfD Interactive Debate on Development Cooperation

Statement delivered by Mr. Oddur Ingi Nyborg StefAnsson,
Specialist, Ministry for Foreign Affairs of Iceland 
FFD 4th PrepCom: Interactive debate on development cooperation
1 May, 2025

Thank you Co-facilitator, 

We must recognize that we stand at a critical juncture as total ODA looks set to decrease significantly this year. For the LDC’s, the picture of stagnating or even decreasing external support has already been the case for several years. 

In the context of the ODA squeeze, the urgency of making sure that remaining ODA has a catalyzing effect in terms of financing is more pronounced than ever. Moreover, more efficient and purposeful coordination is required to reduce the level of fragmentation in international development cooperation and put national governments in the driver’s seat.

We need innovative ways to address financing challenges to be able to move the needle on meeting development needs and the ambition of the Financing for Development process. However, innovative financing solutions that are conducive to mobilizing private capital require sufficient grant funding to be effective. Similarly, enhancing DRM and tax systems requires investment which will realistically rely on ODA, and must be prioritized.

Clearly, the reduction of ODA does not reflect a decreasing demand for ODA – in fact, demand for ODA is higher than ever.

With these dynamics at play, concessional financing by MDBs that are able to stretch ODA by leveraging financing from financial markets for development has a particularly important role to play. Also, the horizontal nature of MDBs enable them to work across sectors and thematic areas that allow for the holistic approaches required to solve development challenges. In this regard, ensuring progress on gender equality and human rights is pivotal as economic potential is not fully realized unless the entire population is empowered.

In closing, on a positive note, we want to underline the inherently positive effect that the FFD process has had on coordination on international development cooperation by bringing together UN, Bretton Woods Institutions, MDBs, CSOs and member states. Dialogue and transparency is key to a successful outcome in Sevilla.
 
Thank you.