Illustration: Liu Rui/GT

In his remarks to the ministerial segment of the high-level political forum on sustainable development on Monday, UN Secretary-General Antonio Guterres emphasized the need to reform the unfair global financial system, which no longer represents today's world or the challenges faced by developing countries, according to a release on the website of the UN. 

We must ensure a reform for developing countries to have a stronger voice and greater participation to help advance the Sustainable Development Goals on the ground, Guterres noted. Against the backdrop of significant funding challenges for global development, his remarks offer a noteworthy path forward.

In his speech, Guterres mentioned the fourth International Financing for Development Conference, which took place from June 30 to July 3 in Sevilla, Spain. Guterres stated that during the forum, a once-in-a-decade summit, countries agreed on a new vision for global finance - one that expands fiscal space, lowers the cost of capital, and ensures developing countries have a stronger voice and participation in the organizations that shape their future.

The global economy is experiencing sluggish growth. Amid rising uncertainty, developing countries are particularly vulnerable to economic shocks. High levels of debt and financing costs exacerbate the difficulty for these countries in securing sustainable development funds.

Global sustainable development is facing financing challenges. On the one hand, there is a substantial funding gap. According to a UN report released in 2024, the annual global financing shortfall is estimated to be $4.2 trillion. On the other hand, the adoption of unilateralism and protectionism by certain countries is undermining the free flow of global factors of production. The continuous decline in official development assistance exacerbates a dire financing situation.

All of this highlights the urgency of addressing international financing issues. In the current international economic and financial landscape, the voices and representation of developing countries urgently need to be strengthened. Multilateral mechanisms and cooperation platforms should be leveraged to help developing countries gain more adequate and equitable access to financing, thereby providing them with greater development opportunities. This will not only promote more inclusive and balanced global economic growth but also inject fresh vitality and momentum into the world economy.

Addressing the opening session of the fourth International Financing for Development Conference, Guterres called for the reform the global financial architecture, with major shareholders playing their part, so that it empowers every country, according to a release on the UN website on June 30.

The voice of developing countries urgently needs to be enhanced. For example, according to Reuters, the 54 African countries combined hold only 6.5 percent of the voting power in the IMF, far below their share of the global population (18 percent).

Earlier this month, finance ministers of the BRICS group of developing nations agreed to back a shared proposal at an IMF review meeting coming up in December, which will discuss changes to a quota system that defines contributions and voting rights, Reuters reported.

Addressing the current global financing challenges requires a concerted effort by the international community. China has always linked its own development with global progress, contributing its strength to alleviate financing difficulties and development challenges. From increasing foreign aid to actively participating in multilateral development financing, and promoting the Belt and Road Initiative, China has been providing continuous financial support to developing countries within its capacity. Moreover, China continues to open its markets, aiding these countries in enhancing their self-development capabilities.

In the current climate of rising international debt, tightening trade relations, and increasing economic uncertainty, developing countries should receive more assistance and support. This would be beneficial for promoting global economic stability and achieving sustainable development. Such an endeavor requires broader international cooperation. China has always been a contributor to global sustainable development and hopes that more countries will make extensive efforts toward this goal.

The author is a reporter with the Global Times. bizopinion@globaltimes.com.cn