Firstly, Financing for Development (FfD) is an essential assistance for the growth of nations and individuals. However, according to the General Assembly, there is a lacking of $1.5 trillion in funding for infrastructure investments is not only detrimental to businesses and governments, but also to society and generations following. Official Development Assistance (ODA) system didnt achieve its purpose of economic growth. Over time, ODA followed a more ethical path to reach the Sustainable Development Goals (SDGs) agenda started in 2015.
Secondly, according to Official development assistance as a percentage of gross national income, 5 among 28 organisations Organisation for Economic Co-operation and Development (OECD) countries aimed the Pearson Commissions target in which they must give 0.7% of their Gross National Product (GNP). The DAC started the sophistication of its ODA system to assure its effectiveness in 2012. The ODA figures started to implement the Grant Equivalent method, taking over the Flow Basis method in April of 2019. It incentivized DAC Member States to take grants and concessional loans helping LDCs and developing countries to aim a great standard of living. Under this new method, the bigger the loan or grant is, it will increase the ODAs value.
However, we can observe the Flow Basis method Private Sector Instruments (PSIs) and Debt Relief. Also, Inter-Agency Task Force on Financing for Development (IATF) follows the developments on FfD. As a solution to the lack of funding in the private sector, Austria believes that the FSDO on behalf of the DESA, with the help of the World Bank Group, must provide and create a platform where private corporations can register the companies for an international recognition. This will enable companies to cooperate, with entrepreneurs in the same industry or even across other industries, on similar problems located in other regions, allowing the world to move forward on SDGs 17, 9 and 8.
In the same platform, investors, governments, local citizens from other nations have the opportunity to invest in startup of a company without currency exchange fees to allow a mutual cooperation between markets and an increased flow of capital to companies located worldwide. The database managed by the World Bank Group and other entities will allow a transparent and honest path to see with actual statistics if we will achieve all SDGs by 2030. Nonetheless, through this type of platform, company leaders and board of management can learn from other experts in the same field. Business and entrepreneurship are the only way a nation will see innovation and better standards of living.
Secondly, as a solution to the issue of debt, Austria encourages to extend the Multilateral Debt Relief Initiative (MDRI). This will help least developed countries (LDCs) and low income countries to aim the 0,7% goal of GNP. For that reason, the World Bank and the International Monetary Fund assistance should be reinforced to assure the efficiency of MDRI. Besides, we should restructure Member States conditions of qualification in the MDRI to help other Member States gain from this debt relief. In order to achieve this purpose, Member States must adjust their policies to be eligible in the MDRI.