As we approach the final years of the 2030 Agenda, the global community faces unprecedented challenges in achieving Sustainable Development Goals (SDGs). Developing countries have historically struggled to sustainably and equitably fund the SDGs, while a significant erosion of the social contract has left citizens distrustful and disempowered as elites capture the benefits of growth and inequalities soar across gender, climate, health, and income dimensions.
The financing landscape has become increasingly precarious. Developing countries face mounting debt servicing costs, projected to surge by over 50% from $26 billion in 2022 to $40 billion by 2025. A succession of exogenous shocks since COVID-19 has made debt servicing nearly impossible, severely constraining fiscal space. In response, many governments have attempted to address fiscal sustainability through measures that further entrench inequalities, triggering social unrest and political instability. With only 17% of assessable SDG targets on track, achieving sustainable development requires a fundamental transformation in approach.
For countries to succeed, they must simultaneously pursue three interconnected goals: sustainable public finance, equitable public finance, and accountable public finance. Only by achieving all three can they rebuild trust between citizens and the state. Yet current challenges are multifaceted: while the global financial architecture struggles to align with the SDGs, governments work in silos, separating tax and revenue policies from budgeting decisions. This fragmentation hampers effective responses to cross-cutting issues like climate change and inequality. Despite global wealth of $460 trillion, mobilizing even 1% to close the $4 trillion annual SDG financing gap proves challenging. Meanwhile, fossil fuel subsidies have reached $1.3 trillion, directly contradicting climate objectives.
The need for collaboration has never been more critical. The 2025 Dialogue on Public Finance and the SDGs offers a unique opportunity to break down silos and forge new partnerships. Building on successful previous events - including the 2023 Dialogue on Tax and the SDGs (370 participants from 61 countries), the Public Finance for SDG conference (2023), and the Global Dialogue on Public Finance and Tax for Gender Equality (2024) - this platform will examine how integrated public finance approaches can drive development outcomes.
Looking ahead, several pivotal global discussions present opportunities for transformative action, including the 2025 Climate Change CoP in Brazil and the fourth International Conference on Financing for Development in Spain. By bringing together diverse stakeholders and examining the interconnections between public finance and development outcomes, we can work toward more effective, equitable, and sustainable financial systems that serve all citizens. Learn more about it.