Inputs to the Outcome Document

This brief presents evidence on coverage and financing gaps for universal social protection (USP), offering actionable recommendations for FfD4. The ILO estimates that to ensure at least a social protection floor, low- and middle-income countries require an additional investment of US$ 1.4 trillion (3.3 per cent of the aggregate GDP) of these countries. To close the financing gap countries must increase investment in social protection, raising effective coverage by 2 percentage points annually (SDG indicator 1.3.1). At the international level, debt relief should move at a faster pace and access to international emergency financing must be enhanced to enable regular investment in USP in a climate-volatile world and avoid repeated rounds of austerity.

Investment is necessary but not sufficient for achieving inclusive economic growth and decent work. The ILO MNE Declaration provides an investment framework for coherent and synergistic policies concerning job creation, enterprise development, formalization, skills development and protection of workers’ rights. Consultation with social partners can ensure that decent work is prioritized while also enabling enterprises to grow. And dialogue between host and home countries could lead to better alignment of policies and ODA to support investment facilitation for development.

Corruption is a cross-cutting issue, impacting all aspects of the financing for development agenda. Neglecting to adequately address corruption could jeopardize the entire process. By including and investing in proven anti-corruption measures and strengthening international cooperation in the recovery of proceeds of corruption, we can ensure that financial resources are effectively mobilized and safeguarded for development. Corruption is a cross-cutting issue, impacting all aspects of the financing for development agenda. Neglecting to adequately address corruption could jeopardize the entire process. By including and investing in proven anti-corruption measures and strengthening international cooperation in the recovery of proceeds of corruption, we can ensure that financial resources are effectively mobilized and safeguarded for development.

This policy brief emphasizes the need for financing inclusive structural transformation to foster economic growth, create decent jobs, and ensure sustainable development. Developing countries face challenges due to limited financial resources, premature deindustrialization, and a shift towards low-productivity sectors. The brief recommends strengthening national public development banks, forming public-private alliances, and adopting tailored macroeconomic frameworks. These efforts, combined with social partner involvement and multilateral cooperation, are crucial to overcoming financing barriers and supporting long-term, inclusive development.

The brief highlights the need for Member States to put gender equality at the forefront of macroeconomic and fiscal policies. The brief argues while advanced economies have implemented policies to accelerate economic recovery, developing nations lack adequate financing to do the same, leaving women in precarious positions. Today, many countries are implementing austerity measures that limit government spending on essential services, further harming women's economic security. The brief also highlights that high debt levels in developing countries continue to divert resources away from social programs and initiatives that promote gender equality, hindering progress and potentially reversing gains. Overall, the brief advocates for a comprehensive approach to financing gender equality, recognizing the potential of various policy levers and the need for gender-responsive policymaking, including accelerating the reforms of the international financial architecture.

Addressing both social and environmental objectives is essential to mitigate risks and seize opportunities related to the low-carbon transition. A just transition requires supportive financial flows and enabling financial systems. Member States can support mobilization of financial resources for a just transition by leveraging public development banks, incentivizing the use of financing instruments that attract private capital, developing comprehensive sustainable finance frameworks that consider social and environmental objectives, and developing capacities within the financial system.

Scaling up the Global Accelerator on Jobs and Social Protection for Just Transitions