NDB Seminars in the 9th Annual Meeting

The global economic landscape has undergone a fundamental transformation, marked by the emergence of new growth centres and the rise of the Emerging Markets and Developing Countries (EMDCs), while the member countries of the New Development Bank have been the vanguard of this process. However, profound challenges remain in the journey to a sustainable future. The retreat of multilateralism and the rewiring of globalization cast a shadow over future growth prospects of the EMDCs, as their development paths critically hinge on an open and multilateral global order. The lack of global cooperation in technology innovation is hindering their quest for industrialization, re-industrialization, and industrial upgrading. The EMDCs are increasingly vulnerable to severe climate disasters, necessitating a swift green transformation, yet the momentum of decarbonization in some developed countries is slowing. Despite frequent calls for supporting sustainable development in the EMDCs, concrete action is still lacking.

At the heart of these challenges is the lack of sufficient development financing for the EMDCs. Elevated interest rates of hard currencies and tightening global financing conditions have not only increased the debt burden for the EMDCs but also further restricted their access to affordable financing. The financing divide is exemplified by the implicit interest rate on EMDCs’ sovereign debt being twice as high as that of developed countries. This severely hampers the EMDCs from achieving the Sustainable Development Goals (SDGs), as high debt servicing costs are crowding out critical investment in areas such as environmental protection, health, education, and core infrastructure. Moreover, the increasingly fragmented global financial networks are incentivizing investors from advanced economies to reduce their exposure to the EMDCs. Against this backdrop, filling the widening development financing gaps, which have nearly doubled since the COVID-19 pandemic and are mostly faced by the EMDCs, has become tremendously challenging, especially when financial commitments from advanced economies remain largely unfulfilled.

In this context, the NDB Flagship Governors Seminar convened high-level government officials of NDB member countries, senior NDB management, global thought leaders, and private sector practitioners to discuss solutions towards unlocking financing for sustainable development in the EMDCs. It highlighted the joint action needed by the EMDCs to advance international financial architecture reforms and scale up financing for sustainability, discussed innovative ways to mobilize private investment, and proposed effective measures to enhance global development cooperation. It also featured NDB member countries’ best practices and visions on development policies, scalable and affordable development financing, and the cultivation of new industries, new technologies, and new engines for sustainable growth. Furthermore, it shed light on how the NDB could strengthen its role as a resource mobilizer and a cooperation platform for the sustainable development of the EMDCs.