President William Ruto called for bold actions from world leaders in reforming the global financial architecture to meet the SDGs by 2030.
Speaking in New York at the Summit of the Future, Ruto said the forthcoming 4th International Conference on Financing for Development, FfD, is very important.
It is probably the last opportunity to readjust development efforts, close the financing gaps, and restore faith in multilateralism.
Ruto said what is expected of the current global system does not meet the challenge of the complex situation brought forward by the global economic crisis, itself compounded by the ongoing climate emergency.
“The prevailing multilateral institutional architecture is dysfunctional or at least highly ineffective,” he said. “It cannot be relied upon to provide the solutions the world urgently needs.”
He drew on evidence from the 2024 Inter-Agency Task Force on Financing for Development, which portends a forthcoming crisis because current financial systems cannot support both SDGs and climate action.
Ruto is part of the SDG Stimulus Leaders Group. He said he was eager to do his part in mobilizing the financial mechanisms to drive global implementation of the Goals.
Ruto also noted that there was a growing trend where countries were turning to innovative indigenous solutions to attempt solving some of the pressing problems.
He insisted that the reforms required to remove structural and financial impediments, which hit developing countries disproportionately, include soaring debt, unfair credit ratings, and uneven interest rates.
“Against the deteriorating global economic conditions worsened by an unrelenting climate crisis, these weaknesses limit opportunities, especially in low-income countries,” Ruto said.
He warned that one out of every three developing countries risks defaulting on their debt obligations.
Without urgent reforms, he warned of a “sustainable development divide” that could leave millions in chronic vulnerability.
