Inputs to the Outcome Document

Voting right imbalances persist in international financial institutions with respect to the population and size of the economy of their member states. Aiming for greater influence on financing policy decisions impacting developing countries, Asia-Pacific member states should continue on institutional reform discussions. However, strengthening of regional financial institutions in parallel as a complementary approach.

Global FDI flows declined since 2015, hindering progress towards the SDGs. FfD4 should seek to leverage partnerships between investment stakeholders, enhance countries’ readiness to attract investment in SDG, and promote home-country initiatives to channel investment. SWFs and institutional investors possess substantial capital that can be directed toward infrastructure and SDG, while more de-risking initiatives need to be developed. Systematic efforts to advance sustainability standards and address greenwashing is essential to grow sustainable finance.

This brief focuses on the importance of strengthening financial regulations that can accelerate private financing towards the Sustainable Development Goals in the Asia-Pacific region. The brief puts forward actions to deepen banking and capital markets in Asia and the Pacific, as well as outlines a new approach that combines concessional and private finance in the least developed countries in Asia and the Pacific.

The momentum to measure South-South cooperation is growing rapidly, spurred by the endorsement of SDG indicator 17.3.1 and the voluntary ‘Framework to Measure South-South Cooperation’. Developed by the global South, the Framework aims to provide data on South-South cooperation to enable first-ever globally inclusive information on international development support by reflecting the realities of the global South. To unlock its full potential, significant support, technical training, harmonized tools, and targeted assistance, is needed for countries.

Financing the Pathway Towards Universal Health Coverage (UHC): Improving Health Sector Priority Setting

Sovereign Debt Workout Mechanisms: The G20 Common Framework and Beyond

Asia-Pacific experience suggests a central role of rationalized tax structure, strengthened tax administration, and reduced wasteful tax exemptions in episodes of swift tax revenue enhancement. Nevertheless, to achieve greater and sustained results in the longer term, broader socioeconomic progress and improvements in public governance are equally indispensable. Meanwhile, better exploration of tax potentials of direct income and wealth taxes and of the region’s booming real estate markets will be key for further public revenue enhancement.

Better Data on Trade in Services for Effective FFD Strategies

This brief argues that taxation policies on tobacco, alcohol, and sugary drinks present a timely and effective strategy for advancing sustainable development while improving public health and well-being. Health taxes not only generate government revenue through higher tax rates but also promote healthier behaviors, leading to improved health outcomes and productivity gains that benefit society as a whole. Over the next five years, increases in tobacco, alcohol, and SSB taxes could generate an additional $3.7 trillion USD in government revenues globally—an average of $740 billion USD per year, equivalent to 12% of global health budgets and 0.75% of global Gross Domestic Product (GDP).

The policy brief emphasizes the need for a long-term perspective and a stable investment environment for CETM projects, highlighting the importance of clear government regulations. It advocates expanding the capital base in developing countries through innovative financing mechanisms and lowering borrowing costs via international cooperation. The policy brief also underscores the importance of a holistic approach to financing, promoting value addition and diversification throughout the CETM value chain.

This policy brief highlights the challenges faced by Asia-Pacific developing economies, in particular LDCs, in tapping the potential of digital trade opportunities to finance sustainable development and discusses some potential policy solutions. It focuses on promoting domestic resource mobilization, fostering international cooperation, and supporting LDCs to participate in digital trade. The key recommendations include closing the digital divide, establishing coordinated digital tax frameworks, strengthening regulatory cooperation, and building digital-trade capacity for MSMEs and marginalized groups.

Multilateral Credit: Filling in the Financial Gap?

Financing for Sustainable Progress to Universal Health Coverage

Public debt distress has three distinct underlying causes which should be evaluated and addressed differently. Similarly, traditional bilateral, non-traditional bilateral and commercial creditors have shared but differentiated responsibilities in sovereign debt restructuring. Proper resolution of sovereign debt distress should ideally be guided by these two principles/realities, while continuing with pragmatic second-best approaches. Debtor countries should also hold their side of the bargain by ensuring accountable and productive use of borrowed funds and effective public debt management.

Trade is vital for economic growth, but protectionism and unilateralism threaten the global trading system, limiting developing countries' participation. These nations face challenges in competing with developed economies' subsidies for green and digital transitions and struggle to secure financing for infrastructure. To enhance their role in global value chains, developing countries require substantial investment in transportation, energy, and digital infrastructure. A specialized infrastructure fund, supported by multilateral development banks and private capital, is crucial to closing this financing gap.

This brief offers a global overview of health spending and highlights the critical role of health expenditure data in shaping policies to achieve the SDG health targets. It calls on countries and global partners to strengthen health expenditure tracking via health accounts to improve policymaking, enhance transparency, and promote accountability.