Ávarp utanríkisráðherra á aðalfundi fjórðu ráðstefnu um fjármögnum þróunar í Sevilla (FfD4)

President,

Excellencies,

As we gather here in Sevilla, progress towards the Sustainable Development Goals is severely off track. At the same time, we stand at a critical juncture as Official Development Assistance is decreasing significantly this year and is unlikely to bounce back any time soon.

If we are to move the needle on meeting development needs and enable climate action it is urgent that we find new ways of addressing financing challenges.

Excellencies,

The reduction of Official Development Assistance does not reflect a decreasing demand. In fact, demand has never been higher, which underscores the urgency of enhancing quality and catalytic effect of ODA. Here, donor countries must shoulder their share of responsibility in reducing aid fragmentation and build partnerships where partner country governments sit in the driver’s seat.

Allow me to highlight three key points.

First, I want to emphasise gender equality and women’s empowerment which play a key role in progressing the SDGs. Here I speak from experience, as Iceland’s strong focus on gender equality as a policy priority played a significant part in Iceland’s journey from being one of the poorest countries in Europe to becoming a prosperous country and one of the wealthiest in the region. At the same time, I wish to emphasize that placing gender equality at the forefront requires political will, hard work and collective action. Likewise, it requires dedicated financing where financial resources are channelled to programmes that tackle inequalities, leave no one behind and are aimed at closing stubborn gender gaps. Here, I want to underscore the urgency of investing in sexual and reproductive health and rights which can unlock women’s potential and make sure their children are fed, and that they go to school.

Second, it’s vital that every dollar invested in ODA leverages additional financing from other sources. Multilateral development banks are particularly well-suited to develop and scale the innovative solutions required to meet the ambition of the Financing for Development process. Likewise, we need to build on existing solutions to attract more private capital to developing countries and emerging markets. The solutions that we have today are not static entities, and we must all work together to make them more fit for purpose. At the same time, we must also acknowledge that continued grant funding is still essential to mobilize investments in developing countries – and this is where donor countries play a leading role.

Third, creating an enabling environment in developing countries is of utmost importance. This involves many factors, such as a predictable regulatory environment that is attractive to investors, robust systems of domestic resource mobilization that instil trust and strengthen the social contract, strong and credible anti-corruption measures, and responsible debt management.

We must also continue to combat illicit financial flows, that are estimated to be worth tens of billions of dollars every year in Africa alone. It is vital that untaxed income is brought into developing country economies from offshore, tax havens, and intermediary jurisdictions.

Excellencies,

Genuine progress on many key issues has been made in the outcome document, which we should all be proud of. Importantly, the FfD process has shown that multilateralism can still deliver, even in these turbulent times.

The numerous initiatives in the Sevilla Platform for Action will translate the text into action for tangible and lasting impact. We are pleased to announce that Iceland is endorsing five initiatives under the Sevilla Platform for Action on gender equality and women’s empowerment, the care economy, private capital mobilization and aid effectiveness.

Ladies and Gentlemen,

Fundamentally, development cooperation is not about charity, it is about strategic investment in our common prosperity, well-being and the health of our planet. The Compromiso de Sevilla encapsulates our joint efforts and commitment. The road has been rocky, but it is our collective responsibility to make sure it leads to meaningful development outcomes.

I thank you.