Ræða utanríkisráðherra í hringborðsumræðu um þróunarsamvinnu á fjórðu ráðstefnu um fjármögnun þróunar (FfD4) í Sevilla

Multistakeholder Roundtable on “Revitalizing international development cooperation”

Excellencies,

It’s a pleasure to be with you here today and to participate in this distinguished panel.

We have made genuine progress on many key issues in the outcome document – and we should all be proud of what we have achieved.

Moving forward beyond Sevilla, I would like to highlight a few key changes that need to take place if we are to revitalize international development cooperation.

First is the importance of using ODA strategically to catalyze private capital to a greater extent than we do today. Mobilizing private capital is a key part of the puzzle to deliver on sustainable economic growth, poverty eradication and job creation. In recent years, developing countries have become far better integrated into the global financial system – this is a positive trend that should continue. Moving forward, we need to strengthen the role of Multilateral Development Banks (MDBs) and cooperation between MDBs must be enhanced.

Second, we need to increase our focus on strengthening domestic resource mobilization (DRM) accompanied with efforts to enhance good governance and tackle corruption and illicit financial flows. Transparent and robust systems of domestic resource mobilization instil trust in the economy and strengthen the social contract. ODA must be strategically used to exact this change. Currently, less than 1% of total ODA is directed to enhancing DRM. The outcome document includes a commitment to double these efforts which is an important deliverable.

Third, I want to highlight that we did not manage to make progress in all areas of the outcome document. Language on gender equality and climate action should have been much stronger. It’s vital that the creative potential of the entire population is leveraged to foster sustainable growth. Policies that enhance women’s economic and political participation and leadership will be key to realizing economic gains. Here, I speak from Iceland’s own experience.

Investing in sexual health and reproductive rights is one of the most impactful ways to unlock women’s potential and address their health gap. Women currently spend 25 per cent more of their lives in poor health compared to men – this is unacceptable. Investing in SRHR not only empowers women but also fuels economic growth. According to UNFPA, every dollar invested in family planning returns more than eight dollars in benefits for families and societies. This is financial leveraging at its best.

Excellencies,

Finally, in order to move the needle on all of these issues, we must tackle the problem of aid fragmentation which has only gotten worse in recent years. We must take action to counter this trend. Fewer, larger and better coordinated contributions are essential.

We need to move beyond the outdated narrative of “donors” and “beneficiaries”, and press for meaningful political and economic engagement, as equal partners.

Partner country governments must be in the driver’s seat with development initiatives aligned with national development plans and strategies.

In Iceland’s bilateral development cooperation, we work directly with district authorities according to their development plans and prioritization. We place strong emphasis on local ownership and use of local systems. We know from experience that locally led development is not only more likely to succeed, it´s also much more cost-effective.

Iceland has endorsed initiatives in the Sevilla Platform for Action on the issues I have highlighted, and we remain a dedicated and ambitious partner to ensure their implementation.

Thank you.