On 28 October 2024, Erica Levenson spoke on behalf of Regions Refocus and the Civil Society Financing for Development (FfD) mechanism at an intersessional multistakeholder hearing in preparation for the Fourth International Conference on Financing for Development (FfD4).
Held at the United Nations Headquarters in New York, civil society representatives and Member States gathered to exchange views on various FfD thematic areas in advance of the Elements paper being published. Drafted by the Co-Facilitators of FfD4 (Mexico, Nepal, Norway, and Zambia), the Elements paper was based on inputs from Member States, civil society, academia, and other stakeholders, and laid a foundation for the Outcome Document of FfD4. The statement delivered by Regions Refocus drew from the Civil Society FfD mechanism’s inputs to the Elements paper.
The statement emphasized the unbreakable connection of trade and development, highlighting the need for a fair and equitable international trade system. While trade can be a powerful engine for development, it must be complemented by the right policies, and sufficient policy space. The current international trade regime– as currently organized around the World Trade Organization and the web of multilateral, regional and bilateral trade and investment agreements, and reinforced by policy prescriptions of the international financial institutions– has failed most developing countries, including Least-Developed Countries, in Africa and elsewhere.
The statement called out the Investor-State-Dispute-Settlement (ISDS) mechanism as an instrument which significantly contributes to the unequal balance of power in the trade arena. The ISDS mechanism allows corporations to sue states in secret tribunals that overwhelmingly rule in favor of corporate interests. This is a reversal of global priorities for development and for the public good. As such, the statement called for a multilateral agreement banning ISDS provisions in international investment agreements.
Additionally, the statement urged that non-compliance with trade and investment commitments be permitted if they hinder the ability of countries to achieve their public policy goals. The Global South should not be forced to prioritize the economic interests of the Global North over their own social and development objectives. This imbalance is being perpetuated by unilateral trade measures such as the EU’s Carbon Border Adjustment Mechanism, which discriminate against developing countries by unilaterally imposing so-called sustainability standards on their exports. The statement voiced a call to ban such measures.
Finally, the statement situated FfD4 within the need for broader transformation of the economic and financial architecture. This includes reconfiguring trade policies to foster structural transformation in developing countries, reduce inequality (including gender inequality), and support sovereign industrialization processes to build domestic productive capacities. What is needed is a balanced pursuit of all three dimensions of sustainable development– economic, social, and environmental– through trade policies. It is crucial that FfD4 play a central role in propelling this agenda of transformation.
