Seville: Prime Minister KP Sharma Oli has highlighted the predicament of Least Developed Countries (LDCs) being caught in a shrinking fiscal space due to unsustainable debt levels. He lamented that more resources are being allocated to debt repayments than to essential sectors such as healthcare and education.
According to National News Agency Nepal, Prime Minister Oli, speaking as the Leader of the Nepali Delegation at the Fourth International Conference on Financing for Development (FfD4) in Seville, Spain, emphasized the human aspect of the fiscal crisis. He pointed out the disproportionate impact of climate injustice on these regions, where more is spent on recovery efforts than on preventive measures. He questioned whether this aligns with the promised climate justice.
During his address, Prime Minister Oli stressed that the global issue is not a lack of funds but a lack of political will. He noted that continuous crises, conflicts, and climate shocks have undone years of progress and hindered the achievement of Sustainable Development Goals (SDGs). He expressed concern over the reduction in aid and support at a time when it is most needed.
Prime Minister Oli expressed hope in the Fourth International Conference on Financing for Development, referring to the Compromiso de Sevilla adopted on Monday as a pivotal moment. This commitment aims to prioritize the most vulnerable populations in global development efforts and underscores the urgent need to address the financing gap.
He acknowledged the recognition of the Doha Programme of Action and its emphasis on full implementation. As co-facilitators from LDCs, Nepal and Zambia have worked to highlight LDC issues, and he was pleased that the outcome document addressed the needs of LDCs both before and after graduation.
Prime Minister Oli emphasized the responsibility to translate these commitments into tangible actions. He urged development partners to honor the Sevilla Commitment by strengthening domestic resource mobilization, enhancing private investment, increasing grants and Official Development Assistance (ODA) for national programs, and expanding LDCs’ productive capacities to unlock their trading potential.
He expressed confidence that the Sevilla Commitment provides a roadmap for fulfilling unmet promises and achieving a fairer, prosperous, and sustainable future. With the right financing, investments in human capital, poverty alleviation, capacity building, and lasting opportunities can be realized through science, technology, and innovation.