Q&A: Towards the 4th Financing for Development Conference 2025

Question 1: What led to the creation of the Financing for Development (FfD) process?

Answer: In the late 1990s and early 2000s, many countries grew frustrated with the failures of structural adjustment programs (SAPs) imposed by the IMF and World Bank. The 1997 Asian Financial Crisis exposed serious flaws in global financial governance, such as risks from unregulated capital flows, debt crises, and unfair trade rules. Global South countries demanded a more democratic approach, leading to the first FfD Conference in Monterrey, Mexico, in 2002.

Question 2: What have been the key milestones in the history of FfD Conferences?

Answer:

• Monterrey (2002): The first UN summit-level meeting to recognize financing for development as a global issue.

• Doha (2008): Illicit financial flows (IFFs) and tax justice were explicitly put on the UN agenda for the first time, with pushes for a UN tax body.

• Addis Ababa (2015): Created the annual FfD follow-up forums but missed the chance to establish an intergovernmental tax body. It also legitimized increased private finance via blended finance and public-private partnerships.

Question 3: What is the core purpose of the FfD process?

Answer: The FfD process aims to:

• Create policy and fiscal space for Global South countries to finance sustainable development.

• Affirm the UN’s central role in global economic and financial governance.

• Remove systemic barriers to socio-economic transformation and redesign global governance.

It is not a pledging or fundraising process nor solely about financing SDG implementation.

Question 4: Why is the 4th FfD Conference in Sevilla (2025) so important?

Answer: Sevilla 2025 is a historic opportunity to:

• Push for a global financial system reform that benefits all countries, not just a few.

• Strengthen the UN’s role in global economic governance with inclusive participation at all levels.

Question 5: What are the key issues on the agenda for Sevilla 2025?

Answer:

• UN Framework Convention on Debt: A legally binding global mechanism for fair, transparent, and timely debt resolution, shifting governance from creditor-led forums to the UN. Learn more

• UN Framework Convention on International Development Cooperation (IDC): To establish enforceable commitments on development finance and address long-standing debt owed to the Global South. Learn more

• Multilateral Development Banks (MDBs) Reform: Reform MDBs to better serve all nations.

• Credit Rating Agency Reform: Propose a UN multilateral credit rating agency.

• Trade and Investment Rules: Move discussions to UN-centered, development-focused frameworks, including addressing unilateral coercive measures raised by the G77.

• Technology Transfer & Digital Economy: Create a global system to prevent monopolies and ensure equitable access to innovation.

Question 6: Who makes those decisions and what influences them?

Answer: Decisions are made by UN Member States — that means government representatives from almost every country in the world. Typically, finance ministers, development ministers, and foreign affairs officials lead negotiations. However, powerful countries, and countries negotiating in blocs (like the G77+China, the European Union, and the U.S.) often have important influence.

Their decisions are shaped by a mix of factors: economic interests, political agendas, pressure from citizens and civil society organizations (CSOs), lobbying by corporations and financial institutions, and commitments they’ve already made under the Sustainable Development Goals (SDGs), the Paris Agreement, and other global frameworks.

Question 7: What is the key moment to influence those decision-makers?

Answer: The key moment is right now — in the lead-up to and during the Conference itself. The early stages, when governments are drafting their negotiating positions and submitting proposals, are when they are still open to new ideas and pressure.

Civil society, activists, and ordinary people have the most influence when they organize together before and during the conference — through advocacy campaigns, public pressure, direct engagement with delegations, and visible actions that show that the world is watching.

Question 8: What is the CS FfD Mechanism and how can civil society organizations, trade unions, and social justice movements get involved?

Answer: The Civil Society FfD Mechanism is an open platform of 400+ organizations from around the world. Any public-benefit civil society organization is welcome to join.
The Mechanism is organized around 9 thematic workstreams, where CSOs collaborate on key FfD and related global economic issues. Learn more about the Mechanism here.

Join us in shaping a more just and democratic global financial system!