Inputs to the Outcome Document

This policy brief explores the challenges of trade fragmentation and inequality in the global economy, focusing on the impact on low- and middle-income countries. It outlines policy solutions to reduce trade costs, invest in infrastructure, promote economic diversification, and strengthen global trade governance. Specific recommendations for the Fourth Conference on Financing for Development (FFD4) include financing for trade infrastructure, bridging the digital divide, improving access to finance, and reducing trade barriers to foster inclusive and sustainable development.

Scaling up public and private investments in sustainable industrialization is a key to closing the SDG financing gap in developing countries. This UNIDO policy brief discusses how modern SDG-oriented industrial policies, complemented by innovative financing mechanisms and capacity-building, can play an important role in directing financing towards strategic investments and sectors, thus accelerating progress towards the SDGs.

This policy brief addresses the $1.5 trillion global trade finance gap, which disproportionately impacts small and medium-sized enterprises (SMEs) in developing economies. It outlines key challenges, including high rejection rates and compliance costs, and proposes targeted solutions such as expanding risk-sharing frameworks, strengthening local financial institutions, and promoting climate-friendly trade finance. The brief emphasizes the need for multilateral cooperation to close the gap, promote inclusive growth, and support the transition to a low-carbon global economy.