BRIDGETOWN, Barbados, CMC—The Fourth International Conference on Financing for Development (FfD4) could catalyze coordinated action to close the financing gap and set the stage for an STI-driven transformation in the world’s poorest countries.
The stark reality is that just over 250 weeks remain before the end of the decade, marking the endgame for achieving the Sustainable Development Goals (SDGs). With less than a fifth of the Goals on track, the Least Developed Countries (LDCs), or the world’s poorest countries, urgently need bold, innovative financing for science, technology, and innovation (STI) to re-set their development trajectories and salvage the 2030 Agenda.
The Spanish city of Seville will host the FfD4 in June/July this year. The last such summit was held in Addis Ababa, Ethiopia, in 2015, the same year the SDGs were agreed upon. Since then, the development financing gap has widened, as has the divide between the richest and poorest countries worldwide.
The financing gap—the difference between the amount of money required to achieve the SDGs and the resources that have been committed—is now estimated at US$4.2 trillion annually.
The silver lining could be the world’s most vulnerable.
Notably, this past decade has seen astonishingly rapid developments in STI, spanning biotech, artificial intelligence, machine learning, green technologies, and satellite connectivity. These breakthroughs, primarily driven by digital technologies, have created immense wealth for a few. According to Oxfam, five individuals will reach trillionaire status before the close of 2029, while the number of people living in poverty has remained stubbornly high since 1990.
Yet, for the 700 million people in the margins, this progress has not translated into better opportunities. For them, these developments in STI could be genuinely transformational. There’s no better time than now to close the inequality gap and harness these assets for the benefit of all.
“There is nothing more powerful than an idea whose time has come” -Victor Hugo.
The concept of a dedicated global fund for STI has never been fully operationalized at scale, but the idea is not new.
The United Nations, UNESCO, the World Bank, the African Union, the G77, and China have all proposed the idea of an STI funding pool, suggesting growing momentum and backing for such a mechanism. However, pushing the envelope and making the case for such a fund exclusively for the LDCs is essential. June/July’s high-level summit on financing for development could provide the coordination and impetus it needs to get started.
With the key global players in attendance, this summit could be a pivotal moment to bring the idea of an STI fund to life. The 2024 Pact for the Future and its associated Global Digital Compact, along with the Doha Programme of Action, offer the policy foundation and moral imperative for such an initiative.
What the world’s 44 least developed countries (LDCs) need.
A global fund for STI should focus on financing three priorities: boosting the capacity of institutions in LDCs, closing the skills gap, and creating an enabling environment for STI to flourish.
Economic resilience and structural change depend upon strong, productive capacity driven by equally strong national institutions that can effectively implement pro-growth strategies and technology. Tech transfer and skills building will only support development if a country’s institutions can use the necessary technologies.
This aligns with the imperative to upskill and reskill workers in LDCs. With just under half of their citizens having no access to electricity and only a third able to access the internet, countries must be supported with vital, enabling development infrastructure. Additionally, a grant financing facility to bolster centers of excellence in the Global South would allow countries to effect game-changing outcomes in critical areas such as climate change, agriculture, and business development.
Why a global STI fund is a wise investment
Investing in the tech capacities of LDCs is not only a moral obligation but makes good business sense. High levels of inequality limit access to education and skills, undermining social mobility and economic growth in the world’s 44 LDCs. Rapid economic growth and development in these countries – with their massive market of over one billion people – represents an equally enormous opportunity for countries in the global South and developed countries.
Investing in a dedicated STI fund would pave the way for long-term sustainable development in LDCs, providing opportunities for collaboration, harnessing the talent of their youthful populations, and opening up new markets.
The Financing for Development Summit as a catalyst for coordinated action
This decade began with a global pandemic that wrought havoc on economies worldwide, particularly the most vulnerable. Those who didn’t have the buffers to bounce back continue to struggle to meet basic development objectives, and as a result, the SDG promises for 2015 remain elusive.
The 4th International Conference on Financing for Development presents a unique opportunity to focus on STI as an essential driver of development. The summit could catalyze coordinated action to close the financing gap and set the stage for an STI-driven transformation in the world’s poorest countries.
As we approach the final stretch of the 2030 Agenda, the need for solutions has never been more apparent. Investing in a global STI fund for LDCs is not just about making a big difference for the people in the poorest and most vulnerable countries. It also makes good business sense.
**Deodat Maharaj, the former head of the Barbados-based Caribbean Export Development Agency, is the managing director of United Nations Technology Bank for the Least Developed Countries. He can be reached at: deodat.maharaj@un.org
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