The Holy See’s Permanent Observer to the United Nations in New York has called on the international community to renew global cooperation, take bold actions, and secure funding to support development priorities in countries in “special situations.”
“Debt plays an important role in development financing. Indeed, for many developing countries, debt has become an unsustainable burden that hinders their development… My delegation considers that a significant shift in the approach to debt is necessary to promote integral human development, social inclusion, and equity,” said Archbishop Gabriele Caccia.
He was speaking at the general debate for the April 22–25 United Nations Economic and Social Council (ECOSOC) Forum on “Financing for Development,” advocating for debt forgiveness and restructuring as useful tools “to offer concrete solutions to address the many challenges developing countries face regarding financing for development.”
The 2024 ECOSOC Financing for Development Forum is a response to the urgent call from the 2024 Financing for Sustainable Development Report to bridge the $4.2 trillion financing gap and overhaul the global financial system to meet the Sustainable Development Goals (SDGs). As an annual intergovernmental platform, the Forum accelerates SDG progress by evaluating financing for development outcomes.
The forum will lay the groundwork for the Fourth International Conference on Financing for Development set for Spain in 2025. It will address key issues including the severe debt crisis, taxation, international trade, and enhancing private sector investment in developing countries.
“The Holy See views the Fourth International Conference on Financing for Development as an opportunity for renewing global cooperation and commitment to bold action and respond to the needs of countries in special situations, ensuring the provision and mobilization of financing to address their priorities for development, ” said Archbishop Caccia.
Call for significant debt relief
Archbishop Caccia described the conference to be held next year in Spain as an “undoubtedly pivotal moment” in the journey towards the realization of the 2030 Agenda, noting it “will take place against a backdrop of global challenges,” including significant backsliding on progress towards the Sustainable Development Goals. The success of the encounter, he stressed, “will be gauged by its ability to offer concrete solutions to address the many challenges developing countries face regarding financing for development.”
The Vatican envoy to the United Nations also highlighted a concerning statistic: “four in ten of the global population live in countries where the government spends more on interest payments than on education or health.” He argued that such a scenario is not compatible with sustainable development and advocated for a “significant shift” in how debt is handled.
The Holy See, he added, sees the potential for transformative change when bold ideas merge with political will and multilateral cooperation. Archbishop Caccia explained that “through debt forgiveness and debt restructuring,” developing countries can be freed from the chains of unsustainable debt, thus allowing them to invest more in healthcare, education, job creation, and social protection.
Archbishop Caccia echoed Pope Francis’ call for significant debt relief, wishing that “all nations be put in a position to meet the greatest needs of the moment through the reduction, if not the forgiveness, of the debt burdening the balance sheets of the poorest nations .”
