The United Nations 2030 Agenda for Sustainable Development covers 17 goals, the tenth of which is "Reduced inequalities", namely: Reduce inequality within and among countries. 

Under this major goal, there are ten targets, the sixth of which is "Ensure enhanced representation and voice for developing countries in decision-making in global international economic and financial institutions in order to deliver more effective, credible, accountable and legitimate institutions".

● Current Situation

About the World

COVID-19 Intensifies Global Economic Prospects

Photo source: un.org

A recovery is underway, but the economic fallout from the global pandemic could be with us for years to come. With the crisis exacerbating prepandemic vulnerabilities, country prospects are diverging. Nearly half of emerging market and developing economies and some middle-income countries are now at risk of falling further behind, undoing much of the progress made toward achieving the UN Sustainable Development Goals. Most developing countries still have limited influence in global negotiations on rule making and determining the policies of key financial and economic institutions.

Text source: imf.gov

About China

Participating in Reforming International Financial Institutions

Photo source: baidu.com

China, being one of the world's largest developing countries and emerging market countries, has actively promoted the reform of international financial institutions and participated in the construction of new international economic and financial mechanisms, which has become a useful supplement to the existing global economic governance system and international financial institutions. China has ideas, mechanisms, actions and achievements in promoting the reform of global economic governance. Based on its own development needs and taking into account the common interests of all countries, China has become a leader in reforming and improving the global economic governance system.

Text source: chinasemission-vienna.at 

●  Cases

About the World

IMF Provides Capacity Development

The IMF provides capacity development— hands-on technical assistance, policy- oriented training, and peer-learning opportunities—to help countries build sustainable and resilient institutions. These efforts are an important contribution to countries’ progress toward the UN Sustainable Development Goals. 

Photo source: baidu.com

The IMF works with countries through a global network of 17 regional centers; the newest center, the Caucasus, Central Asia, and Mongolia Regional Capacity Development Center (CCAMTAC), opened virtually in February 2021. The IMF published more than 80 technical notes on crisis-related policy issues during the early stages of the COVID-19 crisis. It also helped countries strengthen their collection and publication of economic data to improve economic decision- making and boost transparency. As countries ramped up emergency spending, the IMF helped strengthen their governance frameworks to better ensure that money quickly reached those most in need and that governments were accountable for how they spent the money. In response to the COVID-19 pandemic, the IMF has provided real-time policy advice and capacity development to more than 175 countries.

Text source: IMF Annual Report 2021

About China 

China Merchants Bank Supporting Environmental Protection

China Merchants Bank has strongly supported environmental protection by its sewage treatment project of batch unified borrowing and repayment financing. The practice was awarded the Shenzhen Excellent Green Finance Case in 2020.

Photo source: baidu.com

Due its small scale, the small sewage plant project has been facing the difficulties of rigid construction demand and expensive financing. China Merchants Bank sets regional portfolio risk control standards and individual project access standards by unifying borrowing and repayment of batch projects and selecting project financing methods and providing overall financing scheme for water platform company. By doing so, it solves the financing needs of its subordinate project companies. The risk of cash flow volatility of individual projects can be solved by collecting the funds of the project company in the water platform company. The model also introduces risk dispersion and risk sharing mechanism, which solves the financing problems of single projects of small sewage plants at lower levels without increasing the financing cost and burden of the project company.

Text source: greenfinance.org.cn

●  Background

Sustainable Development Goals (SDGs) Initiated by the United Nations

On 1 January, 2016, the 17 Sustainable Development Goals (SDGs), including 169 targets, of the 2030 Agenda for Sustainable Development — adopted by world leaders in September 2015 at an historic UN Summit — officially came into force. Countries will mobilize efforts to end all forms of poverty, fight inequalities and tackle climate change, while ensuring that no one is left behind.